Haley v. Bloomquist

THE COURT.

As stated by us in the memorandum of opinion in action L. A. No. 10253,

Bloomquist

v.

Haley, ante,

p. 251 [268 Pac. 367], this day filed, we are in full accord with the opinion of the district court of appeal in and for the second appellate district, second division, written by Mr. Justice Craig, in this action, and we adopt the same as the opinion of this court, which said opinion reads as follows:

“Pursuant to stipulation three appeals in suits between the same parties and involving interrelated matters have been herein briefed together. The one which will be the subject of this decision is designated in the complaint as an action for money, in which I. M. Haley and T. E. Haley, husband and wife, are plaintiffs, and A. Bloomquist and his wife, Hattie Bloomquist, are defendants.

“The following statement of facts is intended to suffice in that regard for the decision of all three appeals: On January 31, 1923, A. Bloomquist and Hattie Bloomquist owned a certain hotel in the city of Los Angeles, known as the St. George. On that day they leased it to Jack Zeller for the period of ten years, at a rental of $1,150 per month. As a part of the transaction Zeller executed his promissory note for a total rental amounting to $138,000, and as security therefor gave a chattel mortgage on the furniture and lease; he also purchased from the Bloomquists the furniture' and furnishings of the hotel, and gave his promissory note for

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$24,500, payable in installments of $500 per month. This note was also secured by a chattel mortgage on the furniture and furnishings. Later, Zeller assigned both his interest in the furniture and in the lease to I. M. Haley, the appellant in these cases, who assumed the obligations of his assignor, to make the payments above mentioned. Haley paid installments on the furniture only until January, and the rent until May, 1926. On February 11, 1926, appellant held a public auction to sell the furniture and furnishings and lease of the hotel.

“At this point the parties disagree as to what took place. Appellants’ contention is that Bloomquist bid $19,000 at the sale and became the purchaser. Respondent A. Bloomquist insists that he permitted the auctioneer to announce him as bidder and purchaser merely to prevent the property being sold too cheaply, and that it was understood between the parties that he was not required to take the property, and was not in fact to be regarded as buying it, and claims that he had no intention of doing so. There is evidence that respondent A. Bloomquist first authorized a bid of $17,000; someone else bid $18,000; the auctioneer then importuned Bloomquist to bid $19,000, which he refused to do; after that the auctioneer announced that Bloomquist had offered $19,000, at the same time stating privately that he need not take the property. However, Bloomquist signed the customary certificate of sale. Thereafter, on a number of occasions, Haley demanded of Bloomquist and of Hattie Bloomquist the payment of the $19,000, after deducting therefrom the amounts then due on the furniture. The Bloomquists at all these times refused to comply with the demands. After May, 1926, Haley refused to pay further rent, but continued to occupy the premises. As before stated, the Bloomquists did not pay as demanded,