Bronne Shirt Co. v. Matthess

88 F. Supp. 698, 1950 U.S. Dist. LEXIS 4205
CourtDistrict Court, S.D. California
DecidedFebruary 9, 1950
DocketNo. 10870
StatusPublished

This text of 88 F. Supp. 698 (Bronne Shirt Co. v. Matthess) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bronne Shirt Co. v. Matthess, 88 F. Supp. 698, 1950 U.S. Dist. LEXIS 4205 (S.D. Cal. 1950).

Opinion

YANKWICH, District Judge.

The complaint seeks to recover $10,000.-00, with interest. The plaintiff, a New York corporation, was dissolved on October 9, 1940. In 1927, it loaned the defendant, who is now a resident of California, $10,000.00. To evidence the indebtedness, the defendant executed five promissory notes in various amounts, dated on separate dates between July and September, 1927, the last one being dated September 12, 1927. The notes were payable on demand, and carried interest at six per cent. Since delivery to the plaintiff, they have been destroyed. Nothing has been paid on the principal or interest.

On February 4, 1946, Carl Bronne (as alleged in thé complaint) “acting in his capacity as a director of the dissolved corporation and in connection with winding up its affairs,” mailed a letter to' the defendant with reference to the loan, which contained the following paragraphs:

“The money we invested and the ten thousand we loaned you was our own and not Bronne Shirt Co. money and you can believe me when I tell you we could use some of it right now.

“The reason I didn’t bring up this matter before this is because I didn’t think you were in a position to take care of this obligation, but since you are doing so well I thought you should consider about repaying this money which was a loan to you.

“Please give this some thought and let me hear from you.”

The answer of the defendant, dated February 11, 1946, in rather discursive style, referred to various past difficulties and ended with the following paragraph relating to the loan:

“Carl, you cam, rest assured as soon as I can build up a safe reserve you are nmnber one when it comes to cleaning up old obligations.” (Emphasis added.)

The defendant has moved to dismiss upon the ground that the complaint does not state a claim. Federal Rules of Civil Procedure, Rule 12(b) (6), 28 U.S.C.A.

The action being admittedly barred by the statute of limitations, recovery is sought on the new promise. And the motion urges that the defendant’s letter is not a sufficient acknowledgement or new promise to toll the statute. California Code of Civil Procedure, Sec. 360. It is the established law of California that a new promise sufficient to take a case out of the operation of the statute of limitations, under section 360 of the California Code of Civil Procedure, must be a direct, distinct and unqualified admission of the debt. If the writer treats the indebtedness as subsisting and one for which he is liable, [700]*700a promise to pay will be implied. Yankwich on California Pleading and Procedure, 1926, Sec. 148, pp. 262-264; First National Bank of Park Rapids v. Pray, 1927, 86 Cal.App. 484, 488-490, 260 P. 933; Western Coal & Mining Co. v. Jones, 1946, 27 Cal.2d 819, 822-825, 167 P.2d 719, 164 A.L.R. 685. While the older cases laid down rather rigid requirements as to the certainty of the promise, the higher courts of California, beginning with the leading case of Southern Pacific Company v. Prosser, 1898, 122 Cal. 413, 52 P. 836, 55 P. 145, have held the most informal language which identifies the obligation and recognizes its existence sufficient compliance with the statute. See, Pierce v. Merrill, 1900, 128 Cal. 473, 61 P. 67, 79 Am.St.Rep. 65, Clunin v. First Federal Trust Co., 1922, 189 Cal. 248, 207 P. 1009; Shirley v. Shirley, 1927, 83 Cal.App. 386, 256 P. 283; Western Coal & Mining Co. v. Jones, 1946, 27 Cal.2d 819, 167 P.2d 719, 164 A.L.R. 685; In re Estate of Cole, 1942, 52 Cal.App.2d 520, 126 P.2d 660; Sterling v. Title Insurance & Trust Co., 1942, 53 Cal.App.2d 736, 128 P.2d 31; Wilson v. Walters, 1944, 66 Cal.App.2d 1, 151 P.2d 685.

The postponement of liquidation to a future time, as for instance, “when able”, does not make the acknowledgement uncertain. It merely imposes an additional condition and makes it encumbent upon the plaintiff to allege and prove its existence before he can sue on the new promise and recover. Rodgers v. Byers, 1900, 127 Cal. 528, 60 P. 42; Van Buskirk v. Kuhns, 1913, 164 Cal. 472, 129 P. 587, 44 L.R.A., N.S., 710, Ann.Cas. 1914B, 932; Maurer v. Bernardo, 1931, 118 Cal.App. 290, 5 P.2d 36; Heiser v. McAlpine, 1937, 20 Cal.App.2d 467, 67 P.2d 141; Horacek v. Smith, 1948, 33 Cal.2d 186, 199 P.2d 929; Fuller v. White, 1948, 33 Cal.2d 236, 201 P.2d 16.

