Baker v. Salter

VALLÉE, J. Appeal by defendant Fred R. Salter from a judgment for plaintiff, against said defendant only, in an action to recover the balance of the purchase price of street improvement bonds sold and delivered by plaintiff’s intestate, referred to as Baker, to Salter. Salter died after the entry of the judgment, and the administratrix of his estate was substituted in his place.

In conformity with the allegations of the complaint the trial court found that in the month of August, 1944, Baker and Salter entered into an agreement wherein and whereby Baker agreed to sell to Salter, and Salter agreed to purchase from Baker, bonds of the par value of $61,326.77 to be issued under County Improvement District No. 1089 of the County of Los Angeles, as, if, and when the same were issued, and that Salter promised and agreed to pay Baker therefor the par value thereof; that the bonds were delivered to Salter on September 7, 1945, and he paid on account thereof $58,260.43 leaving an unpaid balance of $3,066.34, for which judgment was entered in favor of Baker’s intestate.

The sole question for decision is whether there is any evidence to support the finding that the price agreed to be paid for the bonds was the par value thereof. Appellant claims that the finding is unsupported by the evidence.

Salter testified that in August, 1944, he agreed to purchase the bonds from Baker and to pay therefor the par value thereof. He also testified that on August 22, 1945, he sent a letter to Baker with respect to the bonds. The letter is in evidence. It confirms that the agreement was to pay par for the bonds. The bonds of the par value of $61,326.77 were delivered to Salter on September 7, 1945, by a bank pursuant to directions of Baker. Salter paid the bank $58,240.43, which was 95 per cent of the par value of the bonds, at the time of their delivery for the account of Baker. Baker had purchased the bonds from the contractor who had constructed the improvement. He paid the contractor $58,240.43 for them. Baker died September 10,1945. After the delivery of the bonds and prior to the commencement of this action, in a conversation with an attorney for Baker’s intestate in response to the latter’s request for payment of the balance of the purchase price of the bonds, Salter admitted that he was indebted to [41]Baker’s estate for the balance of the purchase price and that he intended to pay the money due. Also, after the delivery of the bonds, Salter, in effect, told an underwriter of improvement bonds that there was a balance due on the bonds he had purchased from Baker. Salter admitted the conversation with the underwriter and testified that he (Salter) had told him that he had not paid Baker’s estate because he had incurred interest as a result of delay in the delivery of the bonds. The foregoing evidence supports the finding that the purchase price agreed to be paid by Salter was the par value of the bonds.