Defendant grape buyers sought review of a judgment from the Superior Court of Fresno County (California), which held in favor of plaintiff grape sellers in their action to recover on two alleged contracts regarding the sale of certain carloads of grapes.
The sellers and the buyers entered into a contract for the sale of carloads of grapes. The sellers filed an action to recover sums due under the contract. The first count of the sellers' complaint was a common count for goods sold and delivered for a reasonable value. After the buyers answered, the sellers were permitted to amend their pleading to add the agreed value of the grapes instead of the reasonable value. In the second count, the sellers sought to recover damages for the breach of the agreement to buy two carloads of grapes. The buyers alleged that the grapes sold to them were to be sold on consignment. At trial, evidence was presented that the grapes were delivered to the buyers, that the buyers' check was sent to the sellers, that the sellers returned the check, that the bill of lading was returned to the sellers, and that the grapes were resold at a private sale to a third party. The trial court held in favor of the sellers, and the buyers sought review. The court determined that the sellers properly amended their first count. The court also determined that the admission of the amount that the sellers received from the sale to the third party was prejudicial error.
Outcome: gross negligence California
The court reversed the judgment awarded to the sellers on their first count against an individual working for the buyers, but affirmed the judgment on the first count against the buyers. The court reversed the judgment awarded to the sellers on their second count.
Appellant lessee oil company sought review of the decision of the Superior Court of Kern County (California), which entered judgment for respondent lessors of property in lessors' action for ejectment against the lessee
The lessee had leased property from the lessors for oil and gas purposes. The court affirmed the decision finding that the lessee had failed to comply with the drilling requirements of the lease to drill nine wells. Only two wells had been drilled over a five-year period. Although the court found that the lessors had waived performance of the conditions of the lease requiring the commencement of drilling operations within 30 days and that an additional well be commenced within 90 days by acceptance of the royalties, there was a continuing covenant to carry on drilling operations with due diligence until there were nine producing wells. Thus, because this continuing covenant existed, the acceptance of royalties was not a waiver of future breaches of the lease. The lessors had a right to declare forfeiture of the lease when the lessee failed to cure the defaults within 30 days after receiving notice and resuming drilling operations.
The court affirmed the judgment for the lessors in their ejectment action.