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Union Bond & Trust Co. v. Blue Creek Redwood Co.

United States District Court for the Northern District of California
128 F.Supp. 709 (1955)


Union Bond (plaintiff) was the assignee of a vendee’s interest in a contract for the purchase of timber lands. Blue Creek (defendant) was the assignee of the vendor’s interest in the land contract. The vendees paid $585,000 out of the $750,000 purchase price before defaulting on the contract terms. The land contract provided that the vendor was entitled to retake possession of the property if a breach were not remedied within 60 days of written notice to the vendee. The contract included a time of the essence clause. Blue Creek provided written notice of breach and asserted its right to retake possession after the passage of 60 days. Union Bond filed suit seeking a declaration that the land contract continued to operate in full force and demanding specific performance by Blue Creek. Blue Creek counterclaimed for a declaration of Union Bond’s default, damages, and judgment quieting title in Blue Creek.

Rule of Law


Holding and Reasoning (Goodman, J.)

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