Wade v. Diamond a Cattle Co.

Opinion

WHYTE, J.

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Action for money due in three counts involving three separate transactions for the purchase, feeding and fattening, and resale of cattle. Plaintiff is a medical doctor who maintained a ranch in the Coachella area. Defendant, operating as Diamond A Cattle Company, conducted a feed yard on its own account and as agent and factor purchased, fed and fattened, and resold cattle for the account of its principals including plaintiff. Operating under the name of its

alter

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Coachella Valley Finance Company defendant also financed its customers’ purchases up to 75 percent of the purchase price. The amount so financed with interest was deducted from the sales price at the time of resale.

Counts two and three involve transactions covering respectively 147 head of cattle purchased for the account of plaintiff on June 9, 1969, and 145 head of cattle purchased for the account of plaintiff on July 7, 1969. There is no dispute regarding these contracts. Defendant admitted it owed plaintiff $2,664.68 under count two and $6,751.35 under count three.

In count one plaintiff alleged that sometime prior to July 30, 1969,. defendant orally agreed to purchase 1,051 head of cattle for plaintiff’s account and that on July 30, 1969, a written agreement was entered into for the financing of said purchase as follows: 1,051 head at $27 cwt—total cost $207,772; equity payment by plaintiff $51,943; financed by defendant $155,829. Plaintiff claimed said cattle resold at a net profit to plaintiff of $2,030.15 making a total due plaintiff from the proceeds of such resale of $53,973.15 of which he received an advance of $40,000 on Februaiy 20, 1970, leaving a balance due him of $13,973.15.

[456]

By answer and cross-complaint defendant denied the existence of an oral contract but alleged that instead there was a written contract dated June 20, 1969, whereby defendant sold to plaintiff 1,000 head of cattle which it owned at $33 cwt. Subsequently an additional 51 head were orally added to this purchase at the same price. Defendant admits the execution of a financing contract for $155,829.