People v. One 1940 Ford V-8 Coupe, Engine No. 18-5601077

224 P.2d 677, 36 Cal. 2d 471, 1950 Cal. LEXIS 262
CourtCalifornia Supreme Court
DecidedDecember 15, 1950
DocketL. A. 21572
StatusPublished
Cited by51 cases

This text of 224 P.2d 677 (People v. One 1940 Ford V-8 Coupe, Engine No. 18-5601077) 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. One 1940 Ford V-8 Coupe, Engine No. 18-5601077, 224 P.2d 677, 36 Cal. 2d 471, 1950 Cal. LEXIS 262 (Cal. 1950).

Opinions

SHENK, J.

The State has appealed from a judgment in favor of Bank of America National Trust and Savings Association in a proceeding for the forfeiture of an automobile pursuant to the State Narcotics Act (Health & Saf. Code, § 11610 et seq.).

Notice of seizure and intended forfeiture proceedings was served on Nick G. Chronis, the registered owner of the designated Ford automobile, on Frank John Chronis, who is Nick’s brother, and on the bank, based on an alleged unlawful transportation and possession of narcotics by Frank John Chronis while he had the use of the vehicle. Neither Nick nor Frank answered the notice. The bank filed an answer alleging that it was the legal owner of the vehicle and the holder of a conditional sales contract dated in August, 1948, on which the balance remaining unpaid was $467.92.

Section 11610 of the Health and Safety Code provides that a vehicle used as charged in the notice shall be forfeited to the state. Section 11620 provides that the claimant of any interest in the vehicle may “prove” that his lien or conditional sale contract was bona fide “and” that his interest was created after a reasonable investigation of the moral responsibility, character, and reputation of the purchaser and without any knowledge that the vehicle was being or was to be used for the unlawful purpose.

Section 11622 requires that in the event of “such proof” the vehicle shall be released to the lien claimant if the value is no greater than the lien, otherwise (§ 11623) it shall be sold and the proceeds distributed (§ 11625) first to satisfy the amount due the lien claimant.

[473]*473The evidence as to the violation and of Frank’s use of the automobile with Nick’s consent is undisputed. Nor is it questioned that at the time its interest was created the bank was without knowledge that the vehicle was being or was to be used for the unlawful transportation or concealment of narcotics. The only ground of the appeal relates to the correctness of the findings of the trial court in respect to investigation prior to the creation of the bank’s interest.

In its answer the bank did not allege that a reasonable or any investigation was made pursuant to section 11620. At the trial the bank sought and over objection was allowed to introduce evidence to prove that an investigation made at the time of the creation of the lien would have shown that Nick was a person of moral responsibility and of good repute. For this purpose Nick and his mother took the stand. From the mother’s testimony it appeared that Nick and Frank were aged respectively 23 and 17 years; that Nick was of good moral character; that his reputation in the community for truth, honesty and integrity was good; and that the mother would have given such answers in an investigation had one been made at the time the lien was created. Both Nick and the mother testified that they had no knowledge of Frank’s use of or traffic in narcotics.

The trial court found that the bank did not make any investigation of the moral responsibility, character and reputation of the registered owner; that the moral responsibility, character and reputation of Nick Chronis was good at the time of the creation of the bank’s interest; but that such fact was not known to the bank before or at the time its interest was created. As support for the judgment in the bank’s favor the court applied the provision of section 3532 of the Civil Code that the law neither does nor requires an idle act.

The State contends that error occurred in admitting the evidence objected to and that the judgment is not supported by the findings and conclusion.

Prior to 1933 there was no exception favorable to a lien claimant in the provisions for forfeiture of the vehicle when unlawfully used in the transportation or concealment of narcotics. (Stats. 1929, p. 380, § 15 at p. 388.) In 1933 section 15 was amended to except the lien claimant’s interest from the forfeiture when there was proof of the prior reasonable investigation and other factors as required by the present code provisions.

It is conceded that there is no case holding that where no [474]*474prior investigation' has been made the lien claimant’s interest has been protected on the basis that if an investigation had been made it would have shown moral responsibility, good character and reputation on the part of the purchaser. On the contrary it has been held uniformly that a reasonable investigation prior to the creation of the lien must be proved with the other elements in order to save the lien claimant’s right when the interest of the purchaser or registered owner is forfeited. The statutory provisions require a reasonable investigation prior to the creation of the lien as one of the elements which must be proved before the court is permitted to release the claimant’s interest from the forfeiture.

In People v. One Harley-Davidson Motorcycle, 5 Cal.2d 188 [53 P.2d 970], a judgment for the lien claimant was reversed where there had been no investigation of the purchaser’s moral character and reputation and the only inquiry was to ascertain whether he was employed. That case was relied on in People v. One Ford V8 Tudor Sedan, 12 Cal.App.2d 517 [55 P.2d 908], to reverse a judgment for the lien claimant where no investigation was made.

In People v. One Pontiac 8 Sedan, 22 Cal.App.2d 503 [71 P.2d 302], a judgment adverse to the lien claimant was affirmed where no investigation had been made. The court rejected the claimant’s contention that it was not required to prove the investigation unless the State produced evidence that such an investigation would have developed knowledge of the intended illegal use. On the authority of the Harley-Davidson and other cases it was held that the Legislature placed upon the lien claimant the burden of proof as to the elements conjunctively enumerated in the statute; that in the absence of such proof the trial court properly found against it; that although forfeitures are not favored and statutes are strictly construed against them, the language leaves no room for construction and the court could not rewrite the clear provisions under the guise of construing them. In reliance on that reasoning the court in People v. One LaSalle Four Door Sedan, 23 Cal.App. 2d 237 [72 P.2d 766], rejected a contention that the claimant was not required to prove an investigation in the absence of the State’s production of evidence that by such reasonable investigation facts could have been discovered which would put a prudent person on inquiry as to the possible unlawful use of the automobile; and reversed the judgment for the claimant. (See, also, People v. One 1936 Pontiac 6 Four Door Sedan, 28 Cal.App.2d 410 [82 P.2d 706].) Again in People [475]*475v. One 1939 Buick 8 Coupe, 43 Cal.App.2d 411 [110 P.2d 1013], where judgment for the lien claimant was reversed, it was held that the burden of proving the fact and the extent of the investigation was upon the lien claimant. It was said that because of the public interest in the character of the purchasers of automobiles the proof was insufficient where the investigation was no more than would have been done if the contract had been for the purchase of a piano or a refrigerator.

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Bluebook (online)
224 P.2d 677, 36 Cal. 2d 471, 1950 Cal. LEXIS 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-one-1940-ford-v-8-coupe-engine-no-18-5601077-cal-1950.