While the quoted sentence taken from the defendant’s letter of February 11, 1946, has a certain element of indefiniteness, when read with the remainder of the letter and in conjunction with the letter to which it was an answer, — it is sufficiently definite to comply with the requirements 'laid down by the cases just referred to. It is certainly not weaker than the letter which the Court had under consideration in Sterling v. Title Insurance & Trust Co., supra [53 Cal.App.2d 736, 128 P.2d 34], in which the debtor spoke about the “plaintiff’s money”, and added, “I can’t tell you how much I appreciate it but I assure you you will get it all just as soon as I can manage it.”

It is as strong as the letter in Wilson v. Walters, supra [66 Cal.App.2d 1, 151 P.2d 686], which, after referring to the impossibility to make payment, added, “I hope that you will understand that only this kind of a situation would cause me to do this.”

While in the letter before us no definite “reserve” is designated, the contingency (the building up of a “safe reserve”) is not impossible of establishing. The plaintiff, having alleged that the defendant now has such reserve, the matter turns into a problem of proof.

However, the complaint as it stands now, and the exhibits attached to it, do not show compliance with another specific requirement of a valid new promise,— namely, that the promise be made to the obligee, i. e., to the creditor or to an agent who is authorized to receive it. Searles v. Gonzalez, 1923, 191 Cal. 426, 430, 216 P. 1003, 28 A.L.R. 78; Visher v. Wilbur, 1907, 5 Cal.App. 562, 90 P. 1065, 91 P. 412; President, etc., of California College v. Stephens, 1909, 11 Cal.App. 523, 105 P. 614; Roper v. Smith, 1919, 45 Cal.App. 302, 187 P. 454; In re Estate of Azevedo, 1936, 17 Cal. App.2d 710, 62 P.2d 1058; Restatement, Contracts, Sec. 86(2) (b).

The principle is stated succinctly in President etc. of California College v. Stephens, supra, 11 Cal.App. at page 526, 105 P. at page 615: “As to the person to whom the promise must be made, Mr. Wood says, in his work on Limitations, section 79 [3rd Ed.], that the promise must not only be made by one legally competent, but must be made to the creditor himself, or to some person duly authorised to ■ act for him in that regard, and if made to an agent, in order to make it operative,

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Related

Sterling v. Title Insurance & Trust Co.
128 P.2d 31 (California Court of Appeal, 1942)
Heiser v. McAlpine
67 P.2d 141 (California Court of Appeal, 1937)
Western Coal & Mining Co. v. Jones
167 P.2d 719 (California Supreme Court, 1946)
Horacek v. Smith
199 P.2d 929 (California Supreme Court, 1948)
Estate of Miles
164 P.2d 546 (California Court of Appeal, 1945)
Wilson v. Walters
151 P.2d 685 (California Court of Appeal, 1944)
Collins v. Cole
126 P.2d 660 (California Court of Appeal, 1942)
Fuller v. White
201 P.2d 16 (California Supreme Court, 1948)
Wiseman v. Sierra Highland Mining Co.
111 P.2d 646 (California Supreme Court, 1941)
Andrade v. Azevedo
62 P.2d 1058 (California Court of Appeal, 1936)
Maurer v. Bernardo
5 P.2d 36 (California Court of Appeal, 1931)
Roper v. Smith
187 P. 454 (California Court of Appeal, 1919)
Visher v. Wilbur
90 P. 1065 (California Court of Appeal, 1907)
Shirley v. Shirley
256 P. 823 (California Court of Appeal, 1927)
President & Board of Trustees of California College v. Stephens
105 P. 614 (California Court of Appeal, 1909)
First National Bank of Parks Rapids v. Pray
260 P. 933 (California Court of Appeal, 1927)
Anthony v. Janssen
191 P. 538 (California Supreme Court, 1920)
Rodgers v. Byers
60 P. 42 (California Supreme Court, 1900)
Clunin v. First Federal Trust Co.
207 P. 1009 (California Supreme Court, 1922)
Searles v. Gonzalez
216 P. 1003 (California Supreme Court, 1923)

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Bluebook (online)
88 F. Supp. 698, 1950 U.S. Dist. LEXIS 4205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bronne-shirt-co-v-matthess-casd-1950.