Busse
Busse v. Pacific Employers Insurance
Opinion
Opinion
Hastings, J.
Statement of the Case
On March 1, 1966, Edward W. Busse (Busse), plaintiff and appellant, loaned A. C. DeForest (DeForest) and John L. Ott (Ott) the sum of $18,800 on a vacant lot on Hawthorne Street (Hawthorne property) in South Pasadena, California, to enable DeForest and Ott to construct a single family residence thereon. Prior to construction, a performance bond was executed guaranteeing construction of the residence. DeForest and Ott were partners and did business under the name of A & J Construction Company, general contractors. The loan of Busse to DeForest and Ott was secured by a deed of trust in the principal amount of $18,800. The construction of the dwelling proceeded according to plan.
On November 29, 1966, an escrow was opened with the Bank of America, Gardena branch, between various parties including Busse, DeForest, and Ott, whereby another dwelling would be built on a vacant lot located on Wren Street (Wren property) in Los Angeles, California. The escrow instructions provided that Busse would reconvey the deed of trust on the Hawthorne property which secured the note of $18,800 to Ott and DeForest. From the proceeds in escrow Busse would be paid…