Carlston v. Shenson

117 P.2d 408, 47 Cal. App. 2d 52, 1941 Cal. App. LEXIS 1106
CourtCalifornia Court of Appeal
DecidedSeptember 30, 1941
DocketCiv. 11726
StatusPublished
Cited by9 cases

This text of 117 P.2d 408 (Carlston v. Shenson) 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
Carlston v. Shenson, 117 P.2d 408, 47 Cal. App. 2d 52, 1941 Cal. App. LEXIS 1106 (Cal. Ct. App. 1941).

Opinion

DOOLING, J. pro tem.

Defendant, executrix of the last will of Gustave Weissbaum, deceased, appeals from a judgment for $67,346.84. The action was tried before a jury and represented a balance of principal and accumulated interest found to be due upon two promissory notes, executed and delivered to Anglo and London Paris National Bank as payee by G. Weissbaum & Co., a copartnership, in which decedent Weissbaum was one of the partners. One note was for $35,575.15 dated June 30, 1919, and the other for $70,000, dated August 31, 1920. The notes were purchased by Joseph F. Carlston, husband of the plaintiff, from the payee bank, and after Carlston’s death they with another note were bought by plaintiff at a probate sale for $25.

The testimony showed that decedent Carlston was the president of the Central National Bank of Oakland, that at the time the notes were executed G. Weissbaum & Co. had already borrowed to the limit allowed from the bank of which Carlston was president, that Carlston was interested with G. Weissbaum & Co. in a proposed shipment of rails to the Orient and that in order to raise part of the money necessary in that transaction the two notes here in issue were executed and their payment guaranteed by Carlston.

The ship which had been chartered to transport the rails to the Orient failed to carry out its contract and a libel in admiralty was filed against the Robert Dollar Co. for this breach. To secure its indebtedness to the Central National *55 Bank of Oakland, G. Weissbaum & Co. assigned to that bank its claim against the Robert Dollar Co. and transferred to the bank its business, giving the bank at the same time a promissory note for $75,000 with an agreement that upon the payment of this note the business would be retransferred to G. Weissbaum & Co. One W. P. Clark, who had theretofore been an accountant for G. Weissbaum & Co., was employed by Carlston to look out for his bank’s interest in the Weissbaum & Co. business and continued in that capacity from December 31, 1921, to April, 1932.

Plaintiff admitted the following payments on the two notes in issue: $61,467.82 and two payments of $15,000 each and claimed a balance due of $14,107.33 on the principal of the two notes. The balance of the judgment is for accrued interest.

To show payment in full the defendant relies, among other things, upon evidence that in 1922 Clark with the knowledge and consent of Carlston wrote the two notes off of the books of G. Weissbaum & Co. and thereafter presented periodical financial statements to Carlston upon which the two notes did not appear as liabilities of G. Weissbaum & Co. and to which Carlston at no time made any objection; that in 1928 a settlement was made with Robert Dollar Co. from which the Central National Bank of Oakland received a balance after deducting all expenses of litigation which with other cashiers’ checks brought the total in the bank to the credit of G. Weissbaum & Co. to $283,565.35. That of this amount $61,467.82 was paid to Carlston. The deposition of Raymond Benjamin that he collected $55,618.82 for Weissbaum from the United States government in 1932 on a contract to wreck Camp Kearny; that Carlston had previously informed Benjamin that he personally held an assignment from Weissbaum of this claim and that at the direction of Weissbaum and Carlston he paid this sum of $55,618.82 to the Central Nattional Bank of Oakland; and the testimony of Clark that in April, 1932, after this payment Carlston informed Clark that “they had no further interest in Weissbaum.” Prom these facts the jury could have found that the notes in suit had been fully paid.

Appellant attempted to introduce into evidence certain records of the bankruptcy court to show that Weiss *56 baum in proceedings to obtain a composition with his creditors had omitted these notes in his schedule of liabilities. An objection that this was hearsay and self-serving was sustained. Appellant argues that this was error and cites Simonton v. Los Angeles T. & S. Bank, 205 Cal. 252 [270 Pac. 672], The case is not in point. In that case a widow had omitted certain property from the inventory in her husband’s estate, which after the estate was distributed it was claimed should have been included as community property. The very fact in issue was whether this was a part of the husband’s estate and should have been inventoried and the court said:

“To have fraudulently omitted the property would have been a crime. The law presumes a person is innocent thereof, which presumption is applicable to civil and criminal cases alike. Where, therefore, in a civil action a question arises the determination of which involves the establishment of a fact that a party has been guilty of fraud or criminal act, the other party, in order to obtain a determination of such question in his favor, must overcome, by at least a fair balance of evidence . . . the legal presumption of innocence which exists in every case.”

The language quoted above distinguishes the Simonton case from this. In that case a question arose, i. e., whether the property should have been inventoried in the estate, the determination of which involved the establishment of the fact that a party had been guilty of fraud or a criminal act. In this case the schedule of debts in the bankruptcy proceeding was not an issue in the case. It was entirely collateral, independent and disconnected from any issue in the case. It has never been the law that a self-serving sworn declaration of a party in a collateral and independent matter may be introduced as proving or tending to prove the truth of such statement. The objection was properly sustained. The same rule is equally applicable to the omission of these notes as liabilities from a partnership return made to the federal government for income tax purposes.

Gustave Weissbaum in his lifetime had executed a series of waivers of the right to plead the statute of limitations to each of these notes of which the following is typical:

*57 “In consideration of the forbearance of the holder of the within note dated June 30, 1919, in the original sum of $35,575.15, payable to the Anglo & London Paris National Bank of San Francisco, California, to sue thereon during a period of six months from the date hereof, this day promised by the holder, at our request, we hereby agree to waive all statutes of limitation and all right to plead the same, in any action hereafter brought within four years from the date hereof by the holder of the within note or obligation, or by his or its assigns.
“Dated: This 21 day of May, 1934.
"G. Weissbaum and Co.
“By G. Weissbaum.”

These waivers were relied upon to toll the statute of limitations. The last of them were signed after Joseph Carlston’s death in the office of Mr. Roscoe D. Jones, attorney for the plaintiff herein.

The witness Wells, who was a business associate of Weissbaum, testified that in May, 1934, he went with Weissbaum to Mr. Jones’ office and was present when the waivers were signed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

P. v. Ramos CA2/4
California Court of Appeal, 2013
Tobler v. Chapman
31 Cal. App. 3d 568 (California Court of Appeal, 1973)
Horany v. Paris
1962 OK 7 (Supreme Court of Oklahoma, 1962)
Shabshin v. Pacifici
196 Cal. App. 2d 192 (California Court of Appeal, 1961)
Prowant v. Burke
90 A.2d 225 (District of Columbia Court of Appeals, 1952)
Drotleff v. Renshaw
208 P.2d 969 (California Supreme Court, 1949)
Bickford v. Mauser
128 P.2d 79 (California Court of Appeal, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
117 P.2d 408, 47 Cal. App. 2d 52, 1941 Cal. App. LEXIS 1106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlston-v-shenson-calctapp-1941.