Superior Court of Stanislaus County

Procedural Posture

Plaintiff, a bean growers' association, appealed from a judgment entered by the Superior Court of Stanislaus County (California) in favor of defendant, a member, in the association's action to recover liquidated damages and attorney's fees for an alleged breach of contract.

Overview: labor code 2698

The member agreed to deliver to the association all of the beans he produced. The association was to act as his agent in marketing the beans. The contract provided for liquidated damages in case the member failed to deliver his crop. It also provided for attorney's fees. The association filed an action against the member alleging that he failed to deliver his bean crop. The trial court entered judgment in favor of the member. On appeal, the cause was submitted by stipulation of the parties upon the association's brief, because there was no appearance by the member. Thus, all of the evidence bearing upon the trial court's findings was that submitted by the association. The court held that (1) the contract for liquidated damages was valid and enforceable and fell within Cal. Civ. Code § 1671 because it was impracticable or extremely difficult to fix the actual damage, (2) because the findings of the trial court were contrary to the evidence submitted by stipulation, the court amended all of the trial court's findings to conform to the evidence, and (3) based on the proper findings drawn from the evidence, judgment was for the association.

Outcome

The court reversed the trial court's judgment and directed the trial court to enter judgment in favor of the association against the member in accordance with the court's findings and conclusions of law.