Halperin v. Raville

176 Cal. App. 3d 765, 222 Cal. Rptr. 350, 1986 Cal. App. LEXIS 2477
CourtCalifornia Court of Appeal
DecidedJanuary 16, 1986
DocketNo. B007438
StatusPublished
Cited by7 cases

This text of 176 Cal. App. 3d 765 (Halperin v. Raville) 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
Halperin v. Raville, 176 Cal. App. 3d 765, 222 Cal. Rptr. 350, 1986 Cal. App. LEXIS 2477 (Cal. Ct. App. 1986).

Opinion

Opinion

STONE, P. J.

The issue for resolution on appeal is whether the evidence was sufficient to support the trial court’s decision that appellant/defendant (son) received the benefit of monies loaned to appellant’s father (father) by respondent/plaintiff (plaintiff) and is therefore obligated, along with father, to repay plaintiff. (Civ. Code, § 3521.)1 Applying the usual standards of appellate review, we conclude there was sufficient evidence permitting application of this rule of equity. Accordingly, the judgment below is affirmed.

Facts

The facts are stated in the light most favorable to the judgment. (Campbell v. Southern Pacific Co. (1978) 22 Cal.3d 51, 60 [148 Cal.Rptr. 596, 583 P.2d 121].) Plaintiff moved to California from New York after retiring from the United States Postal Service in 1971. In California, plaintiff worked part-time as a typist for Jay Vasquez who owned a small financial consulting business. In 1979, Mr. Vasquez introduced plaintiff to father and son at Caraville Arms, the family gun manufacturing business, explaining to plaintiff before the meeting that father was in dire financial circumstances and needed a loan.

Plaintiff and father soon developed a close friendship. They often went gambling together at the horse races and plaintiff frequented Caraville Arms on a regular basis. Several months after their introduction and for the next several years, plaintiff provided money to father at varying intervals and for varying amounts of $250 to $5,000. Father would complain to plaintiff that he needed to borrow money or he would go bankrupt. Plaintiff wanted to [769]*769help out because he admired father’s skill as a craftsman and they were friends. Later, plaintiff advanced money to father for fear that the business would collapse and he would lose the money he had already loaned father. Plaintiff’s continuous loans consisted solely of his life’s savings.

On one occasion, father told plaintiff he needed $20,000 to pay off a debt on a piece of machinery at Caraville Arms. This request came after son had taken an active role in helping plaintiff sell plaintiff’s AT&T stock for $48,000. Son had contacted the stockbroker on plaintiff’s behalf and had gone with plaintiff to meet with the stockbroker for the first time. Son even forged plaintiff’s deceased mother’s signature on the stock in order to assist plaintiff in selling them. The stockbroker testified that both plaintiff and son seemed anxious to get the highest possible price for the stock. Son had identified himself to the stockbroker as the owner of Caraville Arms and stated that plaintiff was interested in investing capital in the company. On another occasion, son assisted plaintiff in completing the paperwork to sell plaintiff’s oil lease. Plaintiff received $13,000 from this sale of which $10,000 was loaned to father for business purposes.

Plaintiff asked for all the money back he had loaned father after plaintiff was rebuffed by son one day. Father refused.

Father testified he is the sole owner of Caraville Arms. Son “helps out” at Caraville Arms and father pays him as a machinist and gunsmith, but son is not a company employee. Son had his own business next door to father’s.

Son stated he has worked for father since 1966. He described his status with Caraville Arms as that of a subcontractor. When testifying, son always referred to Caraville Arms as “our” (meaning father and son) company. At one point, son identified it as a “father/son business.” All monetary transactions between plaintiff and father were referred to by son as transactions between plaintiff and “us.” Son further stated that Caraville Arms uses machinery and equipment purchased by son. Son also had loaned father money from son’s business on a monthly basis to keep Caraville Arms solvent. Eventually, son’s company assets were sold to pay the debts of Caraville Arms.

A past employee of Caraville Arms testified that the company was father’s business but that son “was in there, working with his father” and father and son “contributed equally in Caraville Arms.” He had worked with son in making gun parts. He denied son was an owner of Caraville Arms.

Proceedings

Plaintiff’s complaint against father and son and Caraville Arms for breach of contract, common counts, and fraud, was filed in 1983. The complaint [770]*770alleged that Caraville Arms was a corporation, partnership or other form of business entity. It further stated that, pursuant to an oral agreement, plaintiff loaned money to the defendants in the amount of $80,000 which the defendants refused to repay. Father and son filed a joint answer. They denied the allegations and raised the defense that the funds provided by plaintiff were a gift. The answer admitted that Caraville Arms was a partnership. It also referred to the company as a “family operation.”

After a court trial, judgment was entered against father and son in the amount of $78,315.45. The court issued a statement of decision which declared that, as to the issue of whether the monies father received from plaintiff were a gift or loan, logic dictated that a person “does not tender life savings to any individual without anticipation of said funds being returned.” The statement contained a list of findings pertinent to this issue and findings supporting the court’s conclusions that son was unjustly enriched by the transactions between father and plaintiff and therefore was individually liable to plaintiff. (Civ. Code, § 3521.)

Only son appeals the judgment. He attacks the judgment on the ground that the findings relating to his involvement in the matter were without evidentiary support in the record. Son does not dispute the amount of judgment or the conclusion that the monies provided by plaintiff constituted a loan.

Discussion

Without reviewing the sufficiency of each separate finding challenged by son,2 we note son’s primary contention that there was no factual basis for [771]*771concluding he was unjustly enriched by plaintiff’s loans because there was no evidence showing son had an ownership interest in Caraville Arms, Plaintiff claims the judgment against son is amply sustained by evidence of son’s partnership with father in Caraville Arms and son’s consequent liability as a partner for the company’s debts. (Corp. Code, §§ 15009, subd. (1), 15015.)

In urging this court to adopt his partnership theory, plaintiff tells this court that we can adopt any legal theory applicable to the case to support the judgment and not necessarily the one used by the lower court. (City of Alameda v. Premier Communications Network, Inc. (1984) 156 Cal.App.3d 148, 157, fn. 9 [202 Cal.Rptr. 684], cert. den. (1984) 469 U.S. 1073 [83 L.Ed.2d 508, 105 S.Ct. 567].) However, because we agree with son that no evidence was presented below of son’s legal interest in Caraville Arms, the only possible theory of law applicable to the case is the equitable one adopted by the trial court.

Therefore, both plaintiff and son are misguided in approaching the issues on appeal. The question for review is not whether son was a joint-owner or partner of Caraville Arms, but whether he benefited from plaintiff’s monetary assistance to that company and so became liable to plaintiff under equitable principles.

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Cite This Page — Counsel Stack

Bluebook (online)
176 Cal. App. 3d 765, 222 Cal. Rptr. 350, 1986 Cal. App. LEXIS 2477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halperin-v-raville-calctapp-1986.