Pacific Diamond Co. v. Superior Court

85 Cal. App. 3d 871, 149 Cal. Rptr. 813, 1978 Cal. App. LEXIS 2027
CourtCalifornia Court of Appeal
DecidedOctober 27, 1978
DocketCiv. 43602
StatusPublished
Cited by4 cases

This text of 85 Cal. App. 3d 871 (Pacific Diamond Co. v. Superior Court) 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
Pacific Diamond Co. v. Superior Court, 85 Cal. App. 3d 871, 149 Cal. Rptr. 813, 1978 Cal. App. LEXIS 2027 (Cal. Ct. App. 1978).

Opinion

Opinion

FEINBERG, J.

This case comes before us on a petition for a writ of mandate brought by the plaintiff in the court below. The Supreme Court granted an alternative writ and then transferred the cause to this court.

The facts, for purposes of this writ, were stipulated to at the trial court. They are as follows:

*874 Torczyner is the president and sole shareholder of Pacific Diamond Company, Inc., (petitioner) a California corporation engaged in the sale, at wholesale, of diamonds. Torczyner travels throughout the United States as a salesman of diamonds, which diamonds he carries with him. On October 17, 1969, Torczyner registered as a guest at the Denver Hilton Hotel in Denver, Colorado, for the purpose of carrying on his diamond business in Denver over the following several days. He was scheduled to depart from the hotel on October 22, 1969. During his stay, Torczyner would place the diamonds in the hotel safety deposit box provided therefor at such times as he did not need the diamonds in pursuit of his business. When Torczyner did need the diamonds for his business, he carried them in two wallets in his pockets. Torczyner had stayed at the hotel on prior occasions using the safety deposit box as a place of safekeeping for his diamonds. It appears that it was known to several Denver Hilton Hotel employees that Torczyner carried diamonds of considerable value.
On the morning of October 22, 1969, Torczyner removed his gems from the hotel safe and left the hotel to make some business calls. He returned to the hotel at about 1 p.m. for the purpose of packing and checking out. The hotel had been informed as to his departure plans. Instead of placing the diamonds in the safety deposit box and then going to his room, Torczyner carried the diamonds to his room. Upon entering his room, Torczyner was assaulted by two men who beat him and robbed him of the diamonds. The diamonds had an invoice cost to Pacific Diamond of $150,012.39.
Pacific Diamond filed suit in San Francisco against the Hilton Hotel Corporation (real party in interest), a Delaware corporation which operates the Denver Hilton, for damages arising out of the diamond robbery.
After issue was joined in the trial court, petitioner moved for a bifurcated trial on the issues of whether Colorado or California law was the applicable law and the proper construction of the applicable law to the facts as recited above. The trial court granted the motion.

Ultimately, the trial court held as follows:

1. California law is the applicable law;
2. Under California law, $250 is the maximum recovery that plaintiff may have; and
*875 3. If Colorado law is the applicable law, then $5,000 is the maximum recovery plaintiff could secure.

Petitioner contends in this proceeding that either

1. Colorado law is the applicable law and that under Colorado law, Hilton is liable without limitation as to damages either upon
(a) strict liability under the common law doctrine of innkeeper’s liability; or
(b) for its own negligence under the facts of this case; or in the alternative
2. The limitation upon liability of an innkeeper for its own negligence provided by the statutes of California or Colorado, whichever may be the applicable law, is unconstitutional.

Thus, petitioner argues, it is entitled to proceed to trial on a cause of action for the full amount of its provable loss and damages.

I. Which is the proper substantive law to apply—California or Colorado?

It seems reasonably clear under California law that where a choice of law question arises, the determination is made by applying a governmental interest analysis. (Reich v. Purcell (1967) 67 Cal.2d 551 [63 Cal.Rptr. 31, 432 P.2d 727]; Hurtado v. Superior Court (1974) 11 Cal.3d 574 [114 Cal.Rptr. 106, 522 P.2d 666]; Bernhard v. Harrah’s Club (1976) 16 Cal.3d 313 [128 Cal.Rptr. 215, 546 P.2d 719]; Offshore Rental Co. v. Continental Oil Co. (1978) 22 Cal.3d 157 [148 Cal.Rptr. 867, 583 P.2d 721].)

Since the statutes of 1895, California has limited the liability of innkeepers and hotel keepers for losses of or injuries to personal property without substantial change. California Civil Code section 1859 provides: “The liability of an innkeeper, hotel keeper, operator of a licensed hospital, rest home or sanitarium, furnished apartment house keeper, furnished bungalow court keeper, boarding house or lodging house keeper, for losses of or injuries to personal property, is that of a depositary for hire; provided, however, that in no case shall such liability exceed the sum of one hundred dollars ($100) for each trunk and its contents, fifty dollars ($50) for each valise or traveling bag and contents, *876 ten dollars ($10) for each box, bundle or package and contents, and two hundred fifty dollars ($250) for all other personal property of any kind, unless he shall have consented in writing with the owner thereof to assume a greater liability.”

A depositary for hire “must use at least ordinary care for the preservation of the thing deposited.” (Cal. Civ. Code, § 1852.)

Further, since 1872, California has provided for limited liability where the inn or hotel maintains a fireproof safe for the safekeeping of articles of small compass and unusual value and gives notice to that effect. California Civil Code section 1860 provides: “If an innkeeper, hotel keeper, operator of a licensed hospital, rest home or sanitarium, boarding house or lodging house keeper, keeps a fireproof safe and gives notice to a guest, patient, boarder or lodger, either personally or by putting up a printed notice in a prominent place in the office or the room occupied by the guest, patient, boarder, or lodger, that he keeps such a safe and will not be liable for money, jewelry, documents, furs, fur coats and fur garments, or other articles of unusual value and small compass, unless placed therein, he is not liable, except so far as his own acts shall contribute thereto, for any loss of or injury to such articles, if not deposited with him to be placed therein, nor in any case for more than the sum of two hundred fifty dollars ($250) for any or all such property of any individual guest, patient, boarder, or lodger, unless he shall have given a receipt in writing therefor to such guest, patient, boarder or lodger.”

It is plain, then, that for over 80 years, the common law rule of strict liability has not

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Bluebook (online)
85 Cal. App. 3d 871, 149 Cal. Rptr. 813, 1978 Cal. App. LEXIS 2027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-diamond-co-v-superior-court-calctapp-1978.