Majority
On September 20, 1955, plaintiff sued appellant Claretian Theological Seminary and defendant Jacoba Buchenau. The first cause of action for specific performance of a written contract dated August 30, 1955, between plaintiff and the seminary for the sale of an apartment house was directed against the seminary, the second, for damages for interference with contractual relationship against Buchenau, and the third for declaratory relief against both defendants. The seminary in its answer denied it “breached” the contract and “failed or refused to proceed with the sale”; alleged that defendant Buchenau, by asserting title to the property made completion of the sale impossible; reaffirmed the contract; and agreed to complete the same “in the event (the) court so orders.” Mrs. Buchenau in a cross-complaint against both parties asked the court to quiet title to the property. This issue was tried first; the trial court found her claims to be without foundation and ordered title quieted against her. Plaintiff dismissed his second and third cause of action against defendant Buchenau and proceeded to trial on the first and third against the seminary, which then unsuccessfully moved to file a supplemental answer.
Without receiving any evidence at the trial, except the written contract, the lower court by interlocutory judgment ordered the parties to specifically perform the terms of the agreement in accord with certain instructions; provided that if plaintiff failed to comply judgment be entered against him and upon failure of the seminary, plaintiff be permitted to amend his complaint to allege breach of contract and damages; ordered the court upon completion of the sale to take an accounting to determine the net rentals received by the seminary from September 20, 1955, and enter judgment accordingly; and expressly retained jurisdiction to do everything necessary to a final and complete disposition of the obligations and rights
Defendant Buchenau appealed from the judgment quieting title against her which was affirmed and is now final. A second time the seminary moved for final judgment, the lower court denying the motion; and then unsuccessfully moved for leave to file a supplemental answer setting forth “plaintiff’s default” under the agreement. Thereafter, the trial court granted plaintiff’s motion for a final judgment which was entered October 24, 1958; took evidence on the matter of accounting and ordered the parties to specifically perform the contract, crediting $34,011.20 net rentals to plaintiff against the purchase price and allowing the seminary thereon $13,586.95 interest at 7 per cent on the $65,000 cash price from September 20, 1955. Both parties appeal therefrom, the seminary from the entire judgment; the plaintiff from that portion crediting the seminary with interest on the unpaid cash purchase price.
Absent evidence received at the trial, we resort to the pleadings for a recitation of uncontroverted facts. The basis of this cause had its genesis in a written agreement dated August 30, 1955, signed by plaintiff and the seminary, acknowledging receipt of a $5,000 deposit from plaintiff to apply on the purchase price of real property “to be deposited in escrow” at the Hollywood State Bank; and reciting that the seminary agreed to sell to plaintiff a 30-unit apartment house for $65,000 cash and plaintiff’s assumption of a first trust deed in an amount not to exceed $72,000. Immediately prior to the execution of this agreement, plaintiff delivered the $5,000 deposit to a real estate broker, agent of the seminary, who thereupon deposited it with the escrow department of the bank for the purpose of an escrow, where it is still held. Two days after execution of the agreement defendant Buchenau notified the parties and the bank that she was the owner and the seminary had no title thereto. Thereafter, the seminary advised plaintiff it would not proceed with the sale “unless and until the claim of title to the property asserted by the defendant Buchenau is withdrawn” and did not consummate the sale. Plaintiff was nowise in default under the agreement and ready, willing and able to complete the purchase. The within action resulted.
Through its query—whether Lifton v. Harshman, 80 Cal.App.2d 422 [ 182 P.2d 222 ], supports the judgments—appellant contends the trial court erred in awarding plaintiff $34,-011.20 damages on a complaint which neither alleged nor prayed for them.
