Sunset Oil Co. v. Marshall Oil Co.

California Court of Appeal Nov 12, 1941 No. Civ. 2824Published

Before: Marks

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Holding. The court held that the defendant's claims to the property were invalid because the underlying purchase contract had terminated due to non-payment and the oil lease had been abandoned and forfeited. Furthermore, the court presumed that the plaintiff's title was valid based on the record provided.

Issues

Whether a contract for the sale of real property containing a time-is-of-the-essence clause terminates automatically upon the purchaser's failure to pay installments.
Whether the defendant could claim an interest in the property under an oil lease that was never utilized and was executed by a corporation with suspended powers.
Whether the appellate court must presume that omitted evidence in the record supports the trial court's judgment regarding the plaintiff's title.

Disposition. affirmed

Quotations verified verbatim against the opinion

“Where a contract, like the one we have here, provides that time is its essence and also that the failure of the purchaser to pay any installment, when due, terminates the contract without further action on the part of the seller, the default terminates the contract and nothing need be done by the seller to terminate the purchaser’s rights under it.”

“The evidence here clearly shows an abandonment of the lease by the lessee, assuming that it ever acquired any interest under the lease.”

“Under these circumstances, it affirmatively appearing from the bill of exceptions that there were grantors other than the Marine Refining Corporation, without designating who they were, we are required to presume that the omitted evidence supports the findings and judgment.”

MARKS, J.

Plaintiff instituted this action against Marshall Oil Company (hereinafter called defendant) and others to quiet its title to property in San Diego County. The complaint was in the usual form. Defendant denied that plaintiff was the owner or entitled to the possession of the property and alleged title and the right to possession in itself. The trial court found all facts in favor of the plaintiff and entered judgment in its favor. This appeal followed.

Mary Shields and Ernest Shields are the common source of title of the parties.

Plaintiff claims under the following chain of title: Deed, Mary Shields and Ernest Shields to Josephine W. Shields, dated November 1, 1918, recorded July 24, 1920. Deed, Josephine W. Shields and Robert Shields to Allen H. Rabin, dated'April 17, 1922, and recorded May 1, 1922, the transfer

[718]

being made subject to a contract made November 1, 1918, between Josephine W. Shields and Percy W. Marshall. Deed, Percy W. Marshall and wife to E. A. Bullock, dated October 2, 1924, recorded October 4, 1924. Deed, Allen H. Babin and wife and W. E. Day and wife to Paul W. Sampsell, dated February 15, 1926, recorded February 23, 1926, the transfer being made without certain warranties. Deed, Paul W. Sampsell and wife to Marine Befining Corporation, dated March 11, 1927, the deed being virtually in the form of a quitclaim. Judgment roll in the case of Marine Befining Corporation, Plaintiff, v. E. A. Bullock, Percy W. Marshall, Alice C. Marshall and Marshall Oil Company, (and perhaps others) Defendants.

Lis pendens

in that action recorded October 17, 1929. Commissioner’s certificate of sale from the commissioner named by the court to Marine Befining Corporation, recorded August 4, 1931. Commissioner’s deed to Marine Befining Corporation dated August 10, 1932, recorded on August 22, 1932. Deed, Marine Befining Corporation

and others

to Sunset Oil Company, dated December 29, 1934, recorded December 31, 1934.

Defendant claims under a contract of sale and purchase of the property in question here from Josephine W. Shields to Percy W. Marshall, dated November 1, 1918, recorded July 24, 1920, and assigned to defendant by an instrument dated June 22, 1922, recorded September 4, 1935, and also under an oil lease from Percy W. Marshall to Marshall Oil Company dated June 22, 1920, recorded June 15, 1921.

Sunset Oil Co. v. Marshall Oil Co.

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MARKS, J.

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