Vineland Homes, Inc. v. Barish

292 P.2d 941, 138 Cal. App. 2d 747, 1956 Cal. App. LEXIS 2431
CourtCalifornia Court of Appeal
DecidedJanuary 30, 1956
DocketCiv. 21172
StatusPublished
Cited by15 cases

This text of 292 P.2d 941 (Vineland Homes, Inc. v. Barish) 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
Vineland Homes, Inc. v. Barish, 292 P.2d 941, 138 Cal. App. 2d 747, 1956 Cal. App. LEXIS 2431 (Cal. Ct. App. 1956).

Opinion

WHITE, P. J.

Defendants Max Barish, Charles Mirken, Sam Wishnow and Ben Wishnow have appealed from a judgment against them, as follows.-

That the clerk of the superior court pay to plaintiff Vine-land Homes, Inc., hereinafter referred to as “Vineland,” the sum of $5,742.75 deposited with said clerk by defendant Bank of America and that appellants have no right, title or interest in or to said funds.

That the appellants pay to Vineland the sum of $16,942.30 as damages for breach of contract for the sale of real property, $235.70 costs of suit, and $4,000 as attorneys’ fees to date of judgment, and that the court reserve jurisdiction to award additional attorneys’ fees to Vineland in the event of an appeal or other proceedings subsequent to entry of judgment.

That the appellants pay to cross-complainant Robert L. Swanson, doing business as Swanson Realty Company, the sum of $1,462.50 as real estate commission, and in addition thereto, the sum of $300 as attorney’s fees to date of judgment, and costs of suit $17.40; and that the court reserve jurisdiction to award to Swanson additional attorneys’ fees in the event of further proceedings.

Ben Wishnow, as cross-complainant, has also appealed from the portion of the judgment providing that he take *750 nothing by his cross-complaint, that he pay to cross-defendant Ehrlich $300 as attorneys’ fees to date of judgment; and that the court reserve jurisdiction to award additional attorneys’ fees in the event of further proceedings.

The instant action arose out of an agreement for the purchase by Ehrlich, Vineland’s assignor, and the sale by appellants of a tract of land. The facts will be detailed in connection with the assignments of error to which they are pertinent.

Appellants urge that it was error to award to Vineland the $5,742.75 deposited with the clerk of the court by the Bank of America. The amount is the remainder of $6,000 deposited with the Bank of America, after deduction of the bank’s charges and expenses.

Instructions to the Bank of America, signed by Ehrlich, accompanied the $6,000 deposit and provided that it and the balance of the purchase price, $52,500 thereafter to be paid into escrow, should be paid to appellants when the title to the tract “free and clear from any and all encumbrances” was “vested in: Arthur K. Ehrlich, or nominee.” Appellants refused to sign any escrow instructions or deed which did not reserve oil and mineral rights, and the balance of the purchase price was not paid into escrow. Ehrlich’s instructions to the Bank of America further provided: “If you are unable to comply with these instructions on or prior to May 14, 1953, you will comply as soon thereafter as possible unless a written demand for return of money or instruments by a party to this escrow is received by you subsequent to such date and prior to the recording of any instrument provided for herein.” The bank received a demand from Ehrlich for payment to him and one from appellants for payment of the money to them, but, under other provisions of Ehrlich’s instructions, paid the money to the clerk of the court.

The money was deposited with the buyer’s instructions. The conditions of his instructions were never complied with. Buyer, therefore, retained ownership of the money. His failure to deposit the balance in accordance with the agreement did not transfer ownership of the deposit to the sellers. Buyer continued to own the money and was entitled to withdraw it after the expiration of the escrow. (Kellogg v. Curry, 101 Cal.App.2d 856, 859 [226 P.2d 381] ; Hildebrand v. Beck, 196 Cal. 141, 145-146 [236 P. 301, 39 A.L.R. 1076] ; Norris v. San Mateo County Title Co., 37 Cal.2d 269, 273 [231 P.2d 493].)

*751 It is contended by appellants that the court erred in allowing interest on the money deposited by the vendees in the escrow. The judgment mentions no interest. An examination of the findings and conclusions, however, shows that interest on the amount deposited in escrow is included in the $16,942.30 awarded to respondent as damages occasioned by appellants’ breach of contract. Damages will be discussed later.

Appellants urge that Vineland was entitled to nothing in the instant action because the alleged oral assignment to it from Ehrlich was void and admission of evidence thereof was prejudicial error. (Code Civ. Proc., §§ 1971 and 1973.)

The assignment was alleged in the complaint of Vineland and Ehrlich. Appellants demurred thereto on several grounds including the misjoinder of parties plaintiff “in that the plaintiff Arthur K. Ehrlich does not have any title nor interest in and to the subject matter of the complaint.” Demurrer for misjoinder of parties plaintiff was sustained and Vineland, as sole plaintiff, filed an amended complaint again alleging said assignment. Appellants in their answer denied the allegation of assignment. However, 'by the counterclaim which is a part of that answer, they sought damages alleged to have been caused by a breach of contract by Ehrlich, “the plaintiff’s assignor.” Appellant Ben Wishnow filed a cross-complaint against Vineland and alleged therein that Vineland “assumed and agreed to be bound by the terms and conditions of said contract on their part to be performed. ” His prayer is for the $6,000 deposited in escrow and for $8,025 damages. Each of appellants testified that, in the event of judgment for Ben Wishnow on his cross-complaint, the amount recovered would be divided equally between them. Vineland, in its answer to the cross-complaint, admitted the assignment and that it “assumed the obligations to be performed by the purchaser thereunder.”

Not only have appellants raised no issue regarding the form or validity of the assignment by Ehrlich to Vine-land, but in their pleadings and testimony they have relied upon the assignment. The admission of evidence thereon was not prejudicial.

Since the escrow instructions of Ehrlich and appellants were materially different, the instructions are not a contract between them. Their rights against each other depend upon their mutual agreement.

Before February 21, 1953, appellants gave an oral listing on the tract to George McLoney and Paul Fishnich, real *752 estate brokers, who orally agreed with Swanson that if he procured a purchaser for the property they would split their real estate commission with him.

February 21, 1953, Swanson procured a written offer of $57,500 from Ehrlich and submitted it to appellants through their brokers and Ben Wishnow. That offer was made on a printed form of “Deposit Receipt” in which had been inserted “Seller guarantees subdivision is a matter of record and approved by proper authorities.” It was rejected by appellant Ben Wishnow, who then made a counteroffer also on a printed form of deposit receipt, signed “B. Wishnow, Seller” and by Swanson and McLoney as brokers before said brokers submitted it to Ehrlich, who signed it as buyer on February 24, 1953.

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Bluebook (online)
292 P.2d 941, 138 Cal. App. 2d 747, 1956 Cal. App. LEXIS 2431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vineland-homes-inc-v-barish-calctapp-1956.