People v. Leonard

39 P. 617, 106 Cal. 302, 1895 Cal. LEXIS 604
CourtCalifornia Supreme Court
DecidedMarch 9, 1895
DocketNo. 21145
StatusPublished
Cited by30 cases

This text of 39 P. 617 (People v. Leonard) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Leonard, 39 P. 617, 106 Cal. 302, 1895 Cal. LEXIS 604 (Cal. 1895).

Opinion

Searls, C.

The appellant, H. M. Leonard, was convicted of the crime of embezzlement, and adjudged to suffer imprisonment in the state prison for the term of three years.

He appeals from the judgment, from an order denying his motion for a new trial, and from an order refusing to arrest the judgment. The indictment avers that the defendant, on the eighth day of May, 1893, at the county of Santa Clara, state of California, was “ an officer, manager, and servant of the Bank of Santa Clara, a corporation duly created, organized, and existing under and by virtue of the laws of the state of California.”

The indictment then proceeds to charge in apt and usual language that there came into the hands of said defendant as such officer, etc., the sum of eight thousand three hundred and eighty-four dollars and seventeen cents, which he then and there feloniously appropriated to his own use, etc.

The first specification of error by appellant relates to the modification of an instruction asked by defendant and given with an addition made thereto by the court on its own motion.

The instruction is as follows:

[308]*308I instruct you that, in order to sustain the charge herein, the prosecution must prove beyond a reasonable doubt—that is, to a moral certainty—that the Bank of Santa Clara County was, at the time of the alleged offense, a corporation duly formed, organized, and existing and doing business under the laws of the state of California, and doing business at Santa Clara, in this state; and that on the eighth day of May, 1893, and before that date, that the defendant was the manager or servant of said Bank of Santa Clara County, and as such manager or servant had during that time in his possession, or under his control, the moneys belonging to said corporation mentioned in the indictment.” The court gave this with the following modification, to wit: But, if you find from, the evidence that the persons named in the certificate of incorporation given in evidence, organized as a corporation and entered upon the business named in the certificate, and that they and their successors continued to conduct business as a banking corporation, under the name of the Bank of Santa Clara County, until after the eighth day of May, 1883, then I instruct you that, for the purpose of this case, the Bank of Santa Clara County was at the time of the alleged offense a corporation duly formed, organized, existing, and doing business.” To which modification of said defendant’s requested instruction defendant then and there duly excepted.

It will be observed that the instruction as asked by the defendant involved, as an essential element, the necessity of a legally organized corporation, that it should be, in the language of the instruction, “a corporation duly formed, organized, and existing, and doing business at Santa Clara, in this state.”

The addition to the instruction in effect informed the jury that a de facto corporation, if they found such to exist, was for the purposes of the case sufficient. It is proper to a correct understanding of the question to say that the prosecution offered in evidence articles of incorporation of “ The Bank of Santa Clara County,’’ [309]*309duly executed and filed on the twenty-eighth day of May, 1875.

To the introduction of such articles of incorporation counsel for defendant objected, upon the ground that they were incompetent, irrelevant, and immaterial, and inadmissible.

After much argument, during which it appeared that the alleged defect consisted in the omission from the articles of the requirements of the seventh provision of section 290 of the Civil Code, by failing to state the amount of the capital stock subscribed and by whom.

A long argument seems to have occurred over the question, during which the court below expressed the opinion that the articles were insufficient to constitute a corporation de jure, but that while defective they might be introduced as one step in the proofs of the existence of a corporation de facto. The objection was thereupon overruled, the articles admitted in evidence, and proof was thereafter received tending to show that the bank acted and did business as a corporation, and defendant acted as a director, manager, and agent thereof. The fact was that in 1875, when the articles of incorporation of the Bank of Santa Clara County were executed and filed, the statute did not require a statement in such articles of the number of shares subscribed, or by whom. (Amendment to Codes, 1873-74, p. 816.) Section 290 of the Civil Code was again amended in 1876, so as to include the clause to which we have referred. (Amendments to Codes, 1875-76, p. 70.)

Counsel and the court overlooked the fact of these changes in the code, and the cause was tried upon the theory that the corporation was never legally organized. The error in this respect consisted in improperly sustaining the objection made by counsel for defendant, and he should not be heard to complain.

There being evidence to sustain the instruction as modified, it was proper to give it in any event.

It has repeatedly been held that proof that a corpora[310]*310tion was acting as such is sufficient. (People v. Frank, 28 Cal. 507; People v. Hughes, 29 Cal. 258; People v. Schwartz, 32 Cal. 161; Oakland Gas etc. Co. v. Dameron, 67 Cal. 663.) It is also held in People v. Schwartz, supra, that, if the indictment avers that the company is a corporation, proof of the existence of the corporation de facto will support the averment.

To hold that one who has been an officer, agent, or servant of a company acting as a corporation can, upon discovering that by reason of some defect or oversight in incorporating the company has not become a corporation de jure, plunder its treasury, and go scot free, would be to offer a premium for wrongdoing. “In réason whenever a man claims to be a servant, while getting into his possession by force of this claim the property to be embezzled, he should be held to be such on his trial for the embezzlement. .... When a man has received a thing of another under the claim of agency he cannot turn round and tell the principal asking for the thing: Sir, I was not your agent in taking it, but a deceiver and a scoundrel.” (Bishop on Criminal Law, sec. 397; People v. Treadwell, 69 Cal. 226; Ex parte Hedley, 31 Cal. 108.)

Our Civil Code, section 358, has embodied the rule in the following words: “ The due incorporation of any company claiming in good faith to be a corporation under this part, and doing business as such, or its right to exercise corporate powers, shall not be inquired into, collaterally, in any private suit to which such de facto corporation may be a party; but such inquiry may be h,ad at the suit of the state on information of the attorney general.”

Appellant objects to the fourteenth instruction given by the court, as being in conflict with the instruction hereinbefore set out and given in a modified form.

This fourteenth instruction is too lengthy to be here set out in full. In it the court gives the definition of embezzlement, the nature of the charge against the de[311]*311fendant as specified in the indictment, and then proceeds as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
39 P. 617, 106 Cal. 302, 1895 Cal. LEXIS 604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-leonard-cal-1895.