Manifest in its repeated references to “damages” is appellant’s basic misconception of what this credit actually consists. It is true, as plaintiff argues, that where a vendee is entitled to a decree of specific performance of a contract for the purchase or exchange of land, he is entitled to a judgment for the rents and profits thereon from the time conveyance should have been made (Lifton v. Harshman, 80 Cal.App.2d 422 [ 182 P.2d 222 ]; 90 Cal.App.2d 180 [ 202 P.2d 858 ] ; Heinlen v. Martin, 53 Cal. 321 ; Coleman v. Dawson, 110 Cal.App. 201 [ 294 P. 13 ] ; 45 Cal.Jur.2d, § 83, p. 374; 7 A.L.R.2d 1204 ); and that under this rule no ‘ ‘ damages' ’ as such are awarded, the amount in reality being a form of compensation due the buyer for loss incurred because of the delay in receiving title, which amount may be ordered incident to the judgment of specific performance. This is awarded upon the theory that a court of equity, once it obtains jurisdiction of an action for specific performance, should adjust the rights of the parties and equalize any losses occasioned by the delay by offsetting them with money payments. Confusion in this area has existed because of the informal use of the term “damages” in connection with such an award, but it is settled that such compensation neither constitutes damages as contemplated in an action for breach of contract, nor implies legal damages ( 7 A.L.R.2d 1204 ; “Specific Performance: Compensation or Damages Awarded Purchaser for Delay in Conveyance of Land”).
No one claims that plaintiff alleged or sought damages, and it is conceded that in the body of the pleading there exists no allegation charging the seminary with liability for loss due to delay in transferring title, no mention of rentals or profits, and no request or prayer seeking an award thereof. Actually, plaintiff charged Mrs. Buchenau with liability for loss of rental income from the property in the sum of $5,000. Respondent argues that the trial court, without the existence of any pleading, had inherent power as a matter of course inei
If we are to classify the $34,011.20 credit allowed plaintiff on the purchase price in the final judgment appealed from as compensation for loss occasioned by the delay in performance, or for withholding title, a serious problem arises out of plaintiff’s failure to allege and pray for such loss in his complaint. Chase v. Blair, 105 Cal.App. 744 [ 288 P. 681 ], holds that such pleading is necessary to an award. Even the complaint in Lifton v. Harshman, 80 Cal.App.2d 422 [ 182 P.2d 222 ], heavily relied upon by respondent, alleged that the plaintiff had been deprived of rents, issues and profits by reason of defendant’s failure to convey the property (p. 436), and serves as no authority for respondent’s contention. The court in the second appeal in the Lifton case, 90 Cal.App.2d 180 [ 202 P.2d 858 ], holding that “the legal measure of damages which a vendee suffers by reason of the delay in performance by the vendor is the reasonable rental value of the property” cited Heinlen v. Martin, 53 Cal. 321 , 344; Abbott v. 76 Land & Water Co., 161 Cal. 42 , 47 [ 118 P. 425 ]; Coleman v. Dawson, 110 Cal.App. 201 , 213 [ 294 P. 13 ]; Smith v. Schrader, 80 Cal.App. 478 , 489 [ 251 P. 967 ] ; Jonas v. Leland, 77 Cal.App.2d 770 , 778 [ 176 P.2d 764 ]; Chase v. Blair, 105 Cal.App. 744 , 746 [ 288 P. 681 ]; Fisher v. Losey, 78 Cal.App.2d 121 [ 177 P.2d 334 ] ; but none of these cases aid respondent’s argument that rental loss need not be alleged and the court can make an award thereof as a matter of course. In most of them the loss based on rental value was alleged and prayed for in the complaint (Heinlen v. Martin, 53 Cal. 321 ; Abbott v. 76 Land & Water Co., 161 Cal. 42 [ 118 P. 425 ] ; Coleman v. Dawson, 110 Cal.App. 201 [ 294 P. 13 ]; Smith v. Schrader, 80 Cal.App. 478 [ 251 P. 967 ]); in others it could not be determined if the pleading so alleged, but from the context of the opinion it is obvious there was a proper allegation (Jonas v. Leland, 77 Cal.App.2d 770 [ 176 P.2d 764 ] ; Fisher v. Lozey, 78 Cal.App.2d 121 [ 177 P.2d 334 ]) ; and in one, Chase v. Blair, 101 Cal.App. 744 [ 288 P. 681 ], no allegation of loss appeared in the body of the complaint and the court held the prayer therefor insufficient upon which to base an award.
