In this action by respondent property owner against appellant loggers for breach of contract, an accounting, and other relief, the Superior Court of Mendocino County (California) held in favor of the property owner and declared a timber sale agreement between the parties rescinded. The loggers appealed.
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Overview
Under the terms of a timber sale agreement, the loggers were given the right to enter upon the land of the property owner’s predecessor in interest to remove timber for resale. The loggers were to pay for all timber removed on the 1st and 15th of each month and were to complete their harvest within a reasonable amount of time. The property owner discovered that the loggers had paid for only a portion of the timber removed, and they had consistently failed to make their contract payments when due. The loggers also failed to log the land and, as a result, had permitted waste to accumulate thereon. The trial court declared the contract rescinded due to the various breaches by the loggers, which the trial court noted were material. The court held that the record supported the findings of the trial court and concluded that such material breaches by the loggers constituted a failure of consideration entitling the property owner to rescind the contract. The court rejected the loggers’ argument that such a ruling declared a forfeiture of their rights to the timber because the rescission was the result of the loggers’ own wrongful conduct.
Outcome
The court affirmed the judgment in favor of the property owner.