Chernabaeff v. Chernabaeff
Chernabaeff v. Chernabaeff
Opinion of the Court
This is an appeal from a judgment covering the balance of the purchase price for a crop of potatoes. The plaintiff is a farmer and the defendant William Cherna
The plaintiff had 70 acres of growing potatoes. Sixty acres were on land he had rented from the Kern County Land Company, that company to receive as rental one-fifth of the proceeds of the crop raised thereon. On or about May 5, 1944, William telephoned to Joseph at Chicago informing him that he could purchase the plaintiff’s 70-acre crop of potatoes for $300 an acre, a total of $21,000, payable $10,000 down and $11,000 when digging began. After an investigation by his brother Herman, Joseph entered into some sort of a deal to purchase the potatoes, it being agreed that he would advance the $21,000, that William would advance the cost of harvesting, that Joseph would have charge of selling and that they would split the profits. William was given a draft for $10,000 payable to himself which had appended to it “Advance on seventy acres of bulk potatoes as bought from John Chernabaeff to handle jointly by William Chernabaeff and United Produce.” This draft was indorsed by William and given to John. When John received word that it had been paid and on May 11, 1944, he entered into a written contract with William providing for the sale of the potatoes for $21,000 but subject to and with the understanding that one-fifth of the crop on 60 acres belonged to the Kern County Land Company as rental.
Digging of the potatoes began on June 6, 1944. On that day William telephoned to Joseph at Chicago and during the conversation mentioned the crop rental feature. Joseph stated that he did not believe the existence of such a lien or claim and that he had not previously been told of it by anyone. Joseph immediately contacted his brother Herman in Idaho, who wired William demanding an explanation. On June 8, the plaintiff asked his brother William for the remaining $11,000, saying he would stop the digging if it was not paid. William sent him to Robert Belson, who was then Joseph’s agent at Bakersfield, and who was then sick in bed at a hotel. Being told-that the digging would be stopped if the $11,000 was not paid Robert, after being instructed to do so by William, gave the plaintiff a draft for $11,000 marked
The court found that Robert and Herman Belson were agents and employees of Joseph Belson in the operation of the United Produce Company; that on or about Elay 5, 1944, William Chernabaeff and Joseph Belson entered into an agreement whereby they would purchase certain potatoes from the plaintiff for their joint use and benefit; that Joseph would advance $21,000 for said potatoes to be purchased in the name of William; that in pursuance of this agreement, and on instruction of Joseph, Plerman issued a draft for $10,000 to William for the purpose of making the down payment to the plaintiff; that this draft had attached to it the statement "Advance on seventy acres of bulk potatoes as bought from John Chernabaeff to handle jointly by William Chernabaeff and United Produce”; that this draft was indorsed by William and given to the plaintiff and was paid by Joseph; and that on May 11, after the plaintiff found that this draft had been paid, he and William executed a contract between himself as seller and William as buyer, providing for the sale of 70 acres of potatoes, 60 acres of which was subject to a rental due to the Kern County Land Company of one-fifth of the returns from the crop thereon, that this purchase was subject to that lease, that the buyer was to pay $21,000, $10,000 of which had been paid and the balance to be paid when digging commenced, and the buyer was to dig the potatoes at his own cost. It was then found that on June 6, 1944, William commenced to dig the potatoes so sold .by the plaintiff; that on June 8, the plaintiff demanded from William and from Robert, as the agent of Joseph, that payment of the $11,000 be made or that the defendants cease digging the potatoes; that
Briefly stated, appellant’s position is that he had no dealings with the respondent; that the respondent sold this crop to his brother William; that the appellant merely financed William in this deal and entered into a joint adventure with William under which he was to handle the selling of the crop, William was to pay for the cost of harvesting and after the advances and costs were paid they were to divide the profits. In accordance with this theory the appellant contends that the respondent is not entitled to recover from him for three reasons: 1. That the respondent having contracted with one member of a joint adventure cannot hold the other undisclosed member since the contracting member exceeded his authority. 2. That since the respondent knew there were two members of the joint adventure and yet chose to enter into a contract with one of them individually he thereby elected to hold only the one he contracted with and not to obligate the other. 3. That the respondent, in selling the potatoes to his brother William, knew or suspected that William was intending thereby to work a fraud upon the appellant. This last contention is based on the assertion that William intended, by taking the contract in his own name, to be in a position to claim the potatoes for himself if the market went up or to claim that he and Joseph were buying the potatoes if the market went down, as it did in this case. The difficulty with this contention is that there is no evidence in the record of such an intention on the part of William nor any knowledge of any such thing on the part of the respondent.
