International Oil & Metal Corp. v. State of California

California Court of Appeal Jun 12, 1962 No. Civ. 10416Published

Before: Schottky

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Holding. The court held that the State of California was a bona fide purchaser for value without notice of the appellant's interest in the property, justifying the grant of summary judgment in the State's favor.

Issues

Whether the State of California established it was a bona fide purchaser for value without notice of the appellant's interest in the real property.
Whether the appellant's failure to file counter-affidavits in response to the State's motion for summary judgment warranted the entry of judgment for the State.

Disposition. affirmed

Quotations verified verbatim against the opinion

“The state to prevail must show it is a bona fide purchaser for value without notice.”

SCHOTTKY, J.

International Oil and Metal Corporation, a Delaware corporation, has appealed from a judgment entered in favor of the State of California after the latter’s motion for summary judgment was granted.

Alabama-California Gold Mine Company, a Washington corporation, prior to May 24, 1955, was the owner and the record title holder of real property in Placer County. On May 24th Alabama and International entered into a merger agreement. On September 19th the merger was consummated, with International the surviving corporation, Certificates of

[567]

merger were filed in Washington and Delaware in June 1956.

In 1957 Alabama executed a grant deed to the property to the State of California. This deed was signed by Bryce Little, president of Alabama at the time of the merger, and Calvin C. Hunziker, secretary. The State of California recorded the deed in Placer County on January 24, 1958. International filed the certificate of merger in Placer County on July 14, 1959. It then brought this action to recover for the alleged taking of its property. The state made a motion for summary judgment which was granted. The action was dismissed and this appeal followed.

The affidavits filed by the state in support of the motion stated:

(1) That the files of the Department of Public Works show that on or before February 3, 1958, a draft in the amount of $6,150.67 was forwarded to Alabama-California Gold Mines Company “and [sic] full compensation for the parcels involved. ...”

(2) That the right of way agent who negotiated for the property had no notice that International had any claim of ownership of the property; that his investigation showed that Alabama was the owner; that he communicated with Alabama for the purchase of the property; that the right of way contract was returned, as was a grant deed signed by Bryce Little as president of Alabama and Calvin C. Hunziker as secretary of Alabama, which was later recorded.

(3) That according to the records of Placer County as of January 24, 1958, Alabama was the record owner of the property.

International Oil & Metal Corp. v. State of California

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SCHOTTKY, J.

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