Baker v. Joseph

16 Cal. 173, 1860 Cal. LEXIS 200
California Supreme Court·Decided July 1, 1860·Published·Cited by 59 cases

Opinion

Baldwin, J. delivered the opinion of the Court

—Cope, J. and Field, C. J. concurring.

This suit was brought to recover of the defendant several sums of money, which the plaintiff alleges the defendant owes him and refuses to pay. The complaint alleges that the plaintiff, being about to leave this State for the East, in April, 1854, deposited with the defendant some $6,000, to be invested by the latter for him in loans at interest, and the principal and interest to be paid to plaintiff on request. That [176] when he returned, December 1st, 1858, he demanded the money of the defendant, who refused to pay. The complaint avers that the defendant did not invest this money, but applied it to his own uses; and this fact the plaintiff ascertained since his return. A second count in the complaint is, that the defendant, as agent for plaintiff, collected some $2,700 of rents on property of plaintiff in this State, to be accounted for and paid over on request, etc.

Defendant, in his answer, denied the averments of the complaint, and set up the Statute of Limitations of three years; also set up a counter claim of $17,000, for money paid, etc. The case was tried by’ a jury, who found a verdict for the plaintiff. A motion was made for a new trial, on several grounds—for newly discovered evidence among other causes—and overruled. To the plea of the Statute of Limitations, the plaintiff demurred, and the Court sustained the demurrer.

Several errors are assigned, which we will consider in their order.

1. That the Court improperly sustained the demurrer to the plea of the Statute of Limitations. This defense is in these words : “ And for further plea in this behalf, the said defendant says that the said plaintiff ought not to have or maintain his aforesaid action thereof against him, because he says that the said defendant did not, at any time within three years next before the filing of the plaintiff’s complaint, undertake and promise, in manner and form as the plaintiff has complained against him in the first count of his said complaint.” The obvious answer to this objection is, that, according to the complaint, this money was deposited with Joseph to be loaned out, from time to time, the interest collected, and the principal and interest held and kept by him for the plaintiff, until the plaintiff called for it. This was a continuous trust. The gravamen of the action is not that tills promise to loan the money was made, but that it was broken, the plaintiff insisting that Joseph did not and would not pay over this money when demanded. But if the contract were as averred in the complaint, and the defendant received the money on this agreement, the mere failure to loan the money would not place Joseph in any better situation than if he had complied with his contract. If he chose to use this money himself, he would be like a guardian using his ward’s money, in which case he is regarded as a borrower, upon the same terms upon which he could have loaned to others. (See the case of Bryan v. Craig, 12 Ala. 358.) But whether he loaned it or not, or whatever the responsibilities incurred by him for not loaning it, the repayment of the money received was [177] not to be made until demanded by plaintiff, and this was not done, according to the bill, until December, 1858. The statute, of course, does not commence to run from the making of a contract, but from the breach of it; and a depository is not in default, as a general rule, until demand. This, it seems to us, is an answer to the first error assigned by the appellant.

2. The next assigned error is, that proof was improperly admitted of the conventional rate of interest in San Francisco. There is no force in this objection. There was no specific reason given for the objection to this testimony. As a part of the general matters involved, or as explanatory of the motives, intent or for the delay to call for the money, or to make demand, or the inducements to invest here, this proof might have some bearing. Besides, the Court instructed the jury to disregard this proof, and it could, after this, have had no influence on the verdict. The result seems to show that it had none.

3. Whether the trial by the jury upon both counts was proper or not, we cannot now inquire. The defendant should have objected at the time. (See Smith v. Brannan, 13 Cal.)

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