Wright v. Barney Cornett Potatoes, Inc.

BARNARD, P. J. The plaintiff has appealed from a judgment dismissing the action as against the. corporate defendant.

The appellant entered into an agreement dated August 2, 1948, by which he agreed to lease 160 acres of land in Kern County to H. J. Hiett for the term of five years. The agreement is in the form of a letter written by Wright to Hiett, with an acceptance signed by Hiett. The letter referred to a conversation in which Hiett had told Wright that this land could be leveled and a water well developed, thereby turning [234]it into a farm on which crops could be raised. Wright then stated that farming was not his business; that his time was fully taken up in his own line of endeavor; that he did not know whether the land could be leveled or whether water could be developed; that he was not willing to gamble money on the possibility that this could be done; and that if Hiett was willing to gamble on these conditions he would prefer to loan Hiett the money to carry on the work, and take Hiett’s note for all monies thus loaned. He then stated the terms under which he would lease the property. So far as material here, these terms were as follows:

1. ‘ ‘ That you will pay undersigned the one fifth part of the gross of all crops so raised, until all the notes are paid including the interest thereon.”

2. “I would require a yearly rental of the land as such, of $2.00 per acre which you are to pay regardless of production, because you may fail to produce anything, however if you are successful in raising a crop the rental will be included in the said one fifth, thus the one fifth would first pay the lease rental, next the accumulated interest and the balance would apply on the principal.”

3. “In event the earnings by crops on the land are sufficient, that the said one fifth gross will have paid all the notes for the money so loaned before the termination of the lease, you will continue to pay to undersigned the same one fifth ratio of production. ’ ’

The plaintiff brought this action in conversion against Barney Cornett Potatoes, Inc., a corporation, and H. J. Hiett. The original complaint alleged the making of the agreement, which was attached thereto and incorporated therein by reference ; that Hiett raised a crop of potatoes on this land which was harvested in June and July, 1949; that the respondent corporation sold this crop subsequent to its harvest; that the respondent should have known of the agreement between the appellant and Hiett; that the gross value of the crop exceeded $30,000; that $2,224.91 had been paid the appellant by the respondent; that the remainder of appellant’s share in said crop was converted to its own use by the respondent; and that the value of this remainder is $3,775.00.