Hauger v. Gates
California Supreme Court
42 Cal. 2d 752, 269 P.2d 609 (1954)
- Written by Daniel Clark, JD
Facts
Carson Hauger (plaintiff) purchased real and personal property from Charles Gates (defendant). As part of the transaction, Hauger issued Gates a promissory note secured by a deed of trust on the real property. Gates failed to turn over some of the personal property. In response, Hauger withheld payments due under the note. The amount Hauger withheld was lower than the value of the personal property Gates had failed to deliver. Gates then held a nonjudicial foreclosure sale of the real property, citing Hauger’s failure to make timely payments. Hauger sued to set aside the sale, arguing that he had a right to set off amounts due on the note by the value of the personal property that Gates failed to deliver. The trial court sustained Gates’s demurrer, holding that Hauger had failed to state a cause of action. Hauger appealed.
Rule of Law
Issue
Holding and Reasoning (Spence, J.)
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