S.E.P. Associates, Inc. v. Peto

Opinion

HASTINGS, J.

Defendants and appellants George and Connie Peto (Petos) appeal from a judgment entered pursuant to a written stipulation in an action on a promissory note.

Plaintiff and respondent S.E.P. Associates, Inc. brought an action against appellants to enforce the collection of a promissory note dated May 12, 1972. Respondent also alleged a security interest in an Arabian horse owned by appellants. On September 19, 1973, just prior to trial, defendants’ counsel announced to the court that a settlement had been

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reached and requested a stipulated judgment. Thereafter, a stipulation for judgment was signed by counsel for both parties and filed with the court on October 4, 1973, the substance of which is as follows:

“Plaintiff and defendants shall have six months to sell the horse known as Royal Coumar. If said horse is sold within six months from September 19, 1973, plaintiff shall receive the first $7,000 of the proceeds from the sale of said horse, plus one-half of any excess over and above $7,000, and defendants shall receive one-half of any excess over and above $7,000.

“If said horse is not sold on or before March 19, 1974, plaintiff shall have judgment for the sum of $7,000, plus interest at the rate of 7% per annum from September 19, 1973.

“Defendants may remove the horse from its present location and take same to horse shows for the purpose of sale, but defendants shall notify plaintiff’s agent prior thereto.

“Upon the sale of said horse for a net minimum amount of $7,000 or more, the proceeds thereof shall be paid to either the attorneys for plaintiff or the attorneys for defendants’ trust fund account for distribution by either of said firm of attorneys pursuant to the above stipulation.”

Without any further proceedings, judgment was entered on April 15, 1974. Respondents then levied execution upon appellants and the Sheriff of Los Angeles County sold three horses belonging to appellants, including the horse named in the stipulation for judgment.