Bidart Bros. v. Elmo Farming Co.
Opinion
Lead Opinion
Hastings, J.
Bidart Bros. (Bidart), plaintiff and appellant, sued Elmo Farming Company (Elmo), defendant and respondent, to recover rents collected by Elmo on behalf of Bidart. The rents were on lands sold to Bidart by Elmo but subject to certain leases. The trial court permitted Elmo to set off the rents against claims asserted under purchase price promissory notes and deeds of trust. Bidart appeals.
Facts
This case requires an occult skill on behalf of the trial court and this court to perceive the real intent of the parties involved in a complicated real estate transaction where the written documents and actions of the parties relating thereto are often contradictory.
*252 Elmo, a corporate subsidiary of Kern County Land Company (KCL), owned substantial unimproved real property located in the North Kern Water Storage District. 1 On November 1, 1963, Elmo leased 10,000 farming acres to its parent corporation, KCL, under 51 different leases, all of Which were identical in basic terms. The leases expired on December 31, 1965. The total annual rent was $500,000, one-third of which was due on April 1 of 1964 and two-thirds on December 1, 1964. The payments were the same for 1965.