Mathews v. Savings Union Bank & Trust Co.

184 P. 418, 43 Cal. App. 45, 1919 Cal. App. LEXIS 803
CourtCalifornia Court of Appeal
DecidedAugust 26, 1919
DocketCiv. No. 2807.
StatusPublished
Cited by12 cases

This text of 184 P. 418 (Mathews v. Savings Union Bank & Trust Co.) 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
Mathews v. Savings Union Bank & Trust Co., 184 P. 418, 43 Cal. App. 45, 1919 Cal. App. LEXIS 803 (Cal. Ct. App. 1919).

Opinion

BRITTAIN, J.

This appeal concerns the construction of sections 1269a and 1273 of the Code of Civil Procedure, and section 15 of the Bank Act, as they were amended in 1915. They relate to escheats of unclaimed bank deposits. The facts are admitted.

In 1868, William Anderson deposited with the Savings Loan Society Bank of San Francisco, the predecessor of the defendant, one thousand five hundred dollars, which with the accumulations of interest grew to $12,525.12 by the 1st of January, 1917. Anderson died at his residence in Lake County in August, 1892. Under the provisions of section 15 of the Bank Act the defendant made report to the state treasurer that for twenty years prior to the first day of January, 1917, there had been neither deposit nor withdrawal of funds from the Anderson account and no claim had been made nor address of the owner of the account filed within the twenty-year period. On March 16, 1917, the public administrator of Lake County was granted letters of administration on the estate of Anderson, and on the day following he made demand upon the bank for payment of the deposit account, which being refused, the administrator sued the bank at its place of business in San Francisco. The attorney-general intervened on behalf of the state. The judgment was against the plaintiff and in terms declared the money on deposit had escheated on January 1, 1917, nearly nine months before the judgment was entered.

In this case there is no question of identity involved. The plaintiff as the administrator of the estate of the depositor stands in his shoes. His rights in regard to the money in question are neither greater nor less than those of the de *48 positor. If, on December 31, 1916, either the depositor or the administrator of his estate had made demand on the bank, it was obligated to pay, because the money then on deposit rightfully belonged to the depositor or his estate. If payment had been refused, the superior court in San Francisco would have had jurisdiction of a suit against the bank, and upon the admitted facts its judgment must have been in favor of the depositor or his personal representative. Because the demand was not made until after January 1, 1917, the trial court determined, and the attorney-general here argues that the moneys escheated on that day, that the right of the depositor to the immediate payment no longer existed, and that this result flowed from the amendments of 1915.

[1] So obnoxious to the sense of justice is the suggestion that the state may take for its own use the property of one of its citizens, without compensation and without hearing, that, unless the language of a statute is express and unmistakable, courts will not attribute to the co-ordinate law-making body the purpose of invading the common right and violating those fundamental constitutional provisions by which the individual is protected against arbitrary action on the part of the government. The language of the statutes here in question requires no such interpretation.

[2] Section 1273 of the Code of Civil Procedure and section 15 of the Bank Act are correlative. They deal with bank deposits upon which, except for the accumulation of interest, neither deposits nor withdrawals have been made for a period of twenty years. The Bank Act provides that the moneys in such deposits “which shall have remained unclaimed for more than twenty years . . . and where neither the depositor nor any claimant has filed any notice with such bank showing his or her present residence, shall ... be deposited with the state treasurer after judgment in the manner provided in the Code of Civil Procedure.” (Stats. 1915, p. 1106.) The general language of the code section is the same, except that the last phrase reads, “shall . . . escheat to the state.” (Code Civ. Proc., sec. 1273.) The section then provides that when the attorney-general shall learn of such deposits, he shall bring suit in the superior court in Sacramento County, and that upon the trial, “if it be determined that' the moneys . . . are unclaimed as hereinabove stated, then the court must render judgment in favor of the *49 state declaring that said moneys have escheated,” and commanding the bank to deposit the money with the state treasurer thereafter to be dealt with as other escheated property.

So careful is the state of the rights of its citizens that even after the adjudication, for a period of five years, any person not a party or a privy to the escheat judgment may sue the state to recover the money, and this time is extended to infants and persons of unsound mind for a period of one year after the removal of the disability. (Code Civ. Proc., sec. 1272.)

In the suit commenced by the attorney-general any claimant may appear and present his claim of ownership. (Code Civ. Proc., sec. 1273.) The attorney-general argues that the only adverse claim which could prevail in the suit would be one based on the nonexistence of the very fact on which the suit is based, namely, that no claim had been made within the twenty years of dormancy. If this construction should be adopted, how unreliable would be the guaranty of justice contained in section 15 of the Bank Act, which provides that “any person interested may appear in such action and become a party thereto,” and that “the court shall have full and complete jurisdiction over the state, and the said deposits and of the person of everyone having or claiming any interest in the said deposits, or any of them, and shall have full and complete jurisdiction to hear and determine the issues therein, and render the appropriate judgment thereon. ’ ’ This language is most appropriate to provide for a real trial of the claim of interest or ownership, and it is equally inappropriate to provide for a merely formal adjudication of the jurisdictional fact of nondemand for a period of twenty years. Just as the statute provides for a claim of ownership after the judgment, so does it provide for a claim of ownership after the attorney-general sues and before the judgment. Of course, a claim may be made by the owner against the bank at any time before the expiration of the twenty years. There necessarily must elapse a period of time between the expiration of the twenty years and the commencement of the state’s suit. What are the rights of the owner of the money during that intermission?

[3] The attorney-general argues that after the expiration of the twenty years no court save that in Sacramento County has jurisdiction to make any order in relation to the deposit. *50 The Bank Act provides that when summons is issued under section 1273 of the Code of Civil Procedure the clerk shall also issue a special notice directed to all persons, requiring them to appear within sixty days after the first publication of summons to show cause why the money should not be paid to the state treasurer. This notice must be published with the summons, that is, for a period not less than four weeks. (Code Civ. Proc., sec. 1273.) Under the Bank Act it is not until the completion of publication that jurisdiction vests in the Sacramento court. The duties of the attorney-general are many, the demands upon his office are great. There may be most cogent reasons for delay in the bringing of suits of this nature. The suit in Sacramento concerning this deposit was not commenced until July 30, 1917, seven months after the expiration of the twenty-year period.

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Bluebook (online)
184 P. 418, 43 Cal. App. 45, 1919 Cal. App. LEXIS 803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathews-v-savings-union-bank-trust-co-calctapp-1919.