Star Pacific Investments, Inc. v. Oro Hills Ranch, Inc.

Oro Hills Ranch, Inc. (Oro Hills), Harry A. Lincoln, and J. Eldon Gresham (collectively referred to as defendants) appeal from a judgment cancelling an agreement between Oro Hills and plaintiff Star Pacific Investments, Inc. (Star Pacific) and an order awarding Star Pacific $2,500 in attorney fees. For the reasons which follow, we affirm the judgment and order.

Facts*

The transactions involved in this action revolve around an option to purchase certain real property in Butte County for $300 per acre ex ecuted on March 15, 1966, between Edward and Ruth Lane, as optionors, and Howard Olson and Harry Lincoln, as optionees.

Thereafter, following several transfers not relevant to this appeal, the option was assigned to Oro Hills on December 10, 1969. J. Eldon Gresham, a realtor, was the secretary/treasurer and Harry Lincoln was the president of Oro Hills. Howard Olson was another officer and shareholder of the corporation. Lincoln was also a real estate salesman for Gresham, and the executor of the estate of Edward I. Lane, one of the original optionors.

On January 19, 1970, Oro Hills sold the option to R. J. Hunter Developments, Ltd., for $20,000 plus an agreement to pay…