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

GOODMAN, District Judge.

This diversity case 1 poses the troublesome question of the nature and extent of the power of this Court, under uncertain California law, to mold a just and appropriate equity decree.

The assignors of the parties litigant, in May of 1946, entered into a timber purchase contract. The contract vendee agreed to purchase from the vendor certain timber lands for a price of $750,000 to be paid out of the proceeds of timber cut, with certain fixed minimum payments.

Their assignees proceeded under the contract. All went reasonably 2 well until $585,000 had been paid by vendees.…