North v. Evans

36 P.2d 133, 1 Cal. App. 2d 64, 1934 Cal. App. LEXIS 1229
California Court of Appeal·Decided September 24, 1934·No. Civ. 1098·Published·Cited by 8 cases

Opinion

MARKS, J.

On December 13, 1927, Lillian E. Evans gave E. D. Wilkinson her promissory note for $700, due 180 days after date. On March 28, 1928, she gave him a second note for $787.50, due on or before September 1st of the same year. Prior to October 3, 1930, Wilkinson assigned both notes to C. C. North for collection. On that date Mrs. North instituted this action against Mrs. Evans to collect' the principal sums, interest, and attorney’s fees with S. G. North appearing as her attorney. Mrs. Evans filed her answer and on December 24, 1930, the trial court gave judgment against her on the pleadings. On December 31, 1930, E. D. Wilkinson assigned all his right, title and interest in this judgment to S. G. North for and in consideration of the sum of $100, and on January 5, 1931, O. O. North assigned all of her right, title and interest in the judgment to S. G. North in consideration of the sum of $5. Notices of these assignments were served upon Lillian E. Evans and her attorneys on January 5, 1931. This judgment was reversed by this court on October 2, 1931. (North v. Evans, 117 Cal. App. 317 [3 Pac. (2d) 609].) On December 3, 1931, the county clerk of San Diego County entered judgment in favor of Lillian E. Evans and against C. C. North in the sum of $92, costs of appeal.

The San Diego Trust and. Savings Bank secured a judgment against E. D. Wilkinson and his wife in the sum of $568.03, which was assigned to J. K. Wilson. On October 7, 1932, an execution was issued on this judgment and placed in the hands of the sheriff of San Diego County with instructions to levy upon all of the right, title and interest of E. D. Wilkinson in and to the promissory notes upon which this action is brought, by serving a writ of garnishment upon the county clerk of San Diego County who had possession of the notes which were attached as exhibits to a deposition of E. D. Wilkinson taken by the plaintiff in the instant case, and filed in the office of the county clerk. The clerk made a return on the garnishment stating that he had the notes *66 in his possession but did not deliver them to the sheriff. No garnishment was served on the maker of the notes.

On October 8, 1932, Lillian E. Evans had an execution issued on the $92 judgment for costs entered in- this case against C. C. North, and on the same day obtained an order of the Superior Court of San Diego County “directing the said clerk to recognize the levy of said execution by the sheriff of the County of San Diego, State of California, on the notes sued on herein as the property of C. C. North”. The sheriff served the writ on the county clerk and obtained possession of the notes. On October 13, 1932, Mrs. Evans directed the sheriff to withdraw the levy of the execution. On October 19, 1932, the sheriff of San Diego County sold all of the right, title and interest in the notes for $350 to J. K. Wilson under the execution issued in the case of the San Diego Trust and Savings Bank against Wilkinson and wife. The notes were delivered to Wilson.

On October 20, 1932, Lillian E. Evans directed the sheriff to levy a garnishment on the notes in the possession of J. K. Wilson under the execution issued on the judgment for $92 costs in the instant case and to sell the interest of C. C. North in the notes. Prior to the sale S. G. North filed a third party claim in which he claimed to be the legal and equitable owner of the notes and a person not named in the findings before us (a line evidently is omitted in the printed copy) filed another third party claim to a sixty per cent interest in the notes. On October 21, 1932, the interest of C. C. North in the notes was sold by the sheriff to Lillian E. Evans for $50, and the notes delivered to her attorney. No execution was ever levied upon, or sale had, of the interest of S. G. North or O. H. Lytle in the notes.

Mrs. Evans filed supplemental answers setting up the judgment for $92 costs and the proceedings had in connection with the execution sales which we have outlined. The case proceeded to trial with S. G. North acting as attorney for C. C. North, who continued as the plaintiff, and on May 8, 1933, the trial court rendered judgment in favor of the plaintiff in the sum of $1487.50 principal, $543.86 accrued interest, and $201.55 attorney’s fees.

This appeal is from that judgment. It being taken on the judgment-roll alone we must assume that all of the findings of fact, from which we have gleaned those set *67 forth, are supported, by sufficient material and competent evidence.

The first question presented to us is the effect of the assignment of the judgment of December 24, 1930, by E. D. Wilkinson and C. C. North to S. G. North, that judgment having been reversed on appeal.

The only California case directly bearing upon this question is the old case of Brown v. Scott, 25 Cal. 189, where it was held that an assignment of a judgment effected an assignment of the debt for which it was obtained, even though the judgment itself was void as being beyond the jurisdiction of the court to render.

The case of Rufe v. Commercial Bank of Lynclibxirg, Va., 99 Fed. 650, is factually similar to the instant case. There a judgment was recovered and an assignment made of it. It was later set aside and another judgment entered for the plaintiff. The Circuit Court of Appeals was of the opinion that one person cannot hold the judgment and another the debt as “they are inseparable”.

These cases furnish us with authority for reaching the conclusion that in the instant case the debt being assignable, the assignment of the judgment assigned the debt upon which it was based. We express no opinion on the effect of the assignment of a judgment recovered upon a cause of action which is not assignable under the laws of this state.

Defendant urges that neither the plaintiff nor S. G. North are the owners of the judgment or the debts on which it was obtained for the reason that title was passed to J. K. Wilson by the sheriff’s execution sale on October 19, 1932, under the judgment obtained by the San Diego Trust and Savings Bank against E. D. Wilkinson. There is no merit in this contention. The trial court found that many months prior to the execution sale, Wilkinson had assigned the notes in issue here to C. C. North for collection and that for a valuable consideration both Wilkinson and C. C. North had assigned the judgment obtained on the notes to S. G. North. All interest of Wilkinson in the notes passed out of him long before the levy of the execution and he had no interest in them at the time of the levy and sale. (Curtin v. Kowalsky, 145 Cal. 431 [78 Pac. 962].) It follows that Wilson acquired no interest in the notes or the debts through the sheriff’s sale.

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North v. Evans, 36 P.2d 133, 1 Cal. App. 2d 64, 1934 Cal. App. LEXIS 1229 (Cal. Ct. App. 1934).

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