Waters v. Waters

GRIFFIN, P. J.

Defendant-appellant obtained a divorce from plaintiff-respondent in 1948. In a property settlement agreement, the wife received a life estate in two separate parcels of land, referred to as the C Street property and the Broadway property. The minor child of the parties was given the remainder interest in the properties. Concurrent therewith, the wife leased both parcels to her husband, plaintiff herein, on a 35-year term basis for a single sum which ultimately became fixed at $275 per month for both parcels. The lessee agreed to pay all taxes and certain other charges. Plaintiff herein subleased the parcels separately, receiving $400 for the C Street property and $600 for the Broadway property, totaling $1,000 per month.

In 1958, the State of California commenced proceedings to condemn the C Street property for highway purposes. Each of the parties, by mutual agreement, employed separate attorneys to defend the action and to secure the greatest amount possible for the property and the leasehold interest. Negotiations were carried on between the respective parties, respective counsel and the State of California in reference to a settlement. On May 2, 1958, counsel for Mrs. Waters wrote

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to Henry J. Waters that it would be advisable to make a definite offer to the state and, among other things, said that:

“1. She will agree to a settlement of $65,000.00 or more for the entire lot and building, provided you agree with her that the entire award will be split equally between Mrs. Waters as owner and you as lessee and that settlement is made within the next thirty days.

“2. The lease will be modified or amended after the State takes the one lot to provide for a rental for the remaining lot of two-thirds of the existing rental, or the sum of $183.33 per month, based on the present rentals you are getting for the two lots.

“Approved:

“Doris Waters”

It does not appear that Mr. Waters directly replied to this communication. On June 12, 1958, Mr. Dowds, the wife’s attorney, wrote to the husband’s attorney, Mr. Focht, about preparation for trial of the condemnation proceedings. Therein he stated: “Since Mr. Waters has been calling and writing to me directly, I wrote him a letter on May 2 agreeing to accept his offer of a fifty-fifty split on the award between him and Mrs. Waters and her son, but have had no confirmation thereof since that date. ’ ’