Moylan v. AMF Overseas Corp.

354 F.2d 825
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 28, 1965
DocketNo. 19845
StatusPublished
Cited by9 cases

This text of 354 F.2d 825 (Moylan v. AMF Overseas Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moylan v. AMF Overseas Corp., 354 F.2d 825 (9th Cir. 1965).

Opinion

BARNES, Circuit Judge:

Appellants, husband and wife, originally sued seven defendants on two causes of action. The first cause of action alleged a conversion, the second a conspiracy to violate the antitrust laws. The seven defendants were five corporations and two persons:

(1) Boston Insurance Co., Inc., a corporation (herein Boston);
(2) AMF Overseas Corporation, S.A., dba AMF Overseas Corporation (herein AMF);
(3) Tenpin, Inc., a corporation (herein Tenpin);
(4) The New Zealand Insurance Co., a corporation (herein New Zealand) ;
(5) Atkins, Kroll (Guam) Ltd., a corporation (herein Atkins, Kroll);
(6) Leo Lizotte; and
(7) Gilbert Niewold.

The factual situation is slightly complicated. It would do little good to enumerate all the facts herein. The dispute arose by reason of a “double” authorization to sell six certain damaged pinsetters owned by AMF and being lease-purchased by “authorities of Naval Air Station, Agana, Guam” — either one by Boston, the insurer, and one by AMF, the insured, or both authorizations by Boston. Both the alleys in which they had been placed and the pinsetting machinery itself were badly damaged by Typhoon [827]*827Karen, which devastated Guam on November 11, 1962.

One by one we consider the liability of each defendant.

I

Boston insured the machines at the time of the typhoon. The assured, AMF, at the request of Boston, sent an expert, defendant Niewold, to Guam to assess the extent of the loss. He reported on March 20, 1963 that the loss was “total,” and Boston paid AMF on the loss. We assume Boston received title to the machines, but neither the fact, nor the date thereof is disclosed. Boston never did business in Guam, and was never served in this action. Thus it was never a defendant.

II

Atkins, Kroll is alleged in Count I to have been the agent of Boston, and as such agent, upon inquiry of plaintiffs, allegedly advised plaintiffs that Boston would sell the damaged bowling alley equipment to plaintiffs. This was allegedly on March 25,1963. Plaintiffs allegedly delivered their check for $150, dated March 25, 1963, to Atkins, Kroll, as agent for Boston (Ex. 2).1 Atkins, Kroll gave in return a receipt, dated April 1, 1963.

Atkins, Kroll is also alleged to have been the agent of New Zealand Insurance Company and Dargan & Co. (insurance adjusters who were not named as defendants).

[828]*828In appellants’ reply brief, it is stated and conceded (p. 5):

“It was admitted that Atkins, Kroll (Guam) Ltd., held themselves as the duly acting agent for Boston, Dargan & Company and New Zealand Ins. Co. As such agent if they act for the known principal within the scope of agency, the principal should be liable and the agent would not be liable for a breach of a contract on the part of the principal.”

This concession absolves Atkins, Kroll.

III

Dargan & Company was never named as a defendant, nor was any attempt made to make that company a defendant.

IV

At oral argument before this court, counsel appearing for appellants made several concessions, after assuring this court he was authorized to make them. They were:

(1) That under its policy, the New Zealand Insurance Co. was only liable for burglary or theft of the pinsetting equipment, from and after April 3, 1963. Prior to that date the pinsetters had been scrapped.

(2) It was also conceded there had been no evidence introduced that any person had removed the pinsetters, in whatever condition they were, with a felonious intent, as required by the terms of the New Zealand policy.

(3) That there was no evidence before the district court indicating a conspiracy between any defendants, as charged in appellants’ second cause of action.

Thus the New Zealand Insurance Co. was entitled to be dismissed from the case by order of the trial judge, without the submission of any issue to th_ jury.

V

AMF, under the concession, was not a participant in any conspiracy. It was the holder of title to the pinsetters until such time as the Naval Air Station completed its lease-purchase payments, or until Boston paid the insured value to AMF for the total loss occasioned by Typhoon Karen and thus obtainc .1 title.

If Boston had title to the pinsetters prior to the date of sale, and therefore sold the property twice, it might be held liable to someone, either for conversion or for breach of contract. But Boston was never served as a party, and never subject to the court’s jurisdiction in this suit. There was evidence that Boston had title and directed both sales, under the mistaken apprehension it was authorizing but one sale to one person.

If AMF had title to the pinsetters at the time of their sale, the foregoing analysis as to the possible liability of Boston would likewise apply to AMF. Thus, if AMF had first sold to the scrap dealer and subsequently sold to appellants, AMF would be open to a suit for breach of contract. If AMF first sold to appellants and subsequently to the scrap dealer, it might be possible to hold AMF for conversion when they sold property to which they no longer held title.

Intriguing as these questions of title and remedy may be, they are not available as grounds of decision on this appeal in light of the lack of jurisdiction as to Boston and the lack of evidence as to AMF, i. e., the total failure of proof as to AMF liability in the district court. Appellants were not only unable to establish the order in which the sale to them and to the scrap dealer took place, but were not even able to identify the party who owned the machines at the time of the alleged conversion. The complete absence of proof that AMF held title to the machines and sold first to appellants and subsequently to the scrap dealer justifies the action of the district court in dismissing the complaint as to AMF on the conversion issue.

VI

Tenpin, Inc. was the last corporate defendant. It was named in Count I only, as responsible for the acts of its alleged agents Lizotte and Niewold, particularly when the latter allegedly entered the Naval Air Station “between March [829]*82925, 1963 and April 5, 1963” to remove portions of the pinsetters,2 and “to dispose of the remaining portions as scrap.” (Complaint, ffX)

The complaint charged a common law conversion after an alleged transfer of title on March 25, 1963 to plaintiffs. Tenpin did not buy any scrap, but did take three shock absorbers. The only evidence was that this taking (and transfer of title, if any) was -prior to March 25, 1963, during the time AMF had title. (Tr. pp. 187-91, particularly p. 191, lines 6, 7.) Tenpin could not have converted from plaintiffs, and (it having been conceded Tenpin was not party to any conspiracy) it was entitled to be dismissed as a defendant.

VII

We come to the two individual defendants.

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

Related

Economics Laboratory, Inc. v. Donnolo
612 F.2d 405 (Ninth Circuit, 1979)
Turner v. Willis
582 P.2d 710 (Hawaii Supreme Court, 1978)
American Steel Works v. Hurley Construction Co.
46 F.R.D. 465 (D. Minnesota, 1969)
Morgan v. Kight
294 F. Supp. 40 (E.D. North Carolina, 1968)
F. L. Moylan v. Amf Overseas Corporation
354 F.2d 825 (Ninth Circuit, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
354 F.2d 825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moylan-v-amf-overseas-corp-ca9-1965.