Slavin v. Argood

WHITE, J. Defendants, husband and wife, have appealed from a judgment against them, in an action tried before the court without a jury, for the balance due under the terms of a written agreement. In the agreement defendants are described as “First Party,” plaintiff as “Third Party,” Pacific Linen Supply Company, a corporation, as “Second Party,” and Attorney George Appel, who acted as a trustee, as “Fourth Party.” The agreement, so far as here pertinent, provided as follows:

“Whereas, Frank Argood, one of the First Parties, is indebted to said Third Party in the sum of Eight Thousand Seven Hundred Fifty-Seven and Ninety-eight/100 Dollars ($8,757.98), and agrees to repay the same, with interest thereon at the rate of five per cent (5) per annum, payable monthly, in the manner and at the times hereinafter mentioned, AND

“Whereas, Mina Argood, his wife, is cognizant of the terms and conditions hereof, hereby voluntarily executes this agreement as one of the First Parties; and

“Whereas, the First Party did procure for said Second Party certain contracts for the laundering of linen and other articles of apparel for the Service Army Camps in the vicinity of Los Angeles, California, and said contracts have become, and are now, valuable property rights;

“Now, Therefore, in order to secure said Third Party the amount which is due him, the parties hereto agree as follows, to-wit:

“The said First Party does hereby set over, transfer and assign unto Fourth Party as Trustee for the Third Party, Three and one-half Per Cent (3%%) of the entire net proceeds of the Second Party, derived from all sources of income, and accruing to the First Party from certain contracts with the said Second Party. The First Party covenants and agrees that the said percentage of Three and one-half Per-cent (3%%) shall never be less than One Hundred Dollars ($100.00) per month, plus accrued interest to date of each [612]payment, and that all such payments shall be distributed to the Third Party by the Fourth Party ....

. . In no event, however, shall the monthly payment hereunder be less than the sum of One Hundred Dollars ($100.00), plus accrued interest to date of each payment, and, should said Three and One-half per cent (3%%) of said entire net proceeds be less than One Hundred Dollars ($100.00) in each month, plus accrued interest to date of each payment, said difference shall be made up by said Second Party. . . .