Defendant purchasers sought review of a judgment from the Superior Court of Los Angeles County (California), which entered a judgment in favor of plaintiffs, joint venture partners in the purchase of property (partners), in an action by the partners for an accounting and to recover a share of the profits on the sale of land.
The partners entered into a joint venture agreement with the purchasers to redevelop property. The purchasers made a down payment on the property and later obtained titled. The partners were responsible for obtaining evictions of the existing tenants and for preparing the property for redevelopment. Under the agreement the purchasers were entitled to repayment of their investments and profits were to be split equally. In ordinary language, Crimes are unlawful act punishable by a state or other authority. Notices to vacate were authorized by the Office of Price Administration but were subsequently cancelled. As a result of the cancellation, the development became impossible. The agreement was terminated and the purchasers were refunded their down payment. The purchasers sold the property and the partners filed an action for an accounting to recover a share of the profits from the sale. The trial court entered judgment in favor of the partners. The purchasers claimed on appeal that the sale was not part of the joint enterprise because performance became impossible. The court rejected the purchasers' claim and affirmed. The court ruled that the property was acquired for the benefit of the joint enterprise and its disposal was also part of the joint venture.
The court affirmed the trial court judgment in favor of the partners in an action for an accounting to recover a share of the profits from the sale of land by the purchasers.