Bureau of Welfare, California Teachers' Ass'n v. Drapeau

68 P.2d 998, 21 Cal. App. 2d 138, 1937 Cal. App. LEXIS 235
CourtCalifornia Court of Appeal
DecidedMay 25, 1937
DocketCiv. No. 10510
StatusPublished
Cited by23 cases

This text of 68 P.2d 998 (Bureau of Welfare, California Teachers' Ass'n v. Drapeau) 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
Bureau of Welfare, California Teachers' Ass'n v. Drapeau, 68 P.2d 998, 21 Cal. App. 2d 138, 1937 Cal. App. LEXIS 235 (Cal. Ct. App. 1937).

Opinion

SPENCE, J.

—Plaintiffs filed a complaint entitled “Complaint for declaratory relief, to declare a trust and to recover trust funds”. They sought thereby to obtain a declaration of their rights with respect to certain funds deposited with the North American Building-Loan Association prior to the taking over of said association by the defendant building and loan commissioner; to have it declared that said funds were held “in trust and as a preferred claim ... to be paid before any other claims;” and to have the commissioner directed “to pay over said sums in full to plaintiffs with interest and without any deduction”. The original judgment, entered herein on September 3, 1935, was in favor of plaintiffs.

Defendants took an appeal from said original judgment and also made a motion for new trial. The minute order showing the ruling on said motion reads as follows: “Motion of defendant for new trial submitted on October 15, 1935, is now granted in part and findings and judgment ordered amended (see memorandum of opinion on file).” The memorandum of opinion referred to in said order reads as follows:

“On motion for new trial. Further consideration of the issues in this case lead the Court to the conclusion that judgment was erroneously entered for plaintiffs upon the point as to the creation of a special trust fund in favor of plaintiffs. Consideration of the agreement in question, and especially of the provisions of the building and loan statutes, would indicate that plaintiffs are in no different or better position in that regard than are the other applicants and purchasers of 1 Investment Savings Certificates’.
“The motion for new trial is therefore granted as to that point: to-wit, as to the status of the fund, and the findings and judgment herein will be changed and amended accordingly to conform to the views herein expressed and against the trust fund theory.
“Upon other points and as to other findings the motion is denied and the judgment will remain.”

Thereafter amended findings of fact and conclusions of law were signed and an amended judgment was entered on [141]*141November 16, 1935. The amended findings of fact and conclusions of law differed from those previously signed in that the trial court found and concluded “that none of the money deposited by any of the plaintiffs is held in trust by the loan association or the commissioner and the court finds that the action of defendant commissioner in approving the claims of plaintiffs for payment upon the same basis and in the same proportion as the claims of other creditors and investment certificate holders and not otherwise was proper and correct”. It further concluded that defendant was “not entitled to deduct an entrance fee in the sum of $10.00 or any entrance fee whatever, from the monies deposited by any of the plaintiffs, or to deduct anything on that account”. The amended judgment was entered accordingly. Plaintiffs made a motion to set aside the amended judgment, claiming it was void. Plaintiffs also made a motion under section 663 of the Code of Civil Procedure to set aside the amended judgment and to enter another and different judgment. In addition thereto, plaintiffs made a motion for a new trial. All of said motions were denied.

Plaintiffs have appealed (1) from the portion of the amended judgment reading “That the claims of said plaintiffs and each of them be approved for payment upon the same basis and in the same proportion as the claims of other creditors and investment certificate holders and not otherwise;” (2) from the order denying their motion to set aside the amended judgment as void; and (3) from the order denying their motion under section 663 of the Code of Civil Procedure to set aside the amended judgment and to enter another and different judgment. Defendant took an appeal from the whole of the amended judgment, but it appears from the briefs that defendant is satisfied with said judgment except in so far as it denied to defendant the right to deduct an entrance fee of $10 from the claim of each of the plaintiffs. The three appeals taken by plaintiffs and the two appeals taken by defendant are presented together in one set of briefs. We shall refer to the parties as plaintiffs and defendant throughout this discussion.

Before taking up the procedural points raised, we shall discuss the questions which appear to be determinative of the main controversy on the merits. Plaintiff Bureau of Welfare, California Teachers' Association, Southern Section, [142]*142is a corporation whose principal object is to provide for the welfare of retired teachers. The remaining plaintiffs are members of that association who had made deposits with the North American Building-Loan Association pursuant to applications and agreements similar to the one hereinafter set forth. The plan of the Bureau of Welfare sufficiently appears from the recitals found in said application and agreement. We deem it necessary to set forth in full said application and agreement as the main question on this appeal involves the construction placed thereon by the trial court. We have added the letters in parenthesis at the beginning of the paragraphs in order to facilitate reference to the various provisions. The application and agreement of plaintiff Frederick F. Martin was executed on November 17, 1928, and read as follows:

“Read and Understand This Application Thoroughly Before Signing.
North American Building-Loan Association
Under State Supervision 712 South Grand Avenue Los Angeles, California TRinity 4416
(A) “THIS APPLICATION AND AGREEMENT, made by and between FREDERICK F. MARTIN, Santa Monica, Calif., hereinafter designated as the ‘Applicant’, party of the first part, NORTH AMERICAN BUILDING-LOAN ASSOCIATION, hereinafter designated as the ‘Loan Association’, a corporation having an office in the City of Los Angeles, State of California, party of the second part, and BUREAU.OF WELFARE, CALIFORNIA TEACHERS’ ASSOCIATION, SOUTHERN SECTION, hereinafter designated as the ‘Bureau of Welfare’, a California Corporation, party of the third part;
“Witnesseth:
(B) “WHEREAS, Bureau of Welfare, aforesaid, has plans for establishing a home to properly care for its members and is desirous of accumulating a fund for the purpose of acquiring land, buildings, and equipping and maintaining said home, and the Applicant being one of other applicants who shall execute identical applications with this, is desirous of assisting in the accumulation of said fund by [143]*143investing in certificates of the Loan Association aforesaid, known as Investment Saving Certificates for the benefit of himself and the Bureau of Welfare;

“NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

(C) “1. The Applicant hereby applies to said Loan Association for an Investment Saving Certificate with maturity value of One Thousand Dollars ($1,000.00), and agrees to make monthly payments to said Loan Association of Five Dollars ($5.00) per month for a period of forty-eight (48) Months on said Certificate.

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Bluebook (online)
68 P.2d 998, 21 Cal. App. 2d 138, 1937 Cal. App. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bureau-of-welfare-california-teachers-assn-v-drapeau-calctapp-1937.