Byrd v. Savage

219 Cal. App. 2d 396, 32 Cal. Rptr. 881, 1963 Cal. App. LEXIS 2386
CourtCalifornia Court of Appeal
DecidedAugust 16, 1963
DocketCiv. 10512
StatusPublished
Cited by15 cases

This text of 219 Cal. App. 2d 396 (Byrd v. Savage) 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
Byrd v. Savage, 219 Cal. App. 2d 396, 32 Cal. Rptr. 881, 1963 Cal. App. LEXIS 2386 (Cal. Ct. App. 1963).

Opinion

FRIEDMAN, J.

Petitioner was holder of a restricted real estate broker’s license. (See Bus. & Prof. Code, §§ 10156.5-10156.8.) An accusation was filed with the Real Estate Commissioner charging him with three violations: (1) making misrepresentations to Mr. and Mrs. Harold Chirhart, in violation of Business and Professions Code sections 10177, subdivision (f), and 10177, subdivision (Z), * in stating falsely that a certain piece of property to be used as security for a loan was free and clear of all encumbrances; (2) failure to register with the Division of Real Estate as a real property loan broker pursuant to Civil Code section 3081.01; (3) pleading guilty to violation of a city ordinance (drunk in or about an automobile), which was a breach of the conditions upon which the restricted license was held. The accusation was signed by Robert L. Stevenson, a deputy real estate commissioner. After a hearing, the hearing officer rendered proposed findings and decision, finding petitioner guilty of the first and third charges, dismissing the second charge and revoking petitioner’s license. The Real Estate Commissioner adopted the proposed decision. Petitioner then sought a writ of mandate in the court below aimed at annulling the revocation. The lower court sustained the first charge, found inadequate evidence to support the third charge and denied relief. Petitioner appeals from the judgment denying relief.

*399 By his pleading, petitioner charged the administrative agency with failure to make findings on vital evidence. On appeal, he forsakes this ground and urges a quite different ground, namely, alleged error of the hearing officer in rejecting an offer of proof. The general rule, of course, is that a party may not change the theory of a cause of action on appeal. (Ernst v. Searle, 218 Cal. 233, 240 [22 P.2d 715].) The record, however, indicates that propriety of the evidentiary ruling was debated in the trial court, both before judgment and on a motion for new trial. Furthermore, the shift is one of legal theory rather than factual debate. Finally, the Attorney General has elected not to urge the procedural objection but to accept the lines of combat drawn by petitioner’s briefs on appeal. For these reasons we are not disposed to fasten petitioner with the theory disclosed in his pleading. (Ward v. Taggart, 51 Cal.2d 736, 742 [336 P.2d 534]; Panopulos v. Maderis, 47 Cal.2d 337, 340-341 [303 P.2d 738]; cf. Story v. Nidiffer, 146 Cal. 549, 552 [80 P. 692].)

Sole witnesses called to support the accusation were Mr. and Mrs. Chirhart. They testified that in December 1959 petitioner called upon them with another man, later identified as Nicholas Jankowski. The Chirharts knew petitioner because he was making efforts to sell their trailer court for them. Petitioner sought to borrow $4,000 from the Chirharts for Jankowski’s use in buying a motel in Oregon. According to the Chirharts petitioner offered as security a first deed of trust on the Dude Motel in West Sacramento, which motel was owned by petitioner and Bonnie Catón, who later married petitioner ; no loan was made on the occasion of this visit; several days later, however, petitioner returned to the Chirharts without Jankowski. At that time the Chirharts gave him a check for $4,000 and he gave them a promissory note and deed of trust on the Dude Motel. According to the Chirharts, petitioner told them that he and Bonnie Catón owned the Dude Motel “lock, stock and barrel” and that he was giving them a first deed of trust. As a matter of fact, there were three prior trust deeds against the Dude Motel, at least one of which was in default. These trust deeds aggregated approximately $70,000. Petitioner and Bonnie Catón had an investment of about $6,000 in the Dude Motel.

Petitioner’s testimony is in strong conflict with that of the Chirharts. He testified that when he and Jankowski called upon the Chirharts, they gave him a check for $4,000 and agreed to accept as security a third deed of trust on the Ore *400 gon motel which Jankowski was about to purchase. Jankowski’s" negotiations to purchase the Oregon motel fell through shortly thereafter. According to petitioner, he then returned the original check to the Chirharts, who gave him a new check for $4,000, with the understanding that he would use it in his own business operations. He gave them a deed of trust on the Dude Motel as security for this loan. He denied having said that the Dude Motel was free of encumbrances or that the deed of trust was a first deed of trust. He testified that he did not disclose the existence of the three existing deeds of trust against the Dude Motel because the Chirharts ’ loan was for a short term and the Chirharts would have lent him money on his own signature. The $4,000 loan was payable at the end of one year.

Jankowski testified that he and petitioner had called upon the Chirharts who, on that occasion, gave petitioner a $4,000 cheek to be used in Jankowski’s Oregon motel transaction. Jankowski’s Oregon transaction did not materialize and the $4,000 check was not used. He testified that his conversation with petitioner and the Chirharts did not include any mention of the Dude Motel.

After the above summarized testimony was in the record, petitioner’s counsel recalled petitioner to the witness stand. He asked petitioner several preliminary questions concerning a Mr. James Thompson, whom petitioner had discharged as a real estate salesman and who had sued petitioner for commissions. At that point counsel for the Real Estate Commissioner indicated his inability to discern the direction of the examination and suggested an offer of proof. Petitioner’s counsel then made the following offer of proof:

“Mr. Harbaugh: Yes, Mr. Hearing Officer, I offer to prove that there has been questionable activity with relation to the bringing of this accusation between a Mr. Thompson, who is a good friend of the Deputy Commissioner who signed the accusation, Robert L. Stevenson, and the ex-angered salesman, James Thompson. I further offer to prove that there have been threats made against Mr. Byrd; that Mr. Thompson was going to see that his license was taken away, not only by Mr. Thompson, but also threats by Mr. Chirhart. I offer to prove further that Mr. Stevenson and Mr. Thompson are acquainted—well acquainted; and that further the attorney that represented Mr. Chirhart in this transaction involving this note and deed of trust is likewise doing business with Mr. James Thompson, And it appears to me that, and I will fur *401 ther offer to prove that the only person who could have told anyone about this ‘drunk in and about’ was Mr. Thompson. This, of course, is, you understand, Mr. Hearing Officer, is a local ordinance. It is not reported to the Department of Motor Vehicles; so it had to be reported to the Commissioner’s office. I will further offer to show that there was a second cause of action stated here, which was dismissed at the very beginning of these proceedings, which showed—accused Mr.

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Bluebook (online)
219 Cal. App. 2d 396, 32 Cal. Rptr. 881, 1963 Cal. App. LEXIS 2386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byrd-v-savage-calctapp-1963.