Bank of America National Trust and Savings Association and Robert G. Litolff v. William Hayden

231 F.2d 595, 1956 U.S. App. LEXIS 3429
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 16, 1956
Docket14239
StatusPublished
Cited by20 cases

This text of 231 F.2d 595 (Bank of America National Trust and Savings Association and Robert G. Litolff v. William Hayden) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of America National Trust and Savings Association and Robert G. Litolff v. William Hayden, 231 F.2d 595, 1956 U.S. App. LEXIS 3429 (9th Cir. 1956).

Opinion

LINDBERG, District Judge.

This is an action brought in federal court on the grounds of diverse citizenship, appellant bank having its principal place of business in San Francisco, California ; appellant Litolff being an officer *597 at the Placerville, California branch of the bank; and appellee being a resident of the State of Utah at the time of filing his complaint and a resident of Oregon at the time of trial. Appellee, William Hayden, as plaintiff filed suit against the Bank of America National Trust and Savings Association (hereinafter referred to as Bank) and Robert G. Litolff as defendants. The complaint set forth three causes of action involving the same transaction. The first cause of action alleging a breach of an express contract, states, in substance, that on July 31,1951 at Placerville, California, plaintiff purchased from defendants certain negotiable trade acceptances issued by the Stockton Box Company and then held by Bank, valued at $14,287.63 for the sum of $14,-287.63, and paid therefor, and that Bank failed to deliver said trade acceptances or return the sum paid after demand. The second and third causes of action are common counts and allege that at the same time and place defendants, first, became indebted to plaintiff in the sum of $14,287.63 for money had and received by defendants, and second, defendants received from plaintiff the sum of $14,287.-63 to and for the use of plaintiff and that although plaintiff had demanded payment from defendants no part of said sum had been paid. Plaintiff’s prayer for judgment is for the one sum of $14,-287.63 and interest at the rate of 7% from July 31, 1951.

Defendants in their original answer to the complaint denied each and all of the foregoing allegations of plaintiff’s complaint and by way of an amendment to their answer and for a further and separate defense to the complaint and to each cause of action allege that on or about July 31, 1951 plaintiff individually and for and on behalf of Hayden-Friedman Company, a partnership, arranged to loan money to Booker Brothers, a partnership, for the purpose of enabling them to terminate business relations then existent between Booker Brothers and Stockton Box Company, a corporation, and of enabling Booker Brothers to satisfy certain of their obligations to defendant Bank and Stockton Box Company; that these obligations were represented by promissory notes in the principal amount of $23,578.88 issued by Booker Brothers and then held by Stockton Box Company and also by trade acceptances of Stockton Box Company in the amount of $14,287.63 which had been discounted by Booker Brothers with the Placerville Branch of defendant Bank; that as a part of the arrangement plaintiff individually and on behalf of Hayden-Friedman Company, loaned Booker Brothers $15,000 and at the request of Booker Brothers issued and delivered to Bank two checks, one in the amount of $6,000 drawn by Hayden-Friedman Company, and one in the amount of $8,287.63 drawn by Hayden, both of which were payable to Bank and delivered by Hayden and Booker Brothers to Bank in satisfaction of the obligations represented by the aforesaid trade acceptances; that the aforesaid promissory notes were can-celled and returned to Booker Brothers; that Bank was instructed to and did deliver the trade acceptances to Stockton Box Company; that as a part of and in consideration of said loan to Booker Brothers Hayden received a chattel mortgage on a sawmill and other personal property of Booker Brothers and that all obligations of Booker Brothers to Hayden were satisfied in the fall of 1951 by the payment of cash and the delivery of lumber and other chattels.

After trial a general verdict for plaintiff and against the defendants in the sum of $14,119.43 was returned by the jury upon which judgment was entered.

Bank and Litolff appeal, contending that the trial court erred as follows:

1. In denying appellants’ motions for a directed verdict at the close of appellee’s case and at the close of all evidence and in denying their motion for judgment notwithstanding the verdict.

2. In denying appellants’ motion for new trial on the ground that the verdict is contrary to the court’s instructions to the jury.

*598 3. In refusing to give to the jury certain instructions requested by appellants referred to in the record as “Defendants’ Instruction No. 5” and “Defendants’ Instruction No. 7.”

4. In denying appellants’ pretrial motion to inspect the books and records of the Hayden-Friedman Company, a co-partnership, and in the same connection denying appellants’ motion for a new trial on the ground that the verdict will result in a miscarriage of justice.

Because of such alleged errors appellants ask this court to reverse the judgment entered below and direct the district court to enter judgment in favor of appellants or in the alternative to grant a new trial.

Before proceeding to a consideration of appellants’ assignments of error it will be necessary to narrate at some length the evidence relating to the transaction of July 31, 1951 which is the subject of the lawsuit between the parties as well as that having to do with contemporary dealings between Booker Brothers and appellee, William Hayden.

There is in the record evidence which tends to establish the following: Loren and John Booker, doing business as Booker Brothers, were operating a sawmill at Shingle Springs near Placerville, California. They were in straightened circumstances, not having enough capital to purchase logs and convert them into lumber. In 1950 they arranged financing through the Stockton Box Company of Stockton, California (hereinafter referred to as Stockton Box). Funds were advanced against lumber production through the issuance of trade acceptances drawn by Booker Brothers on Stockton Box, accepted by Stockton Box and discounted by the Bank, who conveyed the proceeds to Booker Brothers. This arrangement continued into 1951. Under an agreement dated March 31, 1951 between Booker Brothers and Stockton Box the latter agreed to advance $25 per thousand board feet on logs decked at the sawmill. Each loan was to be evidenced by a promissory note payable to the company and secured by a chattel mortgage on all logs decked or to be decked at the sawmill. In consideration of the loans Booker Brothers agreed to sell all lumber produced by them during 1951 to Stockton Box at prices to be agreed upon thereafter. On July 31, 1951, the date of the transaction between Bank and appellee, Bank held trade acceptances of Stockton Box of the face value of approximately $15,000 which had been discounted by Bank and funds advanced thereon to Booker Brothers. The trade acceptances held by Bank were presentable to Stockton Box for payment as they severally fell due.

During July, 1951, being dissatisfied with the price Stockton Box was willing to pay for lumber Loren Booker, who handled sales and finances for the sawmill, carried on negotiations with William Hayden, the appellee, looking toward an arrangement whereby Booker Brothers would no longer have to sell their lumber to Stockton Box but would be able to sell elsewhere at a higher price. The arrangements proposed and the details' of the transactions between Hayden and Loren Booker, between Hayden and Bank, and between Loren Booker and Bank, to get Stockton Box out of the picture were matters upon which the evidence was in conflict.

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Bluebook (online)
231 F.2d 595, 1956 U.S. App. LEXIS 3429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-america-national-trust-and-savings-association-and-robert-g-ca9-1956.