World Savings & Loan Ass'n v. Kurtz Co.

183 Cal. App. 2d 319, 6 Cal. Rptr. 665, 1960 Cal. App. LEXIS 1753
CourtCalifornia Court of Appeal
DecidedJuly 29, 1960
DocketCiv. 24387
StatusPublished
Cited by11 cases

This text of 183 Cal. App. 2d 319 (World Savings & Loan Ass'n v. Kurtz Co.) 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
World Savings & Loan Ass'n v. Kurtz Co., 183 Cal. App. 2d 319, 6 Cal. Rptr. 665, 1960 Cal. App. LEXIS 1753 (Cal. Ct. App. 1960).

Opinion

FOURT, J.

This is an appeal from a money judgment granted plaintiff on account of certain expenditures made by plaintiff under the provisions of a written contract.

The plaintiff brought the action for money allegedly due under a written contract (see footnote, infra), for the sharing of the cost of installation of certain off-site improvements in certain subdivisions and on a common count for work, labor and service performed. The defendant filed its answer denying the obligation and further set up certain affirmative defenses, namely; (1) that there was an unreasonable delay in the doing of the work contemplated in the contract by the plaintiff which allegedly constituted a breach of the written agreement by the plaintiff; and (2) that there was not a good and valuable consideration for the agreement. The trial court found upon substantial evidence that there was no unreasonable delay in the performance of the work and that there was no substantial breach of the agreement which excused the defendant from performance thereunder and that there was a good and valuable consideration, and gave judgment accordingly. A motion for a new trial was denied.

A résumé of some of the facts is as follows:

According to the maps filed as exhibits at the time of trial, Devonshire Street runs generally east and west. Mayall Street is one block to the south of Devonshire and runs generally east and west. Lassen Street is one block to the south of Mayall Street and runs generally east and west. Gothic Avenue runs generally north and south and intersects Mayall Street and extends at least to Devonshire on the north and to Lassen on the south. Woodley Avenue runs generally north and south and is one block to the east of Gothic Avenue. Havenhurst Avenue runs generally north and south and is one block west of Gothic Avenue. Tract Number 20918 is immediately to the east of Gothic Avenue, north of Lassen Street and south of Mayall Street. Tract Number 21133 is immediately to the east of Tract Number 20918, west of Woodley Avenue, north of Lassen Street and south of Mayall Street. *322 Tract Number 20998 is immediately to the south of Mayall Street, west of Gothic Avenue and north of Lassen Street and extends westward to what appears to be the boundaries of the county flood control channel. Tract Number 15851 is immediately to the west of Gothic Avenue, south of Devon-shire and north of Mayall and extends westward to what appears to be the boundaries of the county flood control channel.

On and before August 11, 1955, defendant Kurtz Company, Inc., was the owner and developer of tracts numbered 20918 and 21133. The plaintiff’s predecessors in interest, Pennfield Park, Inc., and Powell Park, Inc., were the owners of the adjoining tracts to the west, numbered 15851 and 20998. On about August 11, 1955, the then parties made and entered into an agreement, a copy of which is set forth. 1

*323 On January 20, 1956, the plaintiff acquired from Pennfield Park, Inc., and Powell Park, Inc., tracts numbered 15851 and 20998 and an assignment of their rights under the contract of August 11, 1955.

Voorheis and Trindle, engineers and surveyors, prepared the tract maps and did the engineering work and layouts for the plaintiff, the plaintiff’s predecessors in interest and the defendant as to all four tracts. The Voorheis firm apparently discussed with the parties the advisability of joining “together in the construction of the outlet facilities for the two tracts, rather than to have it all on one, or all on the other, without jockeying to see who recorded it first or second.” Apparently in the absence of an agreement between the parties the company first recording the subdivision map of its property would have been required to install sewer lines in Gothic Avenue and Lassen Street to which the other would have been able to connect without charge for the cost of installation of such off-site sewer lines.

*324 The city of Los Angeles as a condition for the approval of the subdivision maps required, among other things, that sewer systems be installed, together with connections to the Havenhurst Avenue main outfall sewer line. The cost of the installation of the street and sewer line improvements on Gothic Avenue, as set forth in Paragraphs 1 and 2 of the written agreement were shared between the plaintiff and defendant corporations without difficulty. The dispute with which we are now concerned arises over the division of the costs of installing the off-site sewer line in Lassen Street. A plan for the installation of the main off-site sewer line in Lassen Street had been prepared by the Voorheis firm for the defendant company and plaintiff’s predecessors on or before August 11, 1955. That plan was approved and signed by the city engineer of Los Angeles on or about October 24, 1955 and was on file with the city engineer in December of 1955. In December, 1955, the Department of Water and Power of the City of Los Angeles installed a high pressure water line of about 18 inches, 6 feet to the south of the then existing 14-inch water line and 1 foot from the originally planned location of the sewer line. It became necessary therefrom for the Voorheis firm in June or July of 1956 to plan a relocation of the Lassen Street sewer line at a substantial increase in costs.

In January of 1956 the plaintiff entered into a contract with the M. Miller Company for the installation of certain sewers on tracts 20998 and 15851 including the installation of the Lassen Street sewer line. The Miller Company performed a part of the contract with reference to the construction of the on-site sewers. In August of 1956 Miller Company notified the plaintiff that it would not be bound by its contract because of the installation of the high pressure line in Lassen Street by the Department of Water and Power which would necessarily increase the cost of the sewer line materially.

The plaintiff informed the defendant of the situation with reference to the Lassen Street sewer line and of the increased costs arising because of the construction of the high pressure water line by the Department of Water and Power. The defendant urged the plaintiff not to construct the sewer line at the increased cost and further urged the plaintiff to take action which might have resulted in holding the Department of Water and Power responsible for the increased costs.

In March of 1957 the plaintiff secured a bid from the sewer contracting firm of Drummond and Bronneek for the construction of the sewer line in question for the sum of $18,027. The *325 plaintiff attempted to secure the consent of the defendant to the making of such a contract to construct the sewer line. The defendant refused and continued to urge upon the plaintiff that it attempt to compel the city of Los Angeles either to install the line itself or pay the added costs.

In September of 1957 when it was no longer possible to defer the construction of the sewer line the plaintiff contracted with Drummond and Bronneek for the construction of the sewer line for the sum of $19,000. The sewer was installed and the plaintiff paid Drummond and Bronneek the amount due under their contract.

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Bluebook (online)
183 Cal. App. 2d 319, 6 Cal. Rptr. 665, 1960 Cal. App. LEXIS 1753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/world-savings-loan-assn-v-kurtz-co-calctapp-1960.