Clark v. Baen

242 P. 872, 75 Cal. App. 389, 1925 Cal. App. LEXIS 79
CourtCalifornia Court of Appeal
DecidedDecember 1, 1925
DocketDocket No. 2937.
StatusPublished
Cited by1 cases

This text of 242 P. 872 (Clark v. Baen) 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
Clark v. Baen, 242 P. 872, 75 Cal. App. 389, 1925 Cal. App. LEXIS 79 (Cal. Ct. App. 1925).

Opinion

FINCH, P. J.

The complaint alleges that the defendants are indebted to the plaintiff in the sum of $435.50 for “lumber lath sold and delivered” to them by plaintiff. The action was dismissed as to the defendant administratrix. The defendant Baen filed an answer denying the allegations of the complaint and alleging, as an affirmative defense, that the International Brokerage Company, a Delaware Corporation, doing business as California Grape Distributors, was adjudged a bankrupt by the federal court at Chicago and that a receiver was there appointed to take charge of the bankrupt’s estate; that the federal court at San Francisco appointed defendant ancillary receiver of the bankrupt’s estate in California; that the bankrupt, prior to. said adjudication, had carried on the business of “dehydration and drying of fruits and vegetables and of packing and *391 shipping the same” at Santa Rosa, California; that “at the time of the appointment of said defendant as ancillary receiver . . . the said bankrupt estate had remaining assets consisting of leasehold property and improvements on leasehold property consisting of drying and packing machinery, drying sheds, a warehouse and other improvements attached to the leasehold and the business connected therewith”; that under and by virtue of orders of the court “said defendant as ancillary receiver was duly authorized to carry on business of the said named bankrupt in Santa Rosa and in California”; that the defendant did “as ancillary receiver, and not otherwise, carry on and conduct . . . the business of the said bankrupt in the city of Santa Rosa” and employed “George 0. Whitney in and about the conduct of the business of said bankrupt at Santa Rosa”; and that the merchandise described in the complaint was “sold and delivered to said bankrupt estate upon the order of said George 0. Whitney.”

The court found that the allegations of the complaint are true; that the defendant was appointed ancillary receiver as alleged in the answer; that the business of the bankrupt was as therein alleged; that the defendant was duly authorized to ‘‘ continue the business of the International Brokerage Company for the balance of the drying season for the year 1921, at the plant of said International Brokerage Company at Santa Rosa”; that the defendant employed Whitney as alleged; that “during said time the said defendant Baen also conducted the business of buying, selling and shipping grapes at said City of Santa Rosa, and shipping said grapes to eastern markets, under the name and designation of Santa Rosa Dehydrating Company, and in and about which said last business the said defendant Baen also employed the said Whitney as agent and manager. That during the times herein mentioned and between September 30, 1921, and October 19, 1921, the said defendant Baen by and through said manager and agent, George 0. Whitney, did purchase from the said plaintiff herein, at Santa Rosa, in the said County of Sonoma, lumber lath for use in shipping green grapes purchased by the said defendant Baen under the name of Santa Rosa Dehydrating Company, and which said lumber lath were •"of the reasonable value of $435.50, and for which the said defendant Baen, by and through said agent and *392 manager, agreed' to pay to the said plaintiff herein the said sum of $435.50; no part of which has ever been paid.” Judgment was entered in favor of plaintiff against defendant Baen as prayed for in the complaint. Baen has appealed from the judgment. He contends that the evidence does not support the findings to the effect that he purchased the materials in question in his individual capacity and is personally liable for the value thereof.

Whitney was in charge of the International Brokerage Company’s business at Santa Rosa during the year 1920 and the dehydrating plant was built that year. The company did not operate under the name Santa Rosa Dehydrating Company. Its principal business there “was the dehydrating process.” “That is what it (the plant) was built for.” “It was advertised as a dehydrating plant.” “Fresh grapes were shipped during the year 1920,” to what extent does not appear. It used “lumber lath” in shipping such grapes, but the same was not purchased from plaintiff. The materials involved in this action were used in the shipment of fresh grapes during the year 1921. The plaintiff testified that they were ordered by Whitney and delivered at the dehydrating plant; that six deliveries were made; that his bookkeeper charged the sales in his account-books to the Santa Rosa Dehydrating plant; that “after there had been one or two loads went out, and I found the account here in my book before I knew they had gotten any, . . . I saw Mr. Whitney, and I says, ‘Whose is this dehydrating plant?’ I know I asked him who it was, and he said it consisted of Mr. Clarence E. Baen of San Francisco, he was the head man, he was the one that would send me the cheek. . . . He said Mr. Baen would pay that.” Plaintiff then wrote in pencil, after the name Santa Rosa Dehydrating plant in the account, “Clarence E. Baen, Whitney Manager.” Plaintiff further testified: “The International Brokerage Company, I knew they had gone into bankruptcy; that is, I heard they had, but I didn’t know anything about the dehydrating plant, and I did not know who the owners were or anything about it at all. . . . When we sold this lumber I knew nothing about” Baen’s receivership.

The defendant Baen testified: “My instructions to Mr. Whitney were . . . not to run up any bills or create any obligation that he did not have the money to pay for.” *393 The International Brokerage Company “left a great many debts, a great many obligations to grape growers and to everybody around this country. . . . Q. Why did they call it the Santa Bosa Dehydrating Plant (during the receivership) ? A. ... I really don’t know. Because the International Brokerage Company name was too long, for one thing, and Whitney took that line up and called it the Santa Bosa Dehydrating Plant because the International Brokerage Company name was too long, he said, and because it had a pretty rotten reputation. Q. Did you suggest he do that? A. No. I told him to take it down, that he had no right to do that, that he was manager for me of the International Brokerage Company, and he said, ‘That’s only the name, of the plant, that is not the name of the company.’ Q. It was run as the Santa Rosa Dehydrating Plant, wasn’t "it? A. Tes, sir.” Baen further testified that he operated the plant from July to October or November, 1921; that he incurred debts to the amount of about $15,000 in excess of the moneys in his possession as receiver; that he resides in San Francisco; that during the operation of the plant by him he made possibly a dozen visits to Santa Rosa, “different week-ends, Saturday afternoons and Sundays”; that during that time he purchased and shipped, as receiver, 125 or 130 carloads of fresh grapes, at an expenditure of $180,000 or $200,000; that Whitney was not the agent of defendant personally, but only as receiver; and that the materials purchased were used only in the shipment of grapes by the defendant as such receiver.

It is not necessary to consider whether the receiver, exceeded his authority by engaging in the business of buying and shipping fresh grapes, or whether that business is included in the business of “dehydration and drying of fruits and vegetables and of packing and shipping the same,” or whether the plaintiff, having no interest in the bankrupt’s estate, can raise the question of want of authority.

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

Related

J & J Builders Supply v. Caffin
248 Cal. App. 2d 292 (California Court of Appeal, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
242 P. 872, 75 Cal. App. 389, 1925 Cal. App. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-baen-calctapp-1925.