Appellant creditor sought review of a judgment of the Superior Court of Los Angeles County

 Procedural Posture

Appellant creditor sought review of a judgment of the Superior Court of Los Angeles County (California), which granted affirmative judgment in favor of respondent debtor in an action initiated by the creditor to recover monies allegedly owed by the debtor for the creditor's services rendered in aiding the debtor to procure a realty lease.

 

Overview: San Diego car accident lawyers

The creditor and the debtor executed an agreement wherein the debtor consented to give a percentage of profits to the creditor, which were earned from a realty lease, for the creditor's services rendered in aiding the debtor to procure such lease. The trial court granted affirmative judgment in favor of the debtor, and the creditor sought review. Under Cal. Civ. Code § 1577, mistake existed where it was caused by: (1) an unconscious ignorance or forgetfulness of a fact past or present, material to the contract; or, (2) belief in the present existence of a thing material to the contract, which does not exist, or in the past existence of such a thing, which has not existed. The court determined, however, that the debtor was entitled to demand of payment before creditor was able to initiate an action so that the debtor was provided the opportunity to settle such action before it began. The court reversed the judgment of the trial court.

 

Outcome

The court reversed a judgment of the trial court, which granted affirmative judgment in favor of the debtor and held that he was not liable to the creditor for paying for the creditor's services rendered in aiding the debtor to procure a realty lease.