United Pacific Insurance v. Cann

276 P.2d 858, 129 Cal. App. 2d 272, 1954 Cal. App. LEXIS 1596
CourtCalifornia Court of Appeal
DecidedDecember 1, 1954
DocketCiv. 15991
StatusPublished
Cited by9 cases

This text of 276 P.2d 858 (United Pacific Insurance v. Cann) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Pacific Insurance v. Cann, 276 P.2d 858, 129 Cal. App. 2d 272, 1954 Cal. App. LEXIS 1596 (Cal. Ct. App. 1954).

Opinion

DOOLING, J.

Appellants brought this action to foreclose a chattel mortgage. Judgment was given for plaintiffs as to all of the issues and all of the property against all defendants except as to the property in controversy with defendant-respondent Alaska Packers Association.

On June 13, 1947, one Gann was the tenant in possession of certain real property owned by respondent which he was using for shipbuilding. On that date he executed the chattel mortgage upon which this action is based. The lease under which Gann held possession provided that certain structures etc. placed on the real property by the lessee or certain of his predecessor tenants “shall be and remain personal property whether or not affixed to the demised premises, and Lessee shall have the right to remove the same upon any termination of this lease.”

Gann got into serious financial difficulties and in November, 1947 he abandoned the leased premises. On October 27, 1947, Gann assigned all of his assets in the shipyard for the benefit of all creditors, to the legal firm of Dannenbrink & Graves. (Graves is one of appellants herein and Dannenbrink is his counsel.) On January 12, 1948, by a group of instruments simultaneously executed, the assignment for benefit of creditors was transferred to one Ferro, and Ferro entered into a contract with one Peterson to sell all of the physical assets of said shipyard to Peterson upon Peterson’s agreement to pay $5,000 down and $1,200 per month until the total sum of $125,000 was paid. It was further agreed that the down payment of $5,000 and $1,000 per month of the $1,200 monthly payments should be paid to and for the benefit of appellants herein “until there has been paid . . . for said account the sum of $60,000, plus interest at 5% . . .” The balance was to go to the payment of the other creditors.

By a lease dated January 1, 1948, (but as to which there is testimony that it did not become operative until the aforesaid agreements of January 12 were executed) respondent leased the same real property to Peterson with a similar clause in the lease regarding any structures etc. placed on the property by Gann or his predecessors above quoted giving the like right to remove them to Peterson. Peterson likewise fell into *274 arrears in his rent and in January 1949, he quit the premises without exercising his right to remove any of the property here in issue from the premises.

The complaint in this action was filed on October 24, 1950. The trial court found in favor of respondent that it was the owner of the following equipment: 1. Marine ways for small boats with accessory equipment; 2. large marine ways with accessory equipment; 3. electric wiring; 4. one incinerator.

As to the incinerator appellants claim that respondent during the trial relinquished any claim to it and a reading of the record satisfies us that this is correct. While one Wall, respondent’s yard superintendent, was being examined on direct as a witness for respondent he testified concerning the incinerator : “So far as the Alaska Packers are concerned, anybody that would remove it would be entitled to it.”

Thereafter on cross-examination of the same witness the following occurred :

“Mr. Dannenbrink: Q. The issue narrows down, Mr. Wall, the way I understand it, to a dispute over the small marine ways, the large marine ways, the electric wiring and the incinerator? A. The incinerator out, because——-
“Q. All right. You are making no claim to the incinerator, is that it? A. Not worth any, can’t be used, it is a liability on the property.”

Counsel for appellant then desisted from cross-examination concerning the incinerator and went on to the other matters. We are not holding that its yard superintendent, called as a witness by respondent, could waive a claim asserted by respondent. But here in the face of the witness’ statements counsel for respondent remained silent. No objection was made to the question: “You are making no claim for the incinerator, is that it?” and when the witness answered in the affirmative counsel for respondent did nothing to disavow his action. We are satisfied that on the state of this record counsel for respondent by their conduct must he held to have acquiesced in the withdrawal of any claim to this item by their own witness who was at least a responsible employee, and that counsel for appellants were reasonably entitled to understand what had occurred as having that effect.

As to the three other items the court found that they were substantially, or in part constructively, affixed to the premises and were in fact fixtures. The evidence supports this finding. The two ways were attached to pilings driven into the mud below the water. They consist of “caps” with *275 rails on top of them attached by spikes. A cradle runs on the tracks which is attached to the winch by a cable. The winch is set in a concrete block and bolted to it. The testimony as to both ways was that the cradle and winch are essential parts of the ways which cannot be operated without them. The electric wiring is attached to power poles set in the ground and in places runs underground in conduits.

These articles fall well within the definition of Civil Code, section 660, as construed by the courts. In large part they were attached to the realty in a substantial manner. (San Diego T. & S. Bank v. San Diego County, 16 Cal.2d 142 [105 P.2d 94, 133 A.L.R. 416]; City of Los Angeles v. Klinker, 219 Cal. 198 [25 P.2d 826, 90 A.L.R. 148]; Lavenson v. Standard Soap Co., 80 Cal. 245 [22 P. 184, 13 Am.St.Rep. 147]; McKiernan v. Hesse, 51 Cal. 594.) It is also the rule that portions of equipment not attached to the realty but which are used with and essential to other portions attached to the realty constitute a unit and are constructively annexed. (Southern Cal. Tel. Co. v. State Board of Equalization, 12 Cal.2d 127 [82 P.2d 422].)

Appellants’ main contention is that by the terms of the lease to Cann these properties were made personal property by agreement of the parties and that the lien of their chattel mortgage is therefore superior to any claim of respondent. The court found that the right of appellants to treat these articles as personal property had been lost by their not exercising it within a reasonable time. Herein the parties differ as to the respective rights in fixtures between the owner of the realty and the chattel mortgagee of a tenant who is given the right to remove the fixtures. We may take it as settled in California that a tenant who is given the right to remove fixtures at the end of his occupancy must exercise this right within a reasonable time thereafter. (Cone v. Western Trust & Sav. Bank, 21 Cal.App.2d 176 [68 P.2d 981].)

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Bluebook (online)
276 P.2d 858, 129 Cal. App. 2d 272, 1954 Cal. App. LEXIS 1596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-pacific-insurance-v-cann-calctapp-1954.