However, in consideration of the explicit terms of the agreement of August 30, 1955, the manner in which they were
Concerning the seminary’s next contention that the complaint fails to state facts sufficient to constitute a cause of action for specific performance, we refer to the well-established rule that the averments of the pleadings are to be liberally construed to support a judgment based upon any sound theory of the facts alleged (Marsteller v. Leavitt, 130 Cal. 149 [ 62 P. 384 ] ; Estergren v. Sager, 39 Cal.App.2d 401 [ 103 P.2d 177 ]), and if the necessary facts appear even only by implication or as a conclusion of law, the pleading will be upheld (Tietke v. Forrest, 64 Cal.App. 364 [ 221 P. 681 ]). Appellant urges that the contract (which it explicitly reaffirmed and agreed to perform) is incomplete respecting time of performance, and uncertain. This is without merit for if a contract does not specify a time for performance a reasonable time is implied by law (Pierce v. Avakian, 167 Cal. 330 [ 139 P. 799 ]; Civ. Code, § 1657). Likewise untenable is appellant’s argument that the pleading must
Appellant complains that the trial court made no findings of the interlocutory judgment concerning rentals, but that it nevertheless awarded plaintiff the gross income less expenses. Since no claim was made in the complaint against the seminary for rental value prior to the commencement of the action, as alleged in the cause against defendant Buchenau, and since plaintiff would not in any event be entitled to such allowance before this time, since the commencement of the action constituted the demand, the trial court could not very well have made a finding of fact concerning the same. The most it could do, under the circumstances, to implement the enforcement of the contract was to order an accounting in the future, which it did. This accounting, as it should be, was made at the time of final judgment after evidence had been taken in the matter, and at a time when the amount due under the agreement had to be determined.
Attack on the findings of the final judgment is made in connection with the computations made by the trial court, in that they are unsupported by the evidence. Appellant argues that certain deductions should not have been disallowed ; and to sustain the final judgment reflecting the computations means reducing the original purchase price by $40,724.84. A fair analysis of the figures used by the lower court discloses no alteration of the terms of the agreement, no reduction of the original purchase price admitted in the answer to be fair and reasonable, and a faithful enforcement of the contract. Appellant’s real objection is predicated on its persistent, but not well founded argument that “damages” should not have been awarded. The “reduction” in the purchase price claimed by appellant is nothing more than a credit properly allowed by the court under the specific terms of the agreement in determining the cash due under the purchase price. Whether the method of ascertaining the credit allowed followed the terms of the agreement and the specific items subject to proration enumerated therein, was largely a matter for
Appellant’s last three contentions entitled “Judge Chantry’s Decision” “Denial of Seminary’s Motion for Final Judgment by Judge Praeger,” and “Court Abused its Discretion in Denying Seminary’s Motion to File Supplemental Answer,” we dispose of somewhat summarily for the reason that appellant has failed to specifically point out wherein the trial court was in error in denying the motions.
Appellant moved for a final judgment in its favor, alleging in its affidavit plaintiff failed to comply with the interlocutory judgment; the motion was denied May 22, 1957. Appellant has advised us that it “is at a loss to know why the court refused to grant its motion” and announced “we now elicit from plaintiff a reason why the decision from Judge Chantry should not be reversed.” This in substance constitutes its argument to this court. We are aware of no rule on appeal that shifts the burden of proving error from appellant to the respondent; nor can we be expected to prosecute an independent inquiry to find reasons for or against the rulings of the trial court (Bradley v. Butchart, 217 Cal. 731 [ 20 P.2d 693 ]; Bell v. Southern Pacific R.R. Co., 144 Cal. 560 [ 77 P. 1124 ]). It is the duty of counsel by argument and citation of authority to show in what manner rulings complained of are erroneous. We are not obliged to perform the duty resting on counsel (Stohr v. Stohr, 148 Cal. 180 [ 82 P. 777 ]; Randall Estate, 194 Cal. 725 [ 230 P. 445 ]; Martter v. Byers, 75 Cal.App.2d 375 [ 171 P.2d 101 ] ; Richard v. Richard, 123 Cal.App.2d 900 [ 267 P.2d 867 ]).
