DeCamp v. First Kensington Corp.

83 Cal. App. 3d 268, 147 Cal. Rptr. 869, 1978 Cal. App. LEXIS 1761
CourtCalifornia Court of Appeal
DecidedJuly 27, 1978
DocketCiv. 52742
StatusPublished
Cited by6 cases

This text of 83 Cal. App. 3d 268 (DeCamp v. First Kensington Corp.) 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
DeCamp v. First Kensington Corp., 83 Cal. App. 3d 268, 147 Cal. Rptr. 869, 1978 Cal. App. LEXIS 1761 (Cal. Ct. App. 1978).

Opinion

Opinion

POTTER, Acting P. J.

Defendants First Kensington Corporation (hereinafter Kensington) and Barry S. Marlin (hereinafter Marlin) appeal from the judgment of the superior court awarding plaintiff Jack M. DeCamp compensatory and punitive damages totaling $72,525 on plaintiff’s complaint for money had and received and fraud. The cause was heard as an uncontested matter after the default of defendants was taken as a result of defendants’ failure to file a verified answer to the verified complaint.

The complaint alleged that defendants had jointly induced plaintiff to turn over $35,000 to Kensington. The misrepresentation charged was that the money would be invested in fixed deposits in banks in the United Kingdom where a high rate of interest would be received, whereas in fact no such deposits were ever intended or made and defendants simply converted the funds to their own use.

Defendants’ demurrers to the complaint were overruled and, on September 20, 1976, defendants filed an answer comprising simply a general denial signed by defendants’ counsel. The lack of verification was explained as follows:

“Comes Now Defendants, Barry S. Marlin and First Kensington Corporation, a California corporation, and in answer to Plaintiff’s Complaint on file herein, submits the following unverified answer by reason of the fact that to require these answering Defendants to file a verified answer to portions of Plaintiff’s Complaint could and would violate these answering Defendants’ rights afforded under the Fifth and Fourteenth Amendments of the United States Constitution.”

On Februaiy 4, 1977, plaintiff filed a motion to strike this answer or, alternatively, for judgment on the pleadings or summary judgment on the *272 ground that the answer failed to comply with the requirements of sections 431.30 and 446 of the Code of Civil Procedure and, therefore, constituted an admission of the allegations of the complaint and was insufficient to create any issue of fact.

The hearing on the motion, originally set for February 15, 1977, was continued to March 7, 1977, at which time oral argument was heard. An additional continuance to April 1, 1977, was granted “to afford defendants one last opportunity to verify answer to the verified complaint.” On April 1, defendants lodged with the court separate answers on behalf of Kensington and Marlin, each of which was verified by defendants’ counsel. The verification in behalf of Kensington stated that counsel’s office was in Los Angeles County and that “no officers of said Defendant are able to make the verification because they are absent from said county . . . .” The verification in behalf of Marlin stated that “said Defendant is unable to make the verification because he is absent from said county . . . .” In view of the fact that no prior notice was given that such answers were to be filed, the court further continued the hearing. The minute order noted the following:

“Counsel for defendants has informed the Court that the defendant Barry Marlin left Lo's Angeles on March 22, 1977 and is expected to return this coming week. He resides in Los Angeles and most of this temporary absence will be spent in New York City.
“Both first amended answers are lodged with the Court, but are ordered not to be filed at this time.”

The hearing was further continued to May 3, 1977. On April 19, plaintiff filed a supplemental memorandum characterizing the answers lodged on April 1 as “a transparent attempt to circumvent this Court’s order of March 7, 1977, and to violate the spirit' of the law requiring a party to verify an answer to a verified Complaint.” (Emphasis in original.) After hearing on May 3, 1977, the court granted plaintiff’s motion to strike the unverified answer and the court entered the default of defendants.

In the course of the oral proceedings on May 3, counsel for defendants also disclosed that Marlin “is no longer a resident of the State of California” and that he moved to the State of New York “approximately two weeks ago.” The court responded: “[T]hat isn’t going to correct his defalcations of the past several months.”

*273 Plaintiff has requested that this court take judicial notice of the guilty plea entered in Marlin’s behalf to six counts of a federal indictment filed July 27, 1977, in the United States District Court for the Central District of California. Defendants have not objected to judicial notice being taken of the indictment and plea pursuant to California Evidence Code section 452, subdivision (d). The indictment contains 24 counts. Marlin pleaded guilty to six counts. These six counts related to four different schemes, each of which is described in the indictment as a “scheme and artifice to defraud and obtain money by means of false and fraudulent pretenses.” One of the described schemes was closely parallel to that described in plaintiff’s complaint herein and employed the same bank account maintained by Kensington which was employed in obtaining the money from plaintiff. Three of the counts to which Marlin pleaded guilty alleged use of the mails to implement this scheme. None of the counts, however, to which Marlin pleaded guilty involved plaintiff as a victim.

Contentions

Defendants contend that (1) Marlin’s guilty pleas do not render the present proceedings moot, (2) their answers verified by the attorney during Marlin’s absence from the State of California were sufficient, (3) they were not required to file verified answers which might tend to incriminate them, and (4) on finding their answers insufficient, the court was required to give them a reasonable period of time within which to file amended answers. Plaintiff controverts all of these contentions.

Discussion

Summary

The guilty pleas of defendant Marlin do not moot the questions presented in this proceeding.

The purported verification of answers by defendants’ counsel was not sufficient, and the court properly declined to file them.

Code of Civil Procedure section 446 requires the answer to be verified despite the fact that “an admission of the truth of the complaint might subject the party to a criminal prosecution . . . .” To sustain the constitutionality of this requirement, we must construe it as implying a grant (to any answering defendant entitled to protection against self-incrimination) of immunity from use of the answer or evidence derived *274 therefrom in any subsequent criminal prosecution. So construed, the section validly required both defendants to file verified answers. Defendant Kensington has no Fifth Amendment rights and defendant Marlin is adequately protected by the implied use and derivative use immunity. The judgment must, therefore, be affirmed as to defendant Kensington. Defendant Marlin, however, is entitled to an opportunity to file a verified answer after the decision of this court establishing his right to use immunity becomes final.

Marlin’s Guilty Pleas Do Not Render This Proceeding Moot

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Cite This Page — Counsel Stack

Bluebook (online)
83 Cal. App. 3d 268, 147 Cal. Rptr. 869, 1978 Cal. App. LEXIS 1761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/decamp-v-first-kensington-corp-calctapp-1978.