Hay v. Hollingsworth
Hay v. Hollingsworth
Opinion of the Court
Plaintiff appeals from a judgment entered for defendants on a directed verdict, and also from an order made denying his motion for a new trial.
In December, 1910, defendant Hollingsworth held an agency agreement with the Keating Estate authorizing him, under certain limitations and restrictions, to dispose of real property belonging to that estate. Defendant Marsh had made a conditional arrangement to purchase some of this property. J. 0. Downing desired to purchase fifty acres of the land which Marsh was endeavoring to secure, and he negotiated with Marsh, with the result that he made a deposit of two thousand five hundred dollars, for which a receipt was issued to him by Hollingsworth in the following words:
“Received of J. 0. Downing the sum of twenty-five hundred (2500) dollars, as a deposit and part of the purchase price, an additional fifteen hundred (1500) dollars to be paid on or before December 14th, 1910, also as a deposit and part of the purchase price of the following described real property situate in the county of Los Angeles, state of California: Being the southeast quarter of lot three (3) as shown on map prepared by W. I. Hollingsworth, said map being of the Keating Estate property, containing fifty (50) acres, a little more or less. Full purchase price of said property to be eleven hundred (1100) dollars per acre, terms of sale one-third *240 (Ys) of the purchase price, including the above mentioned deposits, to be paid on or before January 15th, 1911; balance to be paid in three equal annual payments bearing interest at the rate of six (6) per cent net, payable semi-annually. The Heating Estate agrees to give a good and sufficient deed and certificate of title, showing the title to be free and clear of encumbrance, through the Title Guarantee and Trust Company. Said company to give a declaration of trust covering the above points. The said company to reserve the discretionary power to date the transaction and said deferred payments shall become due in one, two and three years from said time. This deposit is taken subject to the approval of the Keating Estate. If title is not good, this deposit to be returned.
“W. I. Hollingsworth & Co.,
“Per W. I. Hollingsworth,
“Agent.”
Marsh and Downing attached their names to this receipt, under the word “approved,” below the signature of Hollingsworth. It will be noted that the deposit was taken upon the express condition that the sale should be approved by “the Keating Estate.” In passing we may pause to remark that it appeared to be the evident intention, judging from the wording of the instrument, that the approval of the Keating Estate should precede the requirement that more money should be paid by Downing under the terms agreed upon. There is no dispute at all under the evidence but that the Keating Estate refused to approve this sale; that Downing was notified to that effect and it was stated to him that he might have back the two thousand five hundred dollars first deposited. Mr. Hollingsworth in the course of his testimony said: “In the latter part of February or the first of March [1911] Mr. Downing called on me in regard to the matter, and I telephoned for Mr. Marsh to come down to my office and he did. I told him we had tendered the balance of our first payment to the Trust Company and had been refused. Mr. Marsh repeated over, I think, again what I said and told him we had made a strong effort to try and get the contract fulfilled, but had failed. Mr. Marsh told Mr. Downing he
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would be glad to return the two thousand five hundred dollars. Mr. Downing said he didn’t want it. He said he would not take it. I never told Mr. Downing that I had any interest in the purchase which Mr. Marsh was making. I had no interest. I told him Mr. Marsh’s money entirely at the time made the purchase.” At another point in his testimony Mr. Hollingsworth said: “I told Mr. Downing at least two times that he could have his money back at any time he wanted it.” He' said further: “I remember about the 15th of January [1911] we had a talk about the matter. That was the time when he should have completed the first payment, and I said to him, ‘Mr. Downing, I am very much in hopes of carrying this through for you at that time. But you can have your money.’” Without further. stating the evidence, we may again repeat that there was no claim made by either of the defendants that they were ever able to fulfill their contract with Downing. They accepted his deposit of two thousand five hundred dollars conditionally only and the condition never occurred which enabled them to complete the transaction; they notified Downing that they could not complete it. This action was brought in the name of Hay to recover damages for breach of contract by reason of the failure of the defendants to convey. It was alleged that in making the purchase Downing acted as the agent for Hay, Hay being an undisclosed principal. In the prayer of the complaint damages in the sum of twenty-five thousand dollars was first asked for upon the theory that, as borne out by some of the allegations in the complaint, the defendants had not acted in good faith in refusing to carry out the deal, but refused because it was of greater interest to them to take that course. The second item of damage for which recovery was asked—the deposit of two thousand five hundred dollars—was predicated upon a statement of the facts of the transaction, together with this allegation found in the complaint: “That the defendants in this action, since the thirteenth day of December, 1910, have retained the said sum of two thousand five hundred dollars paid by the plaintiff to the defendants, and have not at any time offered to return the said sum, or any part thereof, notwithstanding the fact
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that the said defendants on the twenty-ninth day of March, 1911, refused to carry out any of the terms and conditions of said contract on their part, and the said sum of two thousand five hundred dollars, together with interest thereon from the thirteenth day of December, 1910, is due, owing, and unpaid from the defendants to this plaintiff.” Separate briefs have been filed on behalf of defendants.
A number of additional questions concerned in the controversy are quite elaborately argued in the brief of defendant Hollingsworth. At the outset we agree with the contention of this defendant that no recovery should have been had against him for the deposit money, because Downing’s deal was made with Marsh. The evidence sufficiently shows this to be the case. Downing in his testimony stated that when he paid the two thousand five hundred dollars to Hollingsworth, Hollingsworth stated to him that it was Marsh’s money and that he would give it to him. As our conclusion just announced as to this defendant puts him out of the controversy, it is unnecessary to give particular attention to much of the further argument presented by his brief, although we will notice one or two of the main propositions, as they are matters which apply equally to the co-defendant. Attention has already been called to the fact that this transaction was entered into on the one part by J. O. Downing. The reason that this action was brought in the name of Hay was explained by Downing. Downing testified that while he acted apparently in his own right in making the deal with defendants, he in truth was the attorney in fact for Hay and that it was Hay’s money which he expended and was to expend on account of the purchase of the land. He testified that he was to have had some interest in the returns from the property, but the testimony was clear to the fact that the money expended was Hay’s and that Hay was the principal party entitled to be represented in the transaction.
For the reasons which we have stated, we think that the court was in error in part, in that the jury should have been allowed to find for the plaintiff as against defendant Marsh in the sum of two thousand five hundred dollars. This without interest, because Downing had refused to accept the money at the different times it was offered to him.
The judgment and order are reversed.
Conrey, P. J., and Shaw, J., concurred.
A petition for a rehearing of this cause was denied by the district court of appeal on August 12, 1919; and 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 September 11, 1919.
All the Justices concurred.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.