The record discloses that the second time appellant moved for a final judgment it was also unsuccessful. Besides having to interpret the provisions of the interlocutory judgment, it was necessary for the lower court to determine as a matter of fact whether the seminary complied with those provisions and the plaintiff defaulted as charged. Again appellant has failed to specifically point out wherein the trial court was in error in denying the motion.
It is within the discretion of the trial court to deny a motion to file a supplemental answer, and the reviewing court will not reverse its order unless an abuse thereof is manifest in the record. We are in accord with respondent’s position that no sufficient showing was made to justify the
On the cross-appeal of plaintiff the sole issue is whether, where specific performance is decreed, the defaulting seller is entitled to interest on any part of the agreed cash purchase price. The cash price was $65,000, $5,000 of which plaintiff paid to the seminary which was deposited by it in the escrow department of the bank, leaving $60,000 due. The final judgment allowed interest at 7 per cent per annum to the seminary on the entire $65,000, from September 20, 1955, to the date plaintiff would deposit the same in escrow. No mention of such allowance was made in the interlocutory judgment, two years before, nor did the seminary seek the same.
Generally, loss of use of purchase money during a delay in conveying title based upon interest may be awarded a vendor in a decree of specific performance. This, like an
The fact that the vendor may or may not be in default under the contract seems of little importance in view of its specific terms, and since the interest allowance does not exceed plaintiff’s credit on net rentals. We also hold that the entire $65,000 not having been available for the seminary’s use, even though $5,000 thereof was held by the bank, that the interest should be computed on the entire cash price.
For the foregoing reasons the judgment is affirmed, each party to bear his own costs.
White, P. J., and Fourt, J., concurred.
A petition for a rehearing was denied August 28, 1959.
Cases cited
- Lifton v. Harshman 80 Cal.App.2d 422 p. 28, p. 29, p. 30, p. 33
- Lifton v. Harshman 90 Cal.App.2d 180 p. 29, p. 30
- Heinlen v. Martin 53 Cal. 321 at 344 p. 29, p. 30, p. 33
- Coleman v. Dawson 110 Cal.App. 201 at 213 p. 29, p. 30
- Chase v. Blair 105 Cal.App. 744 at 746 p. 30
- Abbott v. The 76 Land & Water Co. 161 Cal. 42 at 47 p. 30
- Smith v. Schrader 80 Cal.App. 478 at 489 p. 30
- Jonas v. Leland 77 Cal.App.2d 770 at 778 p. 30
- Fisher v. Losey 78 Cal.App.2d 121 p. 30
- People v. Wright 101 Cal.App. 744 p. 30
- Marsteller v. Leavitt 130 Cal. 149 p. 32
- Estergren v. Sager 39 Cal.App.2d 401 p. 32
- Tietke v. Forrest 64 Cal.App. 364 p. 32
- Pierce v. Avakian 167 Cal. 330 p. 32
- Cates v. McNeil 169 Cal. 697 p. 33
- Ohanian v. Kazarian 123 Cal.App. 196 p. 33
- Gray v. Dougherty 25 Cal. 266 p. 33, p. 37
- Bradley v. Butchart 217 Cal. 731 p. 35
- Bell v. Southern Pacific Co. 144 Cal. 560 p. 35
- Stohr v. Stohr 148 Cal. 180 p. 35
- In re Estate of Randall 194 Cal. 725 p. 35
- Martter v. Byers 75 Cal.App.2d 375 p. 35
- Richard v. Richard 123 Cal.App.2d 900 p. 35
- Brandt v. Clark 81 Cal. 634 p. 37
- Bird v. Potter 146 Cal. 286 p. 37