Aaron Ferer & Sons v. Richfield Oil Corp.

This is an appeal from a judgment holding appellee, hereinafter called Richfield, not liable to appellant, hereinafter called Ferer, for failing to sell to Ferer certain well casing and pipe installed in its wells on certain lands, after the court’s reformation of a contract between Ferer and Richfield for the sale of certain personal property on the lands.

Ferer filed in the Superior Court of the State of California in and for the County of Los Angeles a complaint for a judgment declaring the meaning of the terms of the contract. It stated a cause of action under Section 1060 of the California Code of Civil Procedure. The case was removed to the District Court of the United States for the Southern District of California on the ground of diversity of citizenship. Ferer there amended the complaint and added a second cause of action for damages for Richfield’s refusal to permit it to take the well casing and piping. Richfield sought dismissal of both counts on the ground of failure of each to state a cause of action. The district court dismissed the count for declaratory relief and refused to dismiss the second count for damages for breach of contract.

Richfield then answered the…