Clarkson v. Hoyt

36 P. 382, 4 Cal. Unrep. 547, 1894 Cal. LEXIS 1185
CourtCalifornia Supreme Court
DecidedMarch 26, 1894
DocketNo. 14,716
StatusPublished
Cited by1 cases

This text of 36 P. 382 (Clarkson v. Hoyt) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clarkson v. Hoyt, 36 P. 382, 4 Cal. Unrep. 547, 1894 Cal. LEXIS 1185 (Cal. 1894).

Opinion

BELCHER, C.

This is an action to recover the amount due on a promissory note for $1,969, given by defendant to plaintiff, and dated “Lakeview, Or., May 25, 1888.”

The material parts of the answer are as follows: It is alleged that in 1880 defendant was a resident in Siskiyou county, California, and was the owner of two fully equipped stock ranches in Lake county, Oregon, and also of a large number of cattle, horses, mares and mules, and was then engaged in the business of stock-raising in that county and state; that in September, 1880, he employed the plaintiff, at an agreed salary of $40 per month, to take the sole care, management and control of all said real and personal property in Oregon, as the agent of defendant, and in his name and for his benefit to conduct the business of raising, caring for, and managing the stock of cattle, horses, and mules aforesaid, and to preserve and keep in good repair the said ranches, machinery, and all appliances used in said business, to purchase all necessary supplies and hire all necessary labor that should be required in conducting the said business, and to market, from time to time, as the same should become salable, said cattle, horses, and mules; that, pursuant to such employment, the plaintiff, on September 15, 1880, received into his possession, and took the entire and sole control, care and management of said real and personal property, and thereafter continued to have and exercise such control, care and management until December 15, 1888, when he resigned his position; that from time to time [549]*549during his employment plaintiff informed defendant that he did not wish to draw all of his salary, but preferred to leave the same in defendant’s hands, drawing interest at the rate of seven per cent per annum, and that a portion of his salary did remain in defendant’s hands until the 25th of May, 1888; that on said last-mentioned day, and while defendant was temporarily on a visit to plaintiff at Lakeview, Oregon, plaintiff demanded of defendant a settlement of all of his salary then unpaid, and defendant, then believing that he had faithfully discharged his duties as agent, and upon his representation that the full amount of $1,969 was due him on account of his salary and interest thereon to that date, executed and delivered to him the promissory note sued" upon; “that said promissory note was so executed and delivered without any accounting or settlement between plaintiff and defendant as to the general business of plaintiff’s said agency, and under the said representations by plaintiff to defendant that his said business was all in good condition, and under the belief by defendant that all of plaintiff’s said representations were true”; that early in the summer of 1888, and after the execution of the said note, defendant commenced to investigate the true condition of his said property and business, and upon such investigation he for the first time learned that all of plaintiff’s statements and representations were false, and “that the plaintiff had fraudulently and in violation of his said trust spent large sums of money belonging to the defendant for matters and things personal to himself, and entirely foreign to the necessary management and care of defendant’s said property and business, and that he had from time to time sold and-otherwise disposed of a large number of defendant’s said cattle, horses and mules, and rendered no account whatever thereof to the defendant, nor paid to defendant any of the profits of said sales”; that at the time of the execution of the said note the defendant was not indebted to the plaintiff in the sum named therein, or in any other sum or amount whatever, for salary due plaintiff, or the interest thereon, or otherwise, but that, on the contrary, the plaintiff was then, and now is, indebted to the defendant in the sum of fully $6,000; and that the said note was made, executed, and delivered as aforesaid without any consideration whatever. And the prayer was that plaintiff take nothing by his action. The [550]*550court below found against the defendant upon all the issues raised, and rendered judgment in favor of the plaintiff according to the prayer of his complaint, from which, and from an order denying his motion for a new trial, defendant appeals.

When the plaintiff had introduced in evidence his note and rested his case, the defendant moved the court to appoint a referee to take and report an accounting between plaintiff and defendant. The plaintiff objected, upon the ground, among others, that the parties had settled their accounts in full up to the date of the note, and the note was given for the balance then found due. The court denied the motion, and held that it was premature at that stage of the ease; that under section 639, subsection 1, Code of Civil Procedure, a referee should not be appointed until it is made to appear that there is an issue of fact which requires the examination of a long account; and, also, that the execution of the note by defendant to plaintiff implied a settlement at that time. This ruling is assigned as error, but we think it clearly correct. The defendant was then called and sworn as a witness in his own behalf. It appears from his testimony that there were thpee settlements between the parties—one in November, 1883, one in October, 1885, and one in May, 1888—and that in making the last settlement plaintiff and defendant spent about a week in going over and examining all plaintiff’s accounts concerning his agency business; that, as a result of such examination, a balance of $1,969 was found due from defendant to plaintiff, for which the note in suit was then given; and that defendant then understood that the accounting was full and complete. At the conclusion of defendant’s testimony, he renewed his motion for the appointment of a referee. The plaintiff again objected, and the court denied the motion, holding that it could not be granted under the pleadings as they then stood. . The court said “that defendant, having alleged that there had been no account stated, embracing the matters intrusted to plaintiff as agent, which allegation set forth in the answer is deemed in law to be denied, might have an accounting of those matters, if such allegation should be found to be true. But the evidence introduced by the defendant, pertinent to said matter, conclusively shows that there was an account stated, embracing the agency business, as well as plaintiff’s claim for wages, that there was a balance struck, and that [551]*551defendant gave the note sued on for the exact amount of such balance, whereby he promised to pay it.” There was obviously no error in this ruling. Thereafter the defendant moved the court for leave to amend his answer by striking out the part thereof which alleged that the said note was executed and delivered without any accounting or settlement between plaintiff and defendant as to the general business of plaintiff’s said agency, and by inserting the following: ‘‘ That settlements between these parties plaintiff and defendant in regard to the transactions of plaintiff’s agency were had as follows: One about October 1,1883, the next about October 1, 1885, and the last one about May 25, 1888. That defendant kept no books of account of the transactions of plaintiff’s agency, and that said settlements were made upon such books and papers as plaintiff produced at such settlements, and that plaintiff at such settlements stated to defendant that such books and papers so presented by him at such settlements contained all the items of accounts of receipts and expenditures touching his transactions as such agent.

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Bluebook (online)
36 P. 382, 4 Cal. Unrep. 547, 1894 Cal. LEXIS 1185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clarkson-v-hoyt-cal-1894.