Rosenthal v. Silveira
Rosenthal v. Silveira
Opinion of the Court
Appeal from a judgment; rendered in favor of plaintiff and respondent, for the sum of $8,257.75, together with costs and disbursements, ordering that plaintiff have a lien upon the real property involved in the action to the amount of the judgment, and canceling and annulling a contract, wherein plaintiff agreed to purchase from defendant, and defendant agreed to sell, the real property described in the pleadings. The judgment of the court below is for the return of the payments made by plaintiff on the purchase price of the land, and interest, on the theory that there was a rescission , of the contract.
Plaintiff in the case is an experienced real estate operator and engineer by profession. He bought the property for subdivision purposes. He understands perfectly the English language. Defendant is a Portuguese farmer, unable at all to read or write the English language and understanding it at best but imperfectly.
The property in question was part of the farm owned and cultivated by the defendant. The contract provided for the sale of the property for the sum of thirty thousand dollars, five thousand dollars of which amount was paid on execution of the contract. The balance of twenty-five thousand dollars was payable at any time within four years from date. The contract also provided that all taxes on the property, which became due after June 30, 1913, were to be paid by plaintiff, who was also obligated to pay interest on the deferred payments at six per cent net per annum, payable semi-annually, the contract not stating whether such interest payments were to be paid in advance or otherwise. Under the terms of the agreement, plaintiff was given the right to a conveyance of one or more acres of the land, upon the payment of three hundred dollars, or five hundred dollars, per acre, according to the location of the property, but no definite time was stated when or under what conditions such conveyances should be made. Time was made the essence of the contract.
Plaintiff took possession of the property, built roads therein, destroying some of the fruit trees in so doing, and plotted out the property for subdivision purposes.
The tract, being part of defendant’s entire acreage, was assessed in one amount for 1913-14. Rather than allow the tax to go delinquent, and after his attention had been called to the matter by the tax collector, the defendant paid taxes on the whole *640 tract for the year 1913 when they became due. After settlement as to the amount due, plaintiff repaid to defendant his pro rata share, as required by the agreement. Plaintiff also paid all installments of interest to and including July 2, 1914. Taxes for the year 1914-15 became due October, 1914, and were again paid by the defendant. No adjustment or pro rata payment by the plaintiff had been had when the purported rescission took place, on December 29, 1914, nor had the interest on the contract been paid subsequent to July 2d of that year.
After entering into possession of the tract plaintiff, on February 6, 1914, made a quitclaim deed of the property to the Clarabelle Realty Company, and this deed was recorded. Plaintiff also entered into a contract, without the knowledge of defendant, to sell two and one-half acres of the tract to a German, whose name was unknown to defendant. No money was paid on this contract, and the purchaser appears to have never entered into possession. The plaintiff, through the realty company, entered into a written agreement, in escrow, with S. G. and Clara F. Brown, for the purchase of five acres of the real property. Brown entered into possession. No money was paid to defendant under either the contract with the unknown purchaser or with Brown, and neither contract was recorded.
On December 29, 1914, in the evening, after defendant was in bed, plaintiff, accompanied by a Mr. Atthol, called upon the defendant at his residence, near Hayward, and requested defendant to sign a deed conveying sixteen and two-thirds acres of the premises, explaining to defendant that it was in consideration of the five thousand dollars theretofore paid and credited on the purchase price at the time of the execution of the contract. Defendant refused to execute the deed. Thereupon plaintiff tendered to defendant the further sum of three hundred dollars and demanded that he sign a conveyance of a certain one acre of the land to the party Atthol, as provided in the contract. Defendant also refused to accept the three hundred dollars or to execute the conveyance demanded.
The evidence is conflicting as to just what occurred at this meeting. The plaintiff testified that the defendant positively refused to execute any further deeds until the remainder of the purchase price, amounting to twenty-five *641 thousand dollars, had been paid. The defendant testified that he merely explained to the plaintiff that he did not understand the matter, and requested that the execution of the deeds be postponed until the next day, when he could consult his attorney; that his only refusal to comply with plaintiff’s demand occurred when he was pressed by plaintiff to sign the deeds, and finally said, “No, I sign nothing to-night, until I see my lawyer.” While the trial court, with the witnesses before it, was satisfied with, and accepted, plaintiff’s version of the occurrence, and what subsequently transpired, and found that defendant’s conduct amounted to a rescission of the contract, we cannot but feel that there is much in the whole line of action of the plaintiff on the occasion of that visit, and immediately thereafter, which lends vivid color to the contention of the appellant that “the purpose of this visit by Rosenthal and Atthol was to inveigle Mr. Silveira into some sort of a technical default, so as to enable plaintiff and his successors in interest to evade carrying out of the contract of purchase.”
