Procedural Posture

Defendants, subsequent oil producergasoline company, challenged the judgment of the Superior Court of Los Angeles County (California), which awarded plaintiff purchaserintervenor assignors a permanent injunctiondamages against defendants based on a contract for the purchase of oil.

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Table of Contents

Overview

The purchaser entered a contract with the oil producer for the purchaser of crude oilThe oil producer assigned a portion of the proceeds to the assignorThe oil producer sold the property to the subsequent oil producer after he failed to develop oilThe subsequent oil producer executed a contract with the gasoline company for the sale of the oilThe purchaserthe assignor argued that subsequent oil producer was insolventthat its failure to abide by the terms of their contract would result in irreparable damage to themOn appeal, defendants insisted that the purchaser failed to present a case for equitable relief upon the contract because the contract did not create an interest in real propertyit the purchaser had an adequate remedy at law for damages for the breachThe court found that the contract did not convey any interest in the real property but was merely a contract to sell personal propertyTherefore, the purchaser was not entitled to equitable relief because it had an adequate remedy at lawthe contract was not subject to specific enforcementThe assignors had no place in the litigation at any stage of the proceeding.