Bailey v. John W. Sward, Inc. (1920) · DecisionDepot

Bailey v. John W. Sward, Inc.

Name: California Superior Court Tentative Rulings
Creator: DecisionDepot
License: https://creativecommons.org/licenses/by-nc/4.0/

California Supreme Court Nov 22, 1920 No. L. A. No. 5162.Published

Before: Shaw

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Holding. The court held that the cropping contract did not create a lien or pledge on the lessor's share of the crop in favor of the lessees, and therefore the lessees had no right to withhold the lessor's share of the crop from the mortgagee.

Issues

Whether the lessees' right to hold a portion of the crop as repayment for advances was paramount to the rights of the mortgagee.
Whether the lease agreement created a lien or pledge on the lessor's share of the crop in favor of the lessees.

Disposition. affirmed

Quotations verified verbatim against the opinion

“There is nothing in the lease which purports to create a lien on or pledge of that portion of the crop in favor of Chin Sam & Company against Sward Company.”

“It was a promise to pay, not a pledge.”

“the possession of Chin Sam & Company prior to that time was merely as bailee and not as pledgee, and it gave them no right to withhold the rice as against the holder of said mortgage.”

Synopsis

The facts are stated in the opinion of the court.

SHAW, J.

The defendants, Chin Sam & Company, appeal from a judgment for the plaintiff.

The action was to foreclose a chattel mortgage executed by John W. Sward, Incorporated, to Dana Burks and afterward assigned to the plaintiff, covering the rice crop grown on certain three hundred acres of land by Chin Sam & Company in the year 1915.

The case presents the question whether the right of Chin Sam & Company, a copartnership, to hold one-third of said crop as payment for money advanced by Chin Sam & Company to Sward Company was paramount to the right of the mortgagee of said part of the crop.

The crop was grown by Chin Sam

Company under an instrument denominated a lease, dated January 14, 1915, executed by Sward Company to Chin Sam & Company. It provided that Chin Sam & Company should have the land during the cropping season of 1914 for the purpose of raising and growing a crop of rice thereon. Sward Company was to plow and check the land, build the necessary irrigation ditches, furnish the lumber necessary to build a barn, house, and cook-house, and for weirs and boxes for irrigating ditches, and survey the land. Chin Sam & Company were to put in the necessary weirs and boxes for irrigation, sow and plant the land to rice, irrigate and cultivate the same in a proper manner, and, when ripe, harvest, thresh, and sack the same. The solution of the question depends upon the effect of the following provisions:

“It is hereby mutually agreed that when all of the foregoing provisions have been kept and performed by [Chin

[397]

Sam & Company] as herein provided, they shall be entitled to receive two-thirds of the crop so threshed, the same to be divided between the parties hereto in the field [Sward Company] taking one-third of the entire crop in the field, [Chin Sam & Company] taking the remaining two-thirds, the title to the whole crop being and remaining in [Sward Company] until division is made; the one-third retained by [Sward Company] shall be its rental share, for the use and occupation of said premises by [Chin Sam

Bailey v. John W. Sward, Inc.

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Synopsis

SHAW, J.

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