Wilson v. Coffey

STURTEVANT, J.

On October 5, 1923, the plaintiff entered into a contract with the defendant Coffey to sell him certain land located in Los Angeles County at an agreed price of $35,000. By the terms of the contract $15,000 was to be paid in cash upon delivery of a grant deed together with a certificate showing good title and the balance of the purchase price was to be secured by defendant by executing a second mortgage upon the land. It was agreed that plaintiff and defendant would enter into an escrow for the execution of said agreement and that they would make the Title Insurance and Trust Company their escrow-holder for the purpose of carrying out the terms of their contract. It was further agreed that plaintiff would deposit with said title company a deed conveying said lands to the defendant and that said defendant would deposit with said company at once the sum of $5,000.

[637]

Accordingly the defendant on the fifth day of October, 1923, paid to and deposited with said title company the sum of $5,000 as payment to plaintiff upon the purchase price of said property. At about the same time plaintiff deposited with said title company for said defendant a deed duly executed in full compliance with the terms of said contract and said escrow instructions and was ready, able, and willing to furnish the necessary certificate of title.

Thereafter a controversy arose between the parties and the plaintiff commenced an action in the Superior Court of Los Angeles County to require the defendant to perform his contract and to cause said title company to pay to him the said $5,000 deposited with it by said defendant. The title company was joined in said action as a defendant and filed an answer. The defendant Coffey also filed an answer. When the action came on for trial the parties entered into a stipulation as follows: “It is hereby stipulated in open court by all parties to this action through their respective counsel that the defendant and cross-complainant, Title Insurance and Trust Company, deposit in court the funds, to-wit the sum of $5,000 and a deed running from Alden C. Wilson and wife to Charles H. Coffey and wife in connection with escrow transaction No. 705303 of the Title Insurance and Trust Company, said transaction being between the plaintiff Alden C. Wilson and the defendant Charles H. Coffey and that upon certain deposits being made this court may make an order dismissing this defendant and cross-complainant, the Title Insurance and Trust Company, from this action and discharging this defendant and cross-complainant, the Title Insurance and Trust Company, from liability to each of the conflicting claimants, Alden C. Wilson and Charles H. Coffey, said deposit to be subject to the order of the court.”