There is evidence which indicates that the appellant and William were buying this crop together and that .the former was not merely advancing money in order to handle potatoes which William had purchased. William testified that he talked to John early in May; that “I told him if he would give me a chance I would buy them for Joe Belson in Chicago”; that John said he would give him to about May 5, in order to raise $10,000; that he talked to Joseph on long distance and told him he had a chance to buy these potatoes for $21,000, $10,000 down and $11,000 when digging commenced; that he told Belson that on 60 acres they were to get only four-fifths of the potatoes; that Joseph told him to see Herman, who was in Bakersfield; that a few minutes later Herman called him on the telephone and he took him out and showed him the potatoes and told him what Joseph had said; that Herman called Joseph in Chicago and after talking with him gave William a draft for $10,000; and that in his conversation with Joseph they agreed to divide the profit or losses fifty-fifty. Herman Belson testified that William told him that he had talked to Joseph in Chicago; that he was buying 70 acres of potatoes to run through his shed that “Joe Belson and he was to handle in a joint venture”; and that Joseph wanted him to go and look at the potatoes. He then testified that he looked at the field; that “it looked to
Robert Belson testified that he took over Herman’s duties in Bakersfield in May; that he first saw the respondent on June 8; that he was in bed at the time; that John told him he wanted the $11,000 that Bill owed him on the additional finance of the crop for $21,000; that William got hold of him and told him to pay John the $11,000 or John would “stop us from getting the crop”; that he gave John a draft for $11,000; and that on June 11, he discovered that some of the potatoes were being sold to somebody else and told Joseph the same day.
The appellant himself testified that William called him up about May 5 and told him he had tied up or had an option with his brother for 70 acres of potatoes and that he could not go through with the deal unless he could get outside finance; that the deal required $10,000 down and $11,000 when harvesting started; that he replied “It sounds all right” and that he would have Herman look over the deal and if it looked all right “We would go through with it, we would advance him $10,000 on potatoes he had contracted with his brother”; that it was agreed he was to advance $21,000; that William would pay for the harvesting and packing, and “all sales were to be handled by me”; that he called Herman and told him to look into the matter; that Herman did so and called him back and he again also talked to William; that he told Herman to give the check for $10,000 to William, which was done; that he knew nothing about the claim of the Kern County Land Company for rent until June 6; and that he then called Herman who was in Idaho. It appears that Herman sent William a telegram dated June 6, reading; Seems you have difficulty getting full delivery on joint acreage we bought from your brother John. We were given to understand he owned crop no landlord mentioned. Wire me your side story before any drastic action is taken. ’ ’
Not only does some of this testimony, with the reasonable inferences therefrom, justify the conclusion that these potatoes were sold to the appellant and William jointly, but the conduct of the parties strongly supports this conclusion. The respondent first gave his brother time in which to buy them for Belson. The fact that the written contract named only William as the purchaser is not inconsistent with that purpose. The respondent knew when he received the first payment that the money came from the appellant and the notation attached to the draft stated that it was an advance on potatoes bought and to be handled by them jointly. He refused to allow the digging to continue until the second payment was paid and then he permitted them to proceed. The draft he received stated that it was the balance due on 70 acres bought with William.
The conduct of the appellant is even more significant. He admitted that he was told of the rent matter on June 6, and having come to Bakersfield was told on the morning of June 9 that the final payment had been made to the respondent. He not only went on receiving the potatoes but advanced more money for harvesting them and he did not stop payment on the draft until the 13th, two days after he had learned that some of the potatoes had been diverted by William, and after the market had gone down. With full knowledge of the situation he continued to take the potatoes as fast as they were harvested until the respondent finally discovered that payment had been stopped on the draft. If there be any doubt as to his original intention and understanding, a complete
The judgment is affirmed.
Marks, J., and Griffin, J., concurred.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.