Olson v. Glens Falls Insurance

181 Cal. App. 2d 165, 5 Cal. Rptr. 233, 1960 Cal. App. LEXIS 1976
California Court of Appeal·Decided May 23, 1960·No. Civ. 18881·Published·Cited by 6 cases

Opinion

DUNIWAY, J.

Appeal by plaintiff from a judgment in favor of defendant Glens Falls Insurance Company, Inc., after its demurrer to the complaint was sustained without leave to amend. We conclude that the complaint can be amended to state a cause of action.

*167 Plaintiff ’s counsel has afforded no assistance to this court. He states in his brief "Frankly, counsel for appellant has not been enlightened by either the court below or opposing counsel concerning wherein the alleged failure of the Complaint to state a cause of action lies.” This statement is made in the face of citation by defense counsel, in points and authorities in support of the demurrer, of Business and Professions Code, section 7398, and of Bridges v. Price, 95 Cal.App. 394 [273 P. 72], cited infra. Counsel, having been enlightened by respondent’s brief, has not deigned to reply. Were it not that to do so would penalize the plaintiff for the inadequacy of the brief of her counsel, we would be disposed to dismiss the appeal. (Cf. Rules on Appeal, rules 13, 15, 17(a), 18.)

There are six causes of action alleged, each of which charges that “the defendants” did certain things. However, it is clear from the pleadings, and appellant agrees, that the only genuine cause of action, if any, against Glens Falls, is the third. This cause of action incorporates portions of the second and first causes of action by reference. In essence, it is alleged that plaintiff was enrolled as a student at San Jose Beauty College, Inc. (also known as Beauty Culture, Inc.), having paid $110 tuition, and while so enrolled was injured by dangerous chemicals to which she was exposed, these having been furnished for her use in the course of instruction. The first cause of action charges negligence on the part of the college, and claims damages of $25,000. The second incorporates all of the first, and charges that such negligence was a breach of the contract for instruction, stating: “Defendants also expressly and impliedly promised that said premises, facilities, tools, devices and materials could be utilized without danger to plaintiff.” The third cause of action, the one here involved, incorporates the allegations of the first two causes, and then pleads, as an exhibit, a bond given by Glens Falls. We set out the pertinent portions of this bond in the margin. It is dated November 25,1955. 1

*168 The bond was given pursuant to section 7398, Business and Professions Code, as in effect in 1955. 2

*169 The prayer is for a judgment against Glens Falls for $5,000 plus medical and incidental expenses, loss of earnings, costs, and attorney’s fees.

It is now well settled that a bond such as this is a statutory bond, not a common-law bond, and that such an undertaking “can be no broader than the terms contained therein, read in connection with the terms of the statute applicable thereto.” (Lamb v. National Surety Co., 108 Cal. App. 297, 303 [291 P. 647].) Moreover, such a bond is construed as being conditioned upon faithful compliance with the particular law under which it is given, not with the law in general. Liability on such a bond does not extend beyond the terms of the act. This rule was firmly established in a series of cases dealing with brokers’ bonds given under the Corporate Securities Act. (Blumenthal v. Larson (1926) , 79 Cal.App. 726 [248 P. 681, 251 P. 241] ; Mitchell v. Smith (1928), 204 Cal. 197 [267 P. 540] ; Bridges v. Price (1928), supra, 95 Cal.App. 394; Anthony v. Van (1929), 96 Cal.App. 523 [274 P. 563] ; Hogberg v. Landfield (1929), 99 Cal.App. 360 [278 P. 907] ; Giles v. Welling (1929), 100 Cal.App. 515 [280 P. 539] ; Kennepohl v. Cary & Co. (1931), 112 Cal.App. 413 [296 P. 897] ; Burdette v. Maryland Cas. Co. (1935), 8 Cal.App.2d 17 [47 P.2d 317] ; White v. Financial Guarantee Corp. (1936), 13 Cal.App.2d 93 [56 P.2d 550] ; Lindstrom v. Palmer (1942), 54 Cal.App.2d 257 [128 P.2d 877].) The same rule has been applied to bonds given under the Public Works Acts (Miles v. Baley (1915), 170 Cal. 151 [149 P. 45] ; Evans v. Shackelford (1923), 64 Cal.App. 750 [222 P. 846] ; Continental Nat. Bank v. Republic Cas. Co. (1927) , 202 Cal. 586 [262 P. 300]); to bonds given under the Real Estate Brokers Act (Nittler v. Continental Casualty Co. (1928), 94 Cal.App. 498 [271 P. 555, 272 P. 309] ; Clark v. Patterson (1931), 213 Cal. 4 [300 P. 967, 75 A.L.R. 1124]); and to bonds of public officials (Hartford Acc. etc. Co. v. City of Tulare, 30 Cal.2d 832, 837 [186 P.2d 121]).

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

Olson v. Glens Falls Insurance, 181 Cal. App. 2d 165, 5 Cal. Rptr. 233, 1960 Cal. App. LEXIS 1976 (Cal. Ct. App. 1960).

181 Cal. App. 2d 165 (Olson v. Glens Falls Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Cavaliere v. Duff's Business Institute
605 A.2d 397 (Superior Court of Pennsylvania, 1992)
Bassett Federation of Teachers Local 727 v. Board of Education
112 Cal. App. 3d 532 (California Court of Appeal, 1980)
Porter v. Arthur Murray, Inc.
249 Cal. App. 2d 410 (California Court of Appeal, 1967)
Powers Regulator Co. v. Seaboard Surety Co. of New York
204 Cal. App. 2d 338 (California Court of Appeal, 1962)
People Ex Rel. Department of Public Works v. Henry
193 Cal. App. 2d 476 (California Court of Appeal, 1961)