People v. Jones

262 P. 361, 87 Cal. App. 482, 1927 Cal. App. LEXIS 82
CourtCalifornia Court of Appeal
DecidedDecember 12, 1927
DocketDocket No. 1486.
StatusPublished
Cited by53 cases

This text of 262 P. 361 (People v. Jones) 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. Jones, 262 P. 361, 87 Cal. App. 482, 1927 Cal. App. LEXIS 82 (Cal. Ct. App. 1927).

Opinion

SHAW, J., pro tem.

Appellant was tried on an information charging Mm with larceny and embezzlement of certain pipe belonging to Russell Oil Company, a common-law trust, *486 and after dismissal of the larceny count was found guilty of embezzlement.

The Russell Oil Company had an oil lease on certain land of one Carter, at Santa Fe Springs, California, hereinafter referred to as the Carter lease. On this lease were three oil wells equipped with casing and other appurtenances, all of which were owned by the said Russell Oil Company. The wells being out of production, Russell Oil Company, on September 8, 1925, made a contract with M. H. Murray, by which it granted to him the sole and exclusive right to operate these wells at his own expense, for doing which he was to have fifty per cent of the oil and gas produced, but no property interest in the equipment, and reserved the right to dispose of all equipment not actually being used by Murray. Claiming to act under this contract, appellant went into possession of the Carter lease in January, 1926, and attempted to operate the wells. During his operations some 4,500 feet of O^-inch casing was pulled from one of the wells, designated as No. 1, and was placed on racks. This work was done under the direction of Orville Pfeiffer, who was appellant’s superintendent on the lease, and was completed about June 22, 1926. On June 2'5, 1926, 771 feet of this casing was sold by Pfeiffer to Commercial Supply House, a dealer in such commodities at Long Beach, for $501. In this transaction Pfeiffer used the fictitious name of C. E. Williams and, by indorsing that name on a check, got the money. He deposited $450 of this amount in the Bank of Norwalk, which is near the Carter lease, in an account which he then opened in his own name. In the latter part of August, 1926, Russell L. Williams, who was acting for Russell Oil Company, learned that some pipe had been taken away from the Carter lease, and early in September he demanded of appellant and of Pfeiffer that it be returned or the value of it paid. He also told appellant that he would take the matter up with the authorities. A few days later, on Monday, September 13th, all but a few feet of the pipe were returned to the Carter lease. This was done by the procurement of Pfeiffer, who gave to Commercial Supply House a forged order in the name of Marland Oil Company for delivery of the pipe to a well at Huntington Beach, then had it hauled *487 by a truck to an abandoned well at Downey, and from there hauled by another truck to the Carter lease.

This transaction is the basis of the charge against appellant. Pfeiffer, who was also under a like charge, was a witness for the prosecution. He admitted upon the stand his above-mentioned acts, gave the details of his conduct in the matter, and testified that it was all done at the direction and under the orders of appellant; that he gave appellant $50 of the money received from the pipe in cash, and that appellant received the benefit of the remainder of it either as a credit on account of his indebtedness to Pfeiffer or as payment of bills for work done on the lease which were settled by Pfeiffer.

Appellant’s first contention is that if he was guilty of any offense it was larceny and not embezzlement. At the trial he made the contrary contention in moving for the dismissal of the larceny charge. However, that charge was dismissed on the motion of the district attorney, and there is no legal barrier to the assumption of such inconsistent positions by appellant. The theory of his argument here is that he was not entrusted by Bussell Oil Company with the casing in question, but came wrongfully into its possession. The above-mentioned contract made by Bussell Oil Company with Murray contained a clause that it should not be assignable without its consent. Appellant obtained assignments of this contract, but did not procure any express consent thereto by Bussell Oil Company, and apparently made no pffort so to do. However, he took possession of the lease and operated the wells, or at least attempted to put them into condition to operate, and expended money for that purpose, claiming the right to do this under the Murray contract and not otherwise. Bussell L. Williams, who represented Bussell Oil Company, testified that at the time the pipe was taken away they did not recognize the contract as a valid existing contract; that they never recognized appellant at any time, and that appellant was not the agent or servant of Bussell Oil Company, but that “the whole property was entrusted to M. H. Murray and anyone he might employ or have there”; that Murray had a right to use the equipment in the operation of the property, and that neither Murray, nor appellant, nor Pfeiffer, had any authority to sell any property of *488 Russell Oil Company. It was shown that appellant’s claim of right and his acts and expenditure of money on the lease were known to Russell Oil Company, and with such knowledge they suffered him to remain in possession of the lease and continue his operations thereon, without taking any steps to put him off until after the occurrences which gave rise to this case.

From these facts the jury might properly find that appellant was entrusted with the property of Russell Oil Company, including the casing in question. Under the circumstances, that company might well have been estopped from insisting upon that clause of the Murray contract which forbade assignments without their consent, or be held to have waived it. Such provisions are inserted in contracts for the benefit of the party whose consent is required, and, like all provisions of that kind, may be waived by such party. (Civ. Code, secs. 3268, 3513; 3 Cal. Jur. 240; 25 Cal. Jur. 929; Schnittger v. Rose, 139 Cal. 656, 661 [73 Pac. 449]; Frank v. New Amsterdam C. Co., 175 Cal. 293 [165 Pac. 927].) The contract in question is analogous to a lease, an assignment of which in violation of a covenant against assignments without the lessor’s consent is not void but carries the term. (15 Cal. Jur. 763; Schnittger v. Rose, supra; Potts Drug Co. v. Benedict, 156 Cal. 322, 327 [25 L. R. A. (N. S.) 609, 104 Pac. 432].) In such a case the lessor has a remedy by declaring and enforcing a forfeiture for the breach, but he may waive the forfeiture and allow the assignee to remain in possession, in which case the assignee holds under the lease and the assignment. The same rule must be applied to this contract. This disposes of appellant’s contention that the court erred in refusing to give the following instruction: “You are instructed that when a contract carries a clause forbidding assignment without written consent, an attempted assignment does not transfer any rights or liabilities unless it is accompanied by said written consent.” This is obviously erroneous.

Moreover, appellant assumed and claimed to be acting in a capacity which would make him a bailee for Russell Oil Company of all their casing and other equipment on the Carter lease. Having so acted and obtained possession of the property on that assumption, and Russell *489

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Bluebook (online)
262 P. 361, 87 Cal. App. 482, 1927 Cal. App. LEXIS 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-jones-calctapp-1927.