Bravo v. Sharkey

PEEK, J.

This is an action by plaintiffs to quiet title to certain real property. In addition to the usual averments it was alleged that plaintiffs and defendants had previously entered into an agreement which “contemplated” the execution of a lease to the defendants of the property in question; that defendants by their acts abandoned and rescinded said agreement; that defendants have refused to deliver up said agreement for cancellation and that they threaten to place the same on record.

The defendants’ answer denied generally the averments of plaintiffs’ complaint but admitted the execution of the agreement which they alleged to be in full force and effect and under which they had acquired a valuable interest in said real property. By a separate cross-complaint defendants alleged that in reliance upon said agreement they had expended large sums of money and had fully performed their part of said agreement and that as a result of plaintiffs’ failure to perform they had suffered substantial loss for which they prayed judgment.

At the outset of the trial, which was- before the court sitting without a jury, it was stipulated that the property was owned in fee by plaintiffs and that if the court should find against defendants on their cross-complaint, a decree quieting plaintiffs’ title should be entered.

Pursuant to said stipulation the cause proceeded to trial and at the conclusion thereof plaintiffs’ motion for a non-suit was granted. Defendants have now appealed from the judgment accordingly entered on the grounds that (1) the lease entered into between the parties was a present binding contract notwithstanding that further acts were contemplated, and (2) that the court erred in granting plaintiffs’ motion for nonsuit since there was evidence of substantial compliance on their part.

[885]

An examination of the agreement in question shows that it contains certain preliminary recitals to the effect that plaintiffs are the owners of certain real property situated in the city of Stockton; that defendants, together with “personal business associates” are “desirous” of leasing said property for a stated rental providing plaintiffs “proceed as soon as is reasonably possible to remodel said premises according to plans and specifications to be forthwith prepared by First Parties (plaintiffs) and submitted to and agreed upon by First and Second Parties,” and prepared for occupancy by defendants and their associates, either as individuals or as a corporation to be subsequently formed and that plaintiffs agreed to have plans and specifications immediately prepared embodying details of “remodeling and construction agreed upon” by the parties and to proceed with such work of “remodeling and leasing” the premises to the defendants and their associates.