Pasteur Realty Corp. v. La Fleur

GRIFFIN, Acting P. J.

The president of plaintiff corporation, Mr. Perón, and his wife, who owned the stock in said plaintiff corporation, sold their New York property. He came to California on March 9th, 1955. In response to an advertisement he contacted defendant Voltaire Realty Company, agent for defendant Harold La Fleur and wife, owners and occupants of the Sands Motel Apartments in Ocean Beach, consisting of 21 units. The agent, with Perón, inspected the premises. Plaintiff offered defendants $120,000 for the property, but this was refused. Perón then offered to pay $122,500. After the agent pictured the possible income and the development of the Mission Bay project, plaintiff’s offer was accepted by defendants on certain specified terms set forth in an agreement to purchase, and in an escrow instruction prepared on March 12, 1955. It was signed by Alain Perón, as president of plaintiff corporation, and by the La Fleurs. Twenty-three thousand dollars was turned over to defendants’ agent, who is still holding it for the La Fleurs. Thereupon, on the arrival of Mrs. Perón in Ocean Beach, and after inspection of the premises and the records, they claimed that the property and its income had been misrepresented to them. Thereafter, they sent the sellers and the Loma Escrow Company notice of rescission of the contract, claiming fraud, false representations, and indicated an offer to restore.

On April 28th, 1955, they instituted this action alleging false representation of income and bay improvements and asked for the return of the documents signed and the money paid. The complaint was later amended setting forth the claimed misrepresentations in more detail. After denial of the allegations of the complaint, by cross-complaint, the La Fleurs sought specific performance of the contract of sale and asked that in the event of the denial of specific performance judgment be entered in their favor for damages in the amount of $35,000, or the right to retain the $23,000 deposit as liquidated damages. During the trial, by stipulation, an

[7]

amendment to the first amended complaint was filed alleging that the Voltaire Realty Company became indebted to plaintiff for $23,000 for money had and received, and judgment was sought against it for that sum. The cross-complaint was amended alleging that plaintiff paid Voltaire Realty Company, as agent for the vendors, $23,000, as part payment for the property; that the sellers became indebted to the agent for $3,750 for commission; that in case of denial of specific performance the sellers should be entitled to retain the $23,000 as damages, and sought an order quieting sellers’ title to said money.