Pressman

Abe Pressman and his wife Ruth Pressman from adverse judgments entered, following a trial without a jury, in two actions consolidated for trial. They were defendants in actions brought respec lively by respondents Ranchers Bank and John Knoll, against whom they cross-complained.

The Pressmans’ contentions on appeal are as follows: (1) The trial court’s interpretation of a contract between Pressman and Ranchers Bank was erroneous; (2) The trial court erred in resolving an ambiguity in the trust receipts; (3) The trial court erred in finding that the Knoll suit was not subject to the compulsory counterclaim requirement of Code of Civil Procedure section 439.

We find no reversible error and affirm;

The Facts

On or about October 1, 1965, Pressman entered into an agreement with John Knoll whereby he purchased Knoll’s automobile agency, West-way Motors, located in Lancaster. The consideration for the purchase was a promissory note in the amount of $5,000 given Knoll by Pressman.

On or about November 15, 1965, Pressman entered into arrangements with Ranchers Bank to finance his operation of Westway Motors. The arrangement between Pressman and Ranchers Bank provided that the…