McGregor v. Wright

3 P.2d 624, 117 Cal. App. 186, 1931 Cal. App. LEXIS 382
CourtCalifornia Court of Appeal
DecidedSeptember 28, 1931
DocketDocket No. 456.
StatusPublished
Cited by28 cases

This text of 3 P.2d 624 (McGregor v. Wright) 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
McGregor v. Wright, 3 P.2d 624, 117 Cal. App. 186, 1931 Cal. App. LEXIS 382 (Cal. Ct. App. 1931).

Opinion

ALLEN, J., pro tem.

The plaintiff appeals from a judgment of nonsuit as to both causes of action set out in the complaint.

It is alleged in the complaint that plaintiff was a resident of San Diego County and was highly respected and of high standing in the community, occupied a high position in and *189 had the confidence of the business world and was generally recognized in the community as a business man of the highest integrity and capability. That defendants were attorneys at law duly admitted to practice in the courts of California and the United States courts sitting in California ; that such defendants were and are engaged in the practice of law as partners under the firm name of Wright, McKee and C. M. Monroe. On the twenty-sixth day of January, 1927, plaintiff was elected trustee in the matter of the bankruptcy of Stephens & Company, a bankrupt, then pending in the United States District Court for the Southern District of California. Such appointment was obtained by and on the recommendation of the defendants to the creditors of the bankrupt estate. Plaintiff duly qualified and entered upon the duties pertaining to such trust. Defendants, while attorneys for certain creditors of said bankrupt estate, represented to plaintiff that there would be no conflicting interests between these claimants and the bankrupt estate; that there would be no contest as to such claims and that defendants were free to accept employment from and to act as attorney for plaintiff in his capacity as trustee. Believing such representations, plaintiff employed the defendants in connection with another firm, who were regularly appointed as attorneys for the trustee under proper order of court. Defendants accepted and entered upon such employment and advised plaintiff pertaining to his duties as such trustee until a petition was filed in the United States District Court praying for the removal of plaintiff as such trustee, and that plaintiff believed the advice of said defendants and acted thereon. That during his term as such trustee, plaintiff was almost daily in conference with the defendants concerning the administration of said estate and his duties relating to such trusteeship and that defendants appeared as attorneys for plaintiff as trustee in certain litigated cases.

That in the administration of said estate it became necessary for plaintiff to make certain trips to Los Angeles, San Francisco and other places, thereby incurring expenses which were charged to the bankrupt -estate. That plaintiff was advised by defendants that it was not necessary for plaintiff to keep an exact and detailed account of each item of such expense, but that in lieu thereof it would be sufficient *190 to charge plaintiff’s actual expenses thereof in a lump sum, all of which plaintiff did. That defendants advised plaintiff that he was lawfully entitled to draw an allowance of $500 per month out of said estate to be applied upon his services. That plaintiff did, with the approval of the referee in bankruptcy, draw such sum each month. That the bankrupt estate was the owner of shares of stock in the Occidental Properties, Inc. That defendants advised plaintiff that he was lawfully entitled to advance certain moneys belonging to the bankrupt estate to said corporation and, acting upon such advice, plaintiff did advance a considerable amount of the money belonging to the bankrupt estate to carry on the business of the said Occidental Properties, Inc. That plaintiff undertook, as the special agent of said last-named company, to manage its business, believing it to be to the best interests of the bankrupt estate. That under such arrangement plaintiff was paid $250 per month as such special agent, all of which was done under the direction and advice of defendants. That defendants advised plaintiff that it would be lawful for plaintiff to purchase from the bankrupt estate certain personal property which the plaintiff had been unable to sell. Acting thereon, plaintiff did purchase the same, paying therefor the reasonable market value. That all of such advice was erroneous, contrary to law, and was carelessly and negligently given.

That subsequent to all of the above acts it is alleged that defendants, disregarding their obligations as attorneys for plaintiff, fraudulently and perfidiously colluded and connived to injure plaintiff and to cause his removal as trustee and to inflict upon plaintiff punishment and injury, and for the purpose of destroying plaintiff’s reputation for honesty and integrity and to belittle and discredit plaintiff in his business and among his friends, prepared a petition for the removal of plaintiff as such trustee and procured the same to be signed and prosecuted by one Clarence W. Morris, an attorney at law. That defendants, in preparing such petition, alleged as causes therefor, the acts herein complained of, together with other acts which defendants had advised plaintiff were lawful for him to do, which acts were unlawful and contrary to law in the administration of the bankrupt estate and that on the hearing of said petition plaintiff *191 was removed as such trustee by reason of his acts performed under said advice.

