Bogan v. Wiley

202 P.2d 824, 90 Cal. App. 2d 288, 1949 Cal. App. LEXIS 975
CourtCalifornia Court of Appeal
DecidedFebruary 23, 1949
DocketCiv. 13416
StatusPublished
Cited by6 cases

This text of 202 P.2d 824 (Bogan v. Wiley) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bogan v. Wiley, 202 P.2d 824, 90 Cal. App. 2d 288, 1949 Cal. App. LEXIS 975 (Cal. Ct. App. 1949).

Opinion

DOOLING, J.

Plaintiff, as administrator of the estate of Zaida Bogan, deceased, had judgment for $24,000 against defendant following a jury’s verdict. The defendant had made a motion for nonsuit and after the return of the verdict against him made a motion for judgment notwithstanding the verdict which was denied. From the order denying the motion for judgment notwithstanding the verdict defendant has appealed, that order being one expressly made appealable by section 963, Code of Civil Procedure. After the entry of judgment against him defendant made a motion for new trial which was granted. Plaintiff has appealed from the order granting defendant’s motion for new trial and defendant pursuant to rule 3(b), Rules on Appeal has cross-appealed from the judgment. We thus have three appeals presented. *290 We have concluded that the motion for judgment notwithstanding the verdict should have been granted and this being so it does not become necessary to pass upon the two later appeals.

Plaintiff’s action filed May 5, 1944, was based on an alleged loan of $12,000 made by plaintiff’s wife Zaida in 1932 to the firm of J. H. Wiley, The Furniture Man, a partnership then consisting of plaintiff’s mother-in-law, Mrs. Martha Wiley, and her son James F. Wiley, defendant herein. Plaintiff alleged that at the time of his wife’s death her estate exclusive of this loan was not of sufficient value to require probate, and that defendant concealed from plaintiff, the fact of the loan which was discovered by plaintiff’s attorneys after October, 1942. Plaintiff asked double recovery under section 612 of the Probate Code dealing with embezzlement or concealment of property of a decedent. Plaintiff had married Zaida Wiley in 1914 and from about two and one-half years after their marriage, plaintiff and his wife worked together in the Wiley furniture store till Zaida’s death in 1938. Zaida collected their salaries, and gave her husband whatever spending money he needed. She took care of all family financial matters.

On August 3, 1932, Zaida withdrew $12,000 from a joint account of her mother and herself and deposited it in her individual account. On August 9, 1932, she withdrew $12,000 and $3,000 from her individual account and on the same day $15,000 was deposited in the partnership account and used by the partnership to repay a loan to Bank of California. Defendant Wiley testified that he could not remember whether the money used to repay the aforesaid loan had come from Zaida. In 1932 the firm paid Zaida $370.40 interest and thereafter $720 per year through 1937 (which plaintiff notes is 6 per cent on $12,000) and $600 for 1938. She died in November of that year. The bookkeeper made the interest entries. Zaida’s and plaintiff’s joint returns and the partnership’s income tax returns both showed the payment and receipt of interest as set forth above. Defendant testified that the interest was really bonuses paid his sister, and so disguised in order that other salesmen would not know, although he admitted the salesmen had no access to the books.

On November 23, 1938, the day of Zaida’s death, defendant and his mother borrowed $12,000 from the Bank of America, depositing it in the firm account. On the same day $12,000 was also withdrawn from the firm account. Defend *291 ant testified that on that day he had the bookkeeper draw a cheek to the order of his wife, Hand Wiley, for $12,000 in payment of a $12,000 loan made to the firm by her father Frank Johnson, in 1926. The check register showed that an erasure had been made at this entry and when restored the entry read “Zaida and Lewis E. Bogan” in the bookkeeper’s handwriting. Defendant testified that although he did not customarily go over the cheek register, in cheeking through it he had noted the mistake made by the bookkeeper in entering this check and had corrected it himself. The reason he paid off the loan to his wife on the day of his sister’s death was because he thought some questions might be raised in settling his sister’s estate inasmuch as the books showed interest payments to his sister and none to his wife, “and I thought if it was out of the book, it would be just as well.”

Defendant points out that the “Notes Payable Others” ledger at page 201 (the posting reference in the check register at the erasure) contains the names of Frank Johnson and Maud Wiley, while the names of Zaida and Lewis Bogan do not appear thereon. The accountant’s entry on November 23, 1938, shows the loan of $12,000 repaid to Maud Wiley.

Plaintiff on February 3,1943, had filed a complaint against Martha Wiley to enforce an alleged contract to make a will in his favor. In that case plaintiff testified that he did not probate Zaida’s estate at the time of her death because he expected from his mother-in-law’s assurances that he would receive a half interest in the firm’s business when she died. This court held in Bogan, v. Wiley, 72 Cal.App.2d 533 [164 P.2d 912], that plaintiff had no enforceable contract against Martha Wiley’s estate on this alleged contract to make a will.

The case was tried on the theory that the above recited facts entitled plaintiff to a recovery under section 612, Probate Code, reading:

“If any person embezzles, conceals, smuggles or fraudulently disposes of any property of a decedent, he is chargeable therewith and liable to an action by the executor or administrator of the estate for double the value of the property, to be recovered for the benefit of the estate.”

The case was submitted to the jury on the theory that defendant had embezzled property belonging to the deceased wife’s estate. We cannot agree with this theory. Even if the word “embezzles” as used in this section is not used in *292 the technical sense of the criminal law, bnt means “to fraudulently appropriate to one’s own use, or conceal the effects of the estate which such person has in his possession,” as suggested in the early case of Jahns v. Nolting, 29 Cal. 507, 511, the question still presents itself: What property of the estate of Zaida Bogan which defendant had in his possession did he “fraudulently appropriate to his own use or conceal?”

Plaintiff suggests that it may have been either the check drawn to Zaida and Lewis Bogan or the debt owed to Zaida Bogan by the partnership. We shall examine each of these suggestions in turn.

The check never became the property of Zaida Bogan or of her estate. No rule is better settled than the one that the payee gets no property in a negotiable instrument until its delivery. (Civ. Code, §3097; 19 Cal.Jur. 826.) It is perfectly clear that there was never under plaintiff’s own theory any intention to vest title to this check in Zaida Bogan or her estate. It is plaintiff’s theory that defendant as managing partner caused the check to be drawn to Zaida and Lewis Bogan for his own purposes with intent to use it for his own ends. Even if the partnership be considered as a separate entity and may be conceived of as having delivered the check to defendant the intention with which it was delivered was the intention in defendant’s mind for he was the one who caused it to be executed; and he had no intention (on plaintiff’s own theory) of transferring or delivering the check to the payees or either of them.

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Bluebook (online)
202 P.2d 824, 90 Cal. App. 2d 288, 1949 Cal. App. LEXIS 975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bogan-v-wiley-calctapp-1949.