People v. Davis

246 P.2d 160, 112 Cal. App. 2d 286, 1952 Cal. App. LEXIS 1019
CourtCalifornia Court of Appeal
DecidedJuly 18, 1952
DocketCrim. 4659
StatusPublished
Cited by17 cases

This text of 246 P.2d 160 (People v. Davis) 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. Davis, 246 P.2d 160, 112 Cal. App. 2d 286, 1952 Cal. App. LEXIS 1019 (Cal. Ct. App. 1952).

Opinion

MOORE, P. J.

Appellant was convicted on 23 counts of grand theft. He now demands a reversal of the judgments on the grounds of insufficiency of the evidence to support the verdicts, and errors in giving and in refusing certain instructions.

*288 Sufficiency o-f the Evidence

In April, 1947, appellant was a salesman of used cars. He met certain engineers of an aircraft company and requested them to redesign a three-wheel automobile which he called the 1 ‘ Californian. ’ ’ He was without funds to employ the engineers and had not at that time made any investment whatsoever in his prospective enterprise. Prior to August, 1947, the engineers dismantled the “Californian” for the purpose of assembling engineering data. During the last named month, appellant organized the Davis Motor Car Company and established its headquarters in a building on Woodley Avenue in Van Nuys. The company had no equipment, was without capital, without manufacturing experience and without a definite design for the building of the three-wheel automobile. However, appellant caused lines to be painted on the floor of the building to simulate assembly lines which might inflame the imagination of prospects who would come to purchase territorial franchises for the sale of the car. The selling campaign commenced August 6, 1947. Sales were made to the several parties named in the indictment. In each instance of the 23 verdicts included in the judgments here on appeal, the sales were induced by appellant’s false statements, promises and representations which were relied upon by the purchasers.

Appellant stated to Messrs. Eagan and Wiley (Count 1) that the engineering on the car was complete; that he was ready to commence building the three-wheel car; that he had a contract with Hercules Motor Company for motors; war contractors would build the parts and appellant would assemble them; that about the first of 1948 Eagan wotdd have a car to show on his floor and soon thereafter cars would be “running out of his ears.” Belying upon such statements, Eagan and Wiley paid appellant part of the purchase price for a franchise for the three cities of Glendale, Montrose and Burbank. Thereupon Eagan leased a building for the operation of Ms business for two years at a monthly rental of $300,

Having read an advertisement in a San Francisco paper about the three-wheel automobile, the witnesses Straub and Gregory visited the plant of the Davis Motor Car Company in September, 1947, where appellant told Straub that he had put $150,000 of his own money into the business; that he was drawing nothing from it; that no one would receive a cent until the ear was produced; that the plant would be producing *289 cars at the rate of 50 a day in from 30 to 90 days; that he had contracts for Hercules motors and contracts with airplane companies for aluminum panels. In reliance upon such statements of appellant on three separate occasions they paid him $500, $1,000 and $1,500 (Counts 2, 3 and 4) as payment for a franchise for Petaluma, Sonoma and Napa counties.

In order to induce the witness Paige to purchase a franchise, appellant made substantially the same statements he had made to Gregory, Straub and Eagan, and stated that the car would be built by having the various subcontractors ship the parts to the plant at Van Nuys where they would be assembled ; that they would make 10 models before January, 1948; that thereafter the company would get into production at the rate of 50 cars per day; that Paige would have cars for sale by the first of the year; that moneys paid for franchises would be used to produce the car. While relying upon such statements of appellant, Paige paid Mm $1,500 in September on a franchise for Marin County and thereupon leased a showroom for two years as a salesroom for the three-wheel automobile. In February, Paige paid appellant the first installment of the price of a franchise on Alameda County. Thereafter while still relying upon the same statements which appellant had made to him, he made the final payment of $1,800 on March 3. (Counts 5, 6, 7.)

In September, 1947, the witness Decker accompanied by his friend Looschen (Counts 8 and 9) visited the plant of the Davis Motor Car Company where they engaged appellant in conversation with respect to the outlook for the three-wheel automobile, the method of financing and expenditures of the money. At that time appellant stated that the franchise money was to be used for the production of the “Californian”; that Hercules Motor Company would supply the motors at the rate of 50 per day; that the company would commence with the production of 200 cars a month; and thereafter increase to one thousand monthly; that if Decker and Looschen would purchase a franchise, they would receive their first shipment of the automobiles within 60 days. Thereupon the two investors together, believing in and relying upon appellant’s statements paid Mm $500 as part payment on a franchise for the Santa Monica area. The second payment of $1,000 was made in November.

In September, 1947 Harold Libby (Count 10), a minor and a student at Fresno State College, read of the three- *290 wheel car and visited the Davis plant. In August, 1947, appellant told Libby that he had commenced work on the automobile prior to 1942; that within from 30 to 90 days the company would be producing at the rate of 50 cars per day; that to make possible such production, appellant stated that 150 subcontractors in the Los Angeles area were making parts which would be assembled at the plant in Van Nuys; that the engineering was practically completed and plans were ready for production; that it had received approximately 150,000 miles of testing and had stood up under all conditions. In reliance upon such statements, Libby paid appellant on behalf of himself and his wife, $1,500 as part of the $5,000 purchase price for a Fresno franchise.

In October the witness O’Hara (Counts 12 and 13) visited with appellant at his office in Van Nuys. The latter told him that the engineering on the automobile had been completed; that he had a contract with the Hercules Motor Company to supply him with 250 engines to start with; that he had contracts duly executed with various companies to manufacture the parts; that he would produce 50 cars daily beginning January, 1948, by assemblying the parts at the plant; that production will be increased to one thousand a week when the crew became experienced; that he had a machine on the way to make body panels; that every penny was being put into a fund for the production of the car, that if he purchased a franchise, O’Hara would get cars in January, 1948. While relying upon such statements of appellant, O’Hara paid him $2,500 in October as part payment on a franchise for Santa Ana and on January 16 paid him $2,250 to complete the purchase.

The witnesses Evans and Zeravica (Counts 14, 15, 16) visited appellant at his plant in October, 1947. Evans was a hay-bailer and Zeravica was a rancher. Appellant told Evans that if they purchased franchises, they would have a car by January, 1948; that thereafter the ear would be in production at the rate of 50 a day, increasing to an output of 200 daily; that he had invested between $100,000 and $200,000 in the production of the automobile.

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Cite This Page — Counsel Stack

Bluebook (online)
246 P.2d 160, 112 Cal. App. 2d 286, 1952 Cal. App. LEXIS 1019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-davis-calctapp-1952.