That subsequent to such removal plaintiff made and filed a report of his accounts and doings as trustee and upon the hearing thereof by the referee the defendants, disregarding their obligations and in violation of their duties as attorneys for plaintiff, appeared by and through the defendant C. M. Monroe and contested the allowance of credits for various items claimed by plaintiff set out therein.

Plaintiff further alleges that by reason of the erroneous advice, fraud, double dealing and treachery of defendants he suffered a great nervous shock, was made sick and unable to attend to his business for many months; that he suffered greatly in his reputation for honesty and integrity; that he has been humiliated and disgraced, suffered financial loss and his credit has been impaired, to his damage in the sum of $100,000.

The second cause of action is the same as the first except that it is alleged the advice was given wilfully and with knowledge that it was wrong.

The answer of defendants admits that they are attorneys at law, admitted to practice as alleged. They admit that as attorneys, they represented certain creditors against the bankrupt estate; that the law firm of Gray, Cary, Ames & Driscoll was appointed and acted as attorneys for the trustee in bankruptcy in the administration of said estate; admit that plaintiff as trustee frequently conferred with defendants concerning certain features of the administration of the bankrupt estate such as the collection of assets. Deny that they acted as attorneys for plaintiff except in two cases, or advised him, except as to matters relating to collection of assets. That in conferring and advising with plaintiff, defendants were acting as attorneys for the bankrupt and not as attorneys for said trustee. They admit plaintiff took various trips to Los Angeles and San Francisco in connection with the administration of said estate; allege that if plaintiff charged his traveling expenses in a lump sum upon his account it was his own independent act and not by reason of any advice given by the defendants.

They admit plaintiff drew from the funds of said estate the sum of $500 per month for approximately 10 months; admit such withdrawal was improper and unlawful.

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

Related

State v. Weiss
New Mexico Court of Appeals, 2014
Marshak v. Ballesteros
86 Cal. Rptr. 2d 1 (California Court of Appeal, 1999)
Sukoff v. Lemkin
202 Cal. App. 3d 740 (California Court of Appeal, 1988)
Commercial Standard Title Co. v. Superior Court
92 Cal. App. 3d 934 (California Court of Appeal, 1979)
Zalta v. Billips
81 Cal. App. 3d 183 (California Court of Appeal, 1978)
Ralphs v. City of Spirit Lake
560 P.2d 1315 (Idaho Supreme Court, 1977)
Hansen v. Wightman
538 P.2d 1238 (Court of Appeals of Washington, 1975)
Ventura County Humane Society v. Holloway
40 Cal. App. 3d 897 (California Court of Appeal, 1974)
Neel v. Magana, Olney, Levy, Cathcart & Gelfand
491 P.2d 421 (California Supreme Court, 1971)
Budd v. Nixen
491 P.2d 433 (California Supreme Court, 1971)
Shelly v. Hansen
244 Cal. App. 2d 210 (California Court of Appeal, 1966)
Ishmael v. Millington
241 Cal. App. 2d 520 (California Court of Appeal, 1966)
De Castro v. Rowe
223 Cal. App. 2d 547 (California Court of Appeal, 1963)
Campbell v. Magana
184 Cal. App. 2d 751 (California Court of Appeal, 1960)
Walker v. Pacific Indemnity Co.
183 Cal. App. 2d 513 (California Court of Appeal, 1960)
Agnew v. Parks
343 P.2d 118 (California Court of Appeal, 1959)
Modica v. Crist
276 P.2d 614 (California Court of Appeal, 1954)
Walpole v. Prefab Manufacturing Co.
230 P.2d 36 (California Court of Appeal, 1951)
Ramsey v. Penry
128 P.2d 399 (California Court of Appeal, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
3 P.2d 624, 117 Cal. App. 186, 1931 Cal. App. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgregor-v-wright-calctapp-1931.