People v. Carlin

178 Cal. App. 2d 705, 3 Cal. Rptr. 301, 1960 Cal. App. LEXIS 2646
CourtCalifornia Court of Appeal
DecidedMarch 9, 1960
DocketCrim. 3544
StatusPublished
Cited by8 cases

This text of 178 Cal. App. 2d 705 (People v. Carlin) 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
People v. Carlin, 178 Cal. App. 2d 705, 3 Cal. Rptr. 301, 1960 Cal. App. LEXIS 2646 (Cal. Ct. App. 1960).

Opinion

DUNIWAY, J.

Three defendants appeal from judgments and orders denying their motions for new trial following verdicts of guilty on both counts of an information charging them with conspiracy to commit theft (Pen. Code, §§ 182, 484) and theft (Pen. Code, § 487) from one Frantzich. The specific offense was obtaining money by false pretenses. It is claimed that the evidence does not support the verdicts, that the court committed prejudicial error, and that the district attorney *708 was guilty of prejudicial misconduct. We find that the evidence is sufficient, and that the error or misconduct, if any, was not prejudicial. The reporter’s transcript contains 1,219 pages; so we can set out only the more important testimony.

The Pacts

The facts, stated as they must be in the light most favorable to the verdicts, are as follows. Defendant Carlin developed a powder which, when added to orange juice or other juices, produces a tasty drink. He called the drink “Orange Suzie.” In the years 1951 and 1952, he had some success in marketing it through stores or snack bars in the Los Angeles area, where he lived. His procedure was to set up and open a store, and then sell it to some person who would operate it, blending and selling the drink and purchasing the powder from a corporation organized in 1951 and called Orange Suzie of Southern California. It was owned one half by a man named ICrasne and one half by Carlin, his wife and his son-in-law. Carlin also owned and operated a bowling alley, and in or after 1952 the Orange Suzie operation ceased because he could not devote enough time to both businesses. Apparently the powder continued to be sold to the stores that had been established.

In 1954, Carlin lost his bowling alley. In 1955, Krasne having dropped out of the picture, Carlin decided to reactivate Orange Suzie. He went to Texas and sold 12 pounds of the powder to a store in Houston, and about 1,000 pounds to a jobber there. However, 90 per cent of the 1,000 pounds was returned to him, and he did no further business in Texas. He also went to a food show in Chicago, where he demonstrated the drink but did no business. In 1951 or 1952 he sold one substantial order in Guam, but did no further business there.

In 1956, he decided to expand the business by selling distributorships in various parts of the country, and the name of the corporation, which he and his family then owned, was changed to Orange Suzie Company, Inc. It had no plant for the manufacture of the powder, and no tangible assets. Its “office” was Carlin’s home. It had some advertising matter and it had a bank account with a branch of the Bank of America in Hollywood. The account was opened on February 23, 1955, with a deposit of $250. In 1956, the balances at the close of successive months were: May, $8.10; June, $7.78; July, $6.44; August, $10.82, and September, $1.04. The company had no distributors, no sales force, in fact, no personnel except Carlin. Its only other asset was the formula for Orange Suzie powder.

*709 On September 9, 1956, Carlin placed an “ad” in the San Francisco Examiner reading: “Distributors—America’s finest orange, pineapple and apple drink. Easy sales and big profits now. Orange Suzie Co., Inc., 811 Shenandoah, Los Angeles, Calif.” He had run similar ads in San Diego and Los Angeles, but these were more glowing, as suits a sunnier clime. One Joseph Cardinali answered the San Francisco ad, but would not come to Los Angeles to see Carlin. So Carlin wrote him, on the 22d, that he would come to San Francisco “so that you will have a better understanding of this highly profitable business.”

Shortly after September 22, Carlin met several times with the defendants Overman and Haas. Overman he had known slightly; Haas he met for the first time. Both had done some sales work, the precise nature of which is not described in the record. Carlin made no investigation of their background or experience. Their meetings lasted several hours on each of several days, and the purpose of the meetings was to discuss ways and means of promoting Orange Suzie. Each of the defendants testified as to what was said at these meetings, and their testimony, if believed, would indicate that no plot to obtain money by false pretenses was hatched. However, they did state that the whole operation was discussed, that Texas, Chicago, and Guam were mentioned, and that the advertising matter, of which more later, was reviewed. It was finally agreed that Overman and Haas would undertake to sell distributorships, and would receive a commission of 40 per cent of the sales price, plus an “override” of $1.00 per pound of powder sold to the distributor on reorders. The powder was to be sold to the distributor for $3.60 per pound, and he was to resell for $6.00 thus giving him a profit of $2.40 per pound. Carlin indicated that the minimum price for a distributorship was to be $1,250, for which the distributor would receive 10 blenders for mixing the drink, 100 pounds of powder, and 10 accounts. The accounts, which meant customers of the distributor, were to be obtained by the Orange Suzie Company. There is some conflict in the defendants’ testimony as to the responsibility of Overman and Haas for obtaining the accounts. The agreement was reduced to writing.

Carlin told the others about Cardinali, and the two of them departed for San Francisco, armed with the advertising matter and a form contract, and ‘ all the authority to perform a deal.” Carlin remained at home. They met twice with Cardinali, on October 1 and 2, and offered him a distributor *710 ship for $20,000. They said that at first he would only be making “five, six, eight hundred dollars a month, but within six months or a year” it would be “a great big business.” Cardinali was told that Orange Suzie was ‘1 all over, ’ ’ in Illinois, New York, Texas, Guam, Florida, and several other places; that there were a lot of distributors; that one had bought his distributorship for $10,000 and in two months sold it for $30,000. For the $20,000, Cardinali was to get 200 blenders, 2,000 pounds of powder, and the distributorship for San Francisco and San Mateo Counties. He said he couldn’t raise that much, and the salesmen then suggested $15,000 or $12,000. When asked if they would take a second deed of trust they said yes, and suggested $11,000 for 100 blenders, 500 pounds of powder, and the same territory, and said that a sales force would come up from Los Angeles and open 100 accounts. Cardinali was to buy the powder for $3.60 and sell at $6.00 per pound. He was shown the advertising matter that Carlin had supplied, and was told that, without working hard, he could make ‘ ‘ forty, fifty thousand dollars a year. ’ ’

The advertising matter refers to a “tremendous opportunity for financial independence,” and describes Orange Suzie as “the most efficient specialty food and drink operation in the world.” “Where there is traffic, there’s sales—lots of sales— . . . Experience has proven this to franchise operators [there was only one franchise operator anywhere and he paid nothing for the franchise]. ... We would hesitate to estimate figures as they would seem astronomical. ... We arrange everything. . . . The nation’s most popular drink . . . 1 Orange Suzie’ From coast to coast. ... We give the most.” “This is an ideal business for many ‘Ma and Pa’ operation for markets, drug stores in fact anywheres there is traffic.

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Bluebook (online)
178 Cal. App. 2d 705, 3 Cal. Rptr. 301, 1960 Cal. App. LEXIS 2646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-carlin-calctapp-1960.