Bradley Co. v. Ridgeway

JENNINGS, J. The Bradley Company was plaintiff in an action in which petitioner Guy Knupp and others were defendants. The amended complaint contained three causes of action. The action related to certain bonds issued by the city treasurer of the city of Porterville pursuant [633]to contracts entered into between the board of trustees of said city and the defendant Federal Construction Company for the improvement of certain streets in said city. The contracts were executed and the bonds representing assessments levied against real property to meet the expense of the improvement were issued under the provisions of the Improvement Act of 1911. The bonds which formed the basis of plaintiff’s complaint constituted a lien against certain described real property which plaintiff alleged that it owned. It was alleged in the amended complaint that prior to the issuance of the bonds the defendant Federal Construction Company had made a compromise agreement Avith certain owners of property in the city of Porterville Avhereby the company agreed to accept in full satisfaction and discharge of its claims for performing the street improvement work an amount which was 25 per cent less than the original contract price, but that nevertheless bonds providing for payment of the full amount of the contract price were issued and that bonds representing 25 per cent of said amount were delivered to Knupp. The third cause of action in particular alleged that no payments either of principal or interest had been made by plaintiff on the bonds and that the collection of any amount which had become due either as principal or interest on the bonds prior to January 1, 1930, was barred by the statute of limitations. The prayer of the amended complaint was, first, that the rights and duties of plaintiff and defendants with respect to the bonds be declared; second, that it be declared that the bonds constitute no lien against plaintiff’s real property and may be avoided by plaintiff;. third, that defendants be required to set forth the nature of their several claims and that all adverse claims of defendants be determined by decree of court whereby it shall be adjudged that plaintiff is the owner of the real property affected by the bonds and that defendants have no estate or interest in said property and that defendants be debarred from making any adverse claim to said property.

To this amended complaint the defendant Guy Knupp interposed a general demurrer which was sustained as to the first and second causes of action set out in the pleading and overruled as to the third. Knupp then filed an ansAver wherein he disclaimed any right, title or interest