McDonald v. Gravenstein Apple Growers Cooperative Ass'n

TUTTLE, J. Plaintiff commenced an action to recover the sum of $159.66 from respondents. The latter filed a cross-complaint for $586.24. After trial by the court, findings were made in favor of defendants upon all the issues raised in the cross-complaint, and judgment was entered in their favor for the amount demanded. Plaintiff now appeals from the judgment.

Plaintiff was, during all the times herein mentioned, the owner of a ranch consisting of some thirty acres of bearing apple trees. On February 10, 1937, he leased the property to one Edward King, upon a share rental basis. Shortly thereafter King entered into negotiations with respondent Association for the purpose of securing an agency to handle his coming crop. He was told by the latter that they would not enter into a marketing contract with him unless appellant executed and signed it. This was explained to appellant, and he thereupon executed the contract as one of the parties of [331]the second part, King being the other. The agreement was in the following language:

“This agreement, made this 4th day of March, 1937, by

and between Gravenstein Apple Growers Cooperative Association of Sonoma County, a corporation, hereinafter called first party, and J. G. McDonald and Edward E. King, hereinafter called second party,

“WITNESSETH:

“1. That said second party hereby agrees to sell exclusively to or through the first party, or any facilities to be created by first party, all of the apples raised and produced during the period of 15 years from and after the date hereof on that certain property situate in the County of Sonoma, State of California, more particularly described as follows:

“30 acres Gravenstein apples located 1—1/2 west of Sebastopol—estimated lugs 8000—10,000 including 1 acres of Late Apples—J. G. McDonald to receive % and Ed King %—All spray materials except fertilizer y% to come out of Ed King’s part. . . .

“4. It is agreed that said first party may sell or re-sell the apples delivered to it by second party with or without taking title thereto, and pay over to second party the resale price after deducting all necessary selling, overhead and other costs, expenses, and deductions provided for in the by-laws of said first party. . . .

“5. It is further agreed that this contract shall constitute a lien upon all of said apples for the repayment to first party of any and all advances made to said second party, or which shall be made to said second party, and that any and all of such advances may be withheld by first party from the proceeds of such apples. . . .