On the very next day following the visit to defendant, at Hayward, plaintiff signed, and sent by a messenger to defendant, who personally received it, a notice of rescission and cancellation of the contract of sale, based on the alleged refusal of defendant to execute deeds for certain portions of the tract, and for false statements and alleged misrepresentations to various prospective purchasers. We pause here to note that nowhere in the record does it appear that any false statements or misrepresentations were ever made by defendant, or by anyone in his behalf, in the premises. The notice was accompanied by a quitclaim, executed by the plaintiff and his wife to defendant and his wife, which deed released and quitclaimed the entire tract. It contained a recital that it was “made for the purpose of releasing all interests of the” makers “by reason of” the contract of sale between the parties. The plaintiff did not in this notice, or at any other time, offer to pay, or tender, to defendant the taxes accrued on the property, and paid by defendant, for the year 1914, or the interest on the contract which accrued after July 2d of that year.
Defendant could not read the documents thus served on him, but within a day and a half, or two days, he handed them to his attorney. The latter, acting for defendant, as *642 quickly as he could ascertain the proper address, returned the quitclaim deed to plaintiff. This was on January 4, 1915, and but five days after its receipt by defendant. In a letter accompanying the returned deed, defendant, through his attorney, denied refusing to execute any deeds, and the making of any false statements concerning the matters at issue, and stated his willingness to comply with the terms, covenants, and conditions mentioned in the contract of sale, and demanded payment of the unpaid interest, amounting to $750, and settlement for the taxes as therein provided. He offered further to make a deed to plaintiff of all the property covered by the contract upon being paid the full amount of the purchase price. Plaintiff had, however, immediately after executing the quitclaim deed, brought this action for rescission, and return of the amounts paid, alleging the delivery of the deed to defendant, of which fact his attorney notified the attorney for defendant, inclosing the deed, and refusing to entertain its return to plaintiff. Defendant’s attorney offered in reply to hold the quitclaim deed for Rosenthal, but that offer was refused, plaintiff’s counsel stating that the return was absolute and that the action would be tried as the facts existed at the t-ime it was filed. There the matter rested.
Again, there is nothing in the record by which it may be determined that the party, whose name is unknown, but referred to as the “German,” had no right or title in the property, as vendee of the Clarabelle Realty Company.
As before stated, on February 6, 1914, plaintiff made a quitclaim deed of the property in question to the Clarabelle Realty Company, which deed was duly recorded in the office of the county recorder of Alameda County.
*646
*647 In yet another particular the finding of the court, as to full performance of the contract by the plaintiff, is not sustained. As the contract did not provide when the semi-annual payment of interest should he made, it was payable at the end of each semi-annual rest. Plaintiff paid his interest in full to July 2, 1914. Consequently, when, on December 30th of that year, he served his notice of rescission and cancellation and the quitclaim deed, interest on the contract had •accrued for the entire period of six months, less four days. When the action to recover the amount of the purchase price paid and to rescind the contract was commenced, the interest for the six months last preceding, amounting to the sum of $750, was due.
Respondent seeks to avoid the issue of failure to pay, or tender the amount of the taxes, and interest, by reliance upon the fact that when he produced, and tendered, the three hundred dollars for the Atthol deed, defendant made no objection, either to the amount of the tender or to the form of the offer, and that no objection was made to the quitclaim deed or to the offer of rescission. As defendant very promptly returned the deed (although it was remailed to his attorney after suit brought), and as promptly made a counter- demand for the payment of the unpaid taxes and interest, we are not impressed with plaintiff’s argument.
We see nothing in the record of this case which will warrant us in holding that plaintiff was in any manner excused, or released, from the full performaee of the obligations imposed on him by the terms of the severable contract of sale. The effort of plaintiff to rescind the contract just before the semi-annual payment of interest became due, and after his pro rata of taxes was past due, coupled with his personal activity in securing from' the Browns a release from their contract on which they had paid a considerable amount, and with which they do not appear to have been dissatisfied, taken in connection with all the facts and circumstances surrounding the attempt to *648 secure the execution by the illiterate defendant of the two deeds on the evening of December 30th, followed, as it was, by the precipitous haste in tendering the quitclaim deed and the immediate filing of' the action in rescission—all these matters are to us indicia that defendant’s characterization of plaintiff’s action was correct, and that he is not in court with hands so clean, or intention so far removed from guile, as to entitle him, on the showing made, to the judgment he has secured. We find nothing in the record indicating a rescission of the contract of sale by mutual consent of the parties, and the plaintiff has not shown equitable grounds entitling him to such right in equity. (Glock v. Howard, supra.)
Other matters are called to our attention on this appeal, but in view of the conclusion reached, we do not deem them worthy of consideration.
The judgment is reversed.
Richards, J., and Kerrigan, J., concurred.
A petition to have the cause heard in the supreme court, after judgment in the district court of appeal, was denied by the supreme court on October 9, 1919.
All the Justices concurred, except Olney, J., who was absent.
Reference
- Full Case Name
- CERF ROSENTHAL, Respondent, v. JOSEPH C. SILVEIRA, Appellant
- Cited By
- 4 cases
- Status
- Published