Gibson v. River Farms Co.

PULLEN, P. J. This is an appeal by an intervening bondholder from a judgment in an action to quiet title to some 13,000 acres of land, divided in 29 separate tracts lying within the boundaries of Reclamation District 108 and assessed to River Farms Company of California, a corporation. Reclamation District 108 comprises approximately 57,000 acres lying principally in Colusa County, but with a part in the county of Yolo.

Assessment No. 5 of Reclamation District 108, amounting to some $3,407,000, was, in 1923, duly levied upon all the lands in the district, including the 29 parcels here in controversy. Thereafter, and after certain payments were made, bonds in the amount of approximately $3,142,000 were issued. Prior to the call of October 1, 1931, hereafter referred to, landowners had delivered to the county treasurer, for cancellation in reduction of the lien upon these lands, bonds in the sum of $11,000, leaving outstanding on assessment No. 5, $3,131,000. Of this amount, intervener and appellant Mary E. Morris is the owner of some $300,000, and intervener Cooper and his committee represent approximately $640,000.

On October 1, 1931, California Gibson, as county treasurer, issued a call for an amount necessary to pay the instalment of interest due January 1, 1932. Defendant herein, with others, failed to make their payments as required by this call and the county treasurer published a notice of the amount of the delinquency and other particulars required by law, and further gave notice that unless paid each parcel would, on December 29, 1931, be sold to pay such delinquent in[760]stalment. No payment having been made by that date, the county treasurer offered this property of the River Farms for sale. No bids were made and it was, as provided by law, sold by California Gibson, as treasurer, to California Gibson, a trustee for the district.

It was by virtue of this sale that plaintiff, California Gibson, claiming, as trustee, to be the owner of these lands, brought this suit to quiet title.

To the complaint, the River Farms Company of California filed an answer, setting up various defects in the proceedings taken to enforce the collection of the amount due upon the bonds, and asserted the deed was invalid, and asked the court to adjudge that River Farms Company was still the owner of the lands involved.

Thereupon Cooper and his committee intervened in behalf of the trustee, as did also Mary E. Morris, both claiming defendant was estopped to question the illegality of the proceedings on the sale, and that if title were not upheld in the trustee the security for the bonds would be impaired; but also prayed that if the court should determine the defendant was entitled to any relief, then the granting of such relief shall be upon the condition that defendants do equity by paying all calls with interest and penalties.