Waller v. Brooks

267 Cal. App. 2d 389, 72 Cal. Rptr. 228, 1968 Cal. App. LEXIS 1398
CourtCalifornia Court of Appeal
DecidedNovember 13, 1968
DocketCiv. 31806
StatusPublished
Cited by14 cases

This text of 267 Cal. App. 2d 389 (Waller v. Brooks) 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
Waller v. Brooks, 267 Cal. App. 2d 389, 72 Cal. Rptr. 228, 1968 Cal. App. LEXIS 1398 (Cal. Ct. App. 1968).

Opinion

STEPHENS, J.

This is a case involving two separate actions which were consolidated for the purposes of trial. Since in the one action (No. 856,467) Ruth Irene Brooks is plaintiff and John A. Waller, Jr. is defendant and cross-complainant, and in the other action (No. 862,256), Waller 1 is plaintiff and Brooks is defendant and cross-complainant, we shall henceforth refer to the parties by name rather than as plaintiff and defendant.

In action No. 856,467 Brooks filed a complaint seeking recovery on a promissory note plus interest and attorney fees. Waller admitted liability as alleged in Brooks’ complaint but cross-complained for an amount purportedly due him on an open book account. The trial court found against Waller on his cross-complaint. Accordingly, judgment was rendered for Brooks against Waller on the promissory note, including *391 interest and attorney fees. No appeal has been taken from this judgment.

In action No. 862,256 Waller sued Brooks for breach of contract and monies had and received by Brooks out of escrows involving certain real properties. Brooks filed an answer and counterclaim seeking to recover damages for certain allegedly fraudulent representations made by Waller. In addition, Brooks filed a cross-complaint seeking a declaratory judgment that Waller had forfeited his right to a return of the monies paid into escrow by reason of his own default, or, in the alternative, that Brooks was entitled to specific performance. At trial, the question of specific performance was not pressed, and is not an issue on this appeal. The trial court awarded judgment for Waller on his complaint in this action No. 862,256, and found against Brooks on her counterclaim and cross-complaint.

From a consolidated judgment entered on August 5, 1966, in 'which Brooks was allowed an offset for her judgment in action No. 856,467 on the promissory note, Brooks prosecutes this limited appeal specifically from the judgment in action No. 862,256 in favor of Waller on his complaint in that case.

Since no issue is raised as to the correctness of the trial court’s calculations of the amounts involved in the various transactions, we will omit all reference to such in the interests of clarity. The contentions of Brooks on this appeal are essentially twofold:* 2 (1) that the trial court erred in finding that Brooks breached the contract, and (2) that the trial court erred in finding that certain representations (allegedly) made by Waller to Brooks were not fraudulent.

The pertinent facts which gave rise to the present dispute can be summarized as follows: Prior to August 26, 1964 Alford (the nominee for Waller) was the record owner of a single family residence located at 1966 Outpost Circle, Hollywood; California. At that time Brooks was the record owner of a single family residence located at 3344 Bonnie Hill Drive, Hollywood, California, and two single family residences located at 20550 and 20552 Pacific Coast Highway, Malibu, California.

*392 On or about August 26, 1964 Waller and Brooks entered into a contract which provided for a trade or exchange of Waller’s equity in Outpost Circle 3 over and above a proposed first trust deed for the equity of Brooks in Bonnie Hill Drive, and 20550 Pacific Coast Highway over and above existing deeds of trust. Separate escrows were opened which recited the equity which each party had in their respective properties and the existing trust deeds to which Brooks’ parcels were subject.

Subsequently, when it was discovered that the amount of the proposed first trust deed on Outpost Circle as originally contemplated by the parties was not obtainable, Waller and Brooks agreed that Waller would accept, in addition, Brooks’ equity in 20552 Pacific Coast Highway, and a non-interest-bearing second trust deed on Outpost Circle to make up the difference.

On October 7, 1964, the Outpost Circle and Bonnie Hill Drive escrows were closed in accordance with their terms, and are not at issue in this litigation.

Subsequently it was discovered that certain third trust deeds on the Pacific Coast Highway properties which Waller had agreed to assume each contained an acceleration clause which provided that in the event of a sale or transfer of said properties all sums secured by such trust deeds may, at the option of the holder, become immediately due and payable.

On or about September 30, 1964, the parties executed an amendment to the escrow instructions, under which Brooks undertook to provide refinancing so that the acceleration clauses in the third trust deeds would be removed.

On September 30, Brooks executed. and delivered into escrow a grant deed of the premises at 20550 Pacific Coast Highway to Alford/Waller.

On or about October 7, 1964, Brooks executed and delivered into escrow a grant deed of the premises at 20552 Pacific Coast Highway to Alford/Waller.

On or about February 25, 1965, Brooks caused the elimination of the acceleration clauses in the third trust deeds on each of the Malibu properties. On March 16, 1965, Brooks notified Waller by letter that the acceleration clauses in the third trust deeds had been eliminated. By letter dated March 27, 1965, Brooks notified Waller that she had given instructions that the Malibu property escrow was to close on April 5, *393 1965. This letter also recited that Brooks had fully performed all obligations required of her and was ready, willing and able to perform any additional acts which might be necessary.

On April 8, 1965, Brooks notified Waller by letter that the escrow did not close on April 5 because of Waller’s failure to comply with the escrow terms, and that unless Waller did so by April 15, Brooks would cancel the escrow.

Waller made no reply to, nor took any action with regard to, any of the above letters.

On April 19, 1965, Brooks notified Waller by letter that the escrow had been cancelled.

On or about April 5, 1965, Brooks had withdrawn the grant deeds to the Malibu properties and, in any event, as of that date there was no money in the escrow for a title policy and proration.

On the basis of the above facts, the trial court held that both parties were in breach of the underlying contract, and neither had complied with the terms of the escrow. The court then sought to return the parties as nearly as possible to the position they occupied prior to the transactions involving the Malibu properties.

Accordingly, the trial court denied Brooks’ plea for specific performance, and awarded Waller the amount which he had invested in the Malibu properties, less the fair rental value of such properties during the period of Waller’s occupancy, and less his fair share of the prorated real estate taxes on such property.

A consolidated judgment was entered for Waller against Brooks on his complaint in the amount of $32,041.58, from which figure an offset was given Brooks in the amount of $14,493 on her judgment in case No. 856,467, leaving a net balance of $17,548.58 due Waller.

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Cite This Page — Counsel Stack

Bluebook (online)
267 Cal. App. 2d 389, 72 Cal. Rptr. 228, 1968 Cal. App. LEXIS 1398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waller-v-brooks-calctapp-1968.