Wright v. Rogers

342 P.2d 447, 172 Cal. App. 2d 349, 1959 Cal. App. LEXIS 1962
CourtCalifornia Court of Appeal
DecidedJuly 27, 1959
DocketCiv. 23112
StatusPublished
Cited by33 cases

This text of 342 P.2d 447 (Wright v. Rogers) 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
Wright v. Rogers, 342 P.2d 447, 172 Cal. App. 2d 349, 1959 Cal. App. LEXIS 1962 (Cal. Ct. App. 1959).

Opinion

VALLEE, J.

This is a suit to cancel a grant deed and three deeds of trust, to quiet title to two parcels of realty, for damages and other relief. The judgment was for plaintiff canceling the grant deed and the three deeds of trust, quieting her title to the two parcels of realty, and awarding her $2,000 compensatory damages and $2,000 punitive damages against certain defendants.

The defendants are: Alan Rogers; his wife, Gersha Rogers; Josef S. Noble; Warrog, Inc., a corporation, doing business as Majestic Homes, called Warrog or Majestic; Olympia Mortgage Company, called Olympia; Canoga Park Savings and Loan Association, called Canoga; Fannie Freedman; Consolidated Escrow Company, a corporation; and Title Insurance and Trust Company.

Alan Rogers was president of Warrog; Jack Warniek, its secretary. They were its only stockholders. Olympia was a licensed broker engaged in procuring loans. Noble was office manager of Olympia.

Since 1950 plaintiff, a widow, with insignificant business experience, has been the owner and in possession of two lots: 60 and 61. Lot 61 was at all times improved with a residence in which plaintiff resided. Prior to January 1957 Lot 60 was unimproved. On April 1, 1956, Lots 60 and 61 were encumbered with a first deed of trust in favor of Orange Savings and Loan Association in the approximate amount of $1,736.80, payable $42 a month, and with a second deed of trust in *353 favor of Gubiotti in the approximate amount of $5,333.55, payable $48.50 a month. Plaintiff worked at the county hospital. Her take-home pay was about $200 a month.

About April 1, 1956, a man named Anthony, an employee of Warrog whom plaintiff did not know, called on her at her home. Anthony told plaintiff he was with Majestic Homes and asked her if she would be interested in buying a house for Lot 60. Anthony told her Majestic was in the business of finding vacant lots on which to move houses from the freeway. He told her the offer was “with 100 per cent financing,” she would not have to have any money to pay down on the property, and when the house was “put in” she could pay for it out of the rent she collected. Plaintiff told Anthony she was not interested, she owed too much money on the property and did not care to go into it.

About a week later Anthony again called on plaintiff. He asked her if she had thought over what he had said. Plaintiff told him she had but she did not “want to go into getting the house,” that she was tired, had just come from work, her son had recently been killed, her mother had died, and she was too worried to be bothered with anything. Anthony told her she would not have to do “too much worrying about it”; they knew how to arrange the deal for her; all she would have to do was sign the papers; the necessary arrangements would be made; she would get it with 100 per cent financing; and she could pay for it with payments as low as rent.

About two weeks later Anthony telephoned plaintiff and asked her if she would “like to go and look” at some houses, perhaps if she saw one she liked “maybe” she would think about getting one. About May 1, 1956, Anthony showed her “A court of houses.” Plaintiff told him, “I don’t like any of these houses and I still can’t see how I could get a house anyway, I owe too much for my present property.” Anthony then took her to the office of Majestic Homes and introduced her to Warniek, who showed her photographs of houses. She saw one she thought she would like. Warniek told her that if she liked it they could make arrangements “for getting it.” The next day Anthony drove her to Tarzana to see that house. On the trip Anthony told her she could not go wrong in getting a home; Majestic was a very reliable company; he had known them quite a while; they had helped him invest his money; he had been a tailor and had only been able to save a certain amount of money; and since he had been with *354 Majestic they had enabled him to invest his money so that he was now the owner of five houses. Plaintiff told him she liked the house but did not see how she could get it.

Plaintiff and Anthony returned to Majestic’s office and plaintiff saw Warnick. Anthony said plaintiff “liked the house and she wants to see if she can make some kind of a deal about the house.” Warnick told her: “The house would cost you about $6,000”; “For $1,500 we could move the house in on your lot and complete it.” Plaintiff testified: “I said, ‘All right.’ I thought that that would be O.K. I told him that I had never entered in any legal matters before, that I didn’t know anything about buying real estate, and he told me that I didn’t have to worry about it, that they were a reliable company, that he would see to everything for me and that I would just have to sign the papers.”

The next day Warnick went to see plaintiff’s property. He said to her: “Mrs. Wright, I came to look over your place and to see how large the lot was and everything”; “You have got a gold mine here”; “It would be foolish not to put a house on the lot. You could be making money out of it.”

The following day an escrow was opened for the purpose of obtaining a loan. On May 24, 1956, plaintiff signed an instrument in which Majestic Homes, a partnership, agreed to sell and she agreed to buy the house she had seen at Tarzana. The agreement provided plaintiff would pay Majestic Homes, a partnership, $7,692; the parties would open an escrow for the consummation of the agreement; and plaintiff would deposit in the escrow a promissory note covering the deferred balance of the purchase price ($7,692) with interest at 7.2 per cent per annum, a deed of trust on Lots 60 and 61 as security for the note, and a chattel mortgage on the house. The agreement also contained this provision: “Tree Service 270— 1500— for completion to be added to note Majestic Homes guarantees financing Price includes escrow, sales tax, bond, Bldg permit Insp, Fire Insurance.” It recited that Alan Rogers and Jack Warnick were the partners in Majestic Homes, a partnership, and that it would not be valid or binding on the seller unless signed by either Rogers or Warnick. It was not signed by either of them. Plaintiff understood that under the agreement Majestic Homes would refinance her property ‘ ‘ 100 per cent, ’ ’ the two encumbrances on the property would be paid, and she would then pay Majestic. On May 25, 1956 plaintiff signed escrow instructions, a note payable to Warrog, doing business as Majestic *355 Homes, in the amount of $9,462, payable on or before December 1, 1956, with interest at 7.2 per cent payable at maturity, a deed of trust covering Lots 60 and 61 securing the note, and a chattel mortgage on the house. The escrow instructions provided that the deed of trust securing the $9,462 note should be a third deed of trust, and contained this provision: “Majestic guarantees refinancing for amount of principal balance at maturity provided there are no additional liens against property and provided first & second trust deeds have been paid up to date, and provided notice of completion has been filed. ’ ’

On August 3,1956, the note for $9,462 was delivered by the escrow holder to Warrog and a bill of sale of the Tarzana house was mailed to plaintiff. The Tarzana house was moved onto Lot 60 in September 1956 and was ready for occupancy about the middle of January 1957.

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Bluebook (online)
342 P.2d 447, 172 Cal. App. 2d 349, 1959 Cal. App. LEXIS 1962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-rogers-calctapp-1959.