People v. Threestar

167 Cal. App. 3d 747, 213 Cal. Rptr. 510, 1985 Cal. App. LEXIS 2022
CourtCalifornia Court of Appeal
DecidedMay 1, 1985
DocketB003329
StatusPublished
Cited by5 cases

This text of 167 Cal. App. 3d 747 (People v. Threestar) 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. Threestar, 167 Cal. App. 3d 747, 213 Cal. Rptr. 510, 1985 Cal. App. LEXIS 2022 (Cal. Ct. App. 1985).

Opinion

Opinion

ARGUELLES, J.

Ben Nazareth Threestar (appellant) appeals from the judgment entered following a jury trial in which he was convicted of grand theft with imposition of an additional one year term for taking in excess of $25,000 (Pen. Code, §§ 487, subd. 1, 12022.6, subd. (a)). 1

The two questions which we address in this embezzlement case are: (1) whether the trial court erred by failing to instruct the jury, sua sponte, on the affirmative defense set forth in section 511; and (2) whether the standard jury instructions on embezzlement, CALJIC Nos. 14.07 and 14.08 (4th ed. 1979), 2 correctly state the law with respect to embezzlement by an employee agent. Answering both questions affirmatively, we conclude that failure to instruct the jury sua sponte on all of the elements contained in section 511 was reversible error under the facts of this case, but that the standard embezzlement instructions set forth in CALJIC Nos. 14.07 and 14.08 properly stated the law of embezzlement applicable to the prosecution’s version of those facts.

Facts

In 1978, Barbara Tomlinson (Tomlinson) formed a corporation that was later known as Product Innovators (P.I.) to invent and market various products. She had previously patented three inventions in her own name and was somewhat familiar with the patent application process.

Within a year after the original corporation was formed, Tomlinson hired Manny Duran (Duran) and later appellant. Tomlinson and Duran had been working on a design for a stereo speaker stand and asked appellant to design an improved version of it.

*751 At about the same time, an attorney hired by Tomlinson was working on the corporate organization of P.I. so that Tomlinson, Duran and appellant would constitute the board of directors, occupy offices of secretary-treasurer, president and vice president, respectively, and be issued 100 shares of stock each. Tomlinson was to front the money necessary to start up the business; Duran was to promote, distribute and sell all P.I. products; and appellant was to help design, promote and sell P.I. products. Duran and appellant each were to be paid a salary of $2,000 per month.

Appellant conceived a design for the improved speaker stand and the attorney working on the corporation start-up referred appellant to another attorney, Francis Utecht, for a patent application. Utecht recommended that the patents obtained by appellant, as inventor, be assigned to P.I.

Shortly thereafter, Tomlinson advised Utecht by letter to proceed immediately with a patent application for the speaker stands. She told Utecht that the patent should be listed and registered in the P.I. name because P.I. was going to own it. By reply letter, Utecht advised Tomlinson that he understood the patents were to be assigned to P.I. as soon as P.I. was formed.

At the first P.I. board of directors meeting on April 25, 1978, Tomlinson, Duran and appellant discussed how the business operations of P.I. would be conducted. In regard to appellant, it was agreed that he would be responsible for inventing products, and that he would turn over products and patents to the corporation. As evidenced by the corporate minutes of the board meeting, appellant agreed to grant P.I. sole and exclusive license to use of his patents as long as P.I. was “solvent and existing.” Appellant’s signature, when obtained, was “deemed sufficient to grant said license.”

The business offices opened with only Duran and appellant involved in its day-to-day affairs while Tomlinson worked at another full-time job.

Appellant had Utecht submit a patent application for another speaker stand design that appellant claimed he invented, although Tomlinson argued that the design was the result of the combined talents of several people in the corporation.

Attorney Utecht subsequently advised P.I. in writing that appellant refused to execute any assignment for patents to the corporation until he had a written agreement with P.I. Although Tomlinson and Duran were upset by this, no further action was taken to resolve the matter.

After nine months of operation, P.I. had accumulated an inventory of speaker stands it had manufactured but had made no sales revenue. Tomlin- *752 son ceased paying salaries to Duran and appellant, closed P.I.’s business offices, and announced that she would take over as president. Tomlinson explained these actions in her testimony at trial as follows: “When I decided not to pay salaries any more and close the office down, then I didn’t feel that it was necessary to be paying salaries any more because there was no sales coming in. So everybody made their own arrangements to do their own thing, and I would still handle Product Innovators on my own. I became president then.” As for the others, Duran resigned and turned in his stock while appellant decided to open his own business to sell stereo cabinets and furniture under the name of Threestar Enterprises.

Tomlinson claimed at trial that she and appellant also entered into a business arrangement whereby appellant was to sell the P.I. speaker stands that had previously been manufactured on a percentage-of-sales commission basis.

Appellant had the speaker stands transferred with Tomlinson’s knowledge to a warehouse he had rented. Tomlinson believed that the speaker stands were the property of P.I.

Prior to the closing of the P.I. offices, appellant had been negotiating with a stereo components retailer for sale of the speaker stands. In fact, one sale was consummated with the retailer before P.I. closed its doors, netting P.I. $18,350.65. Tomlinson knew of this sale.

After the closure of P.I.’s business, however, and after appellant allegedly entered into the oral commission sales arrangement with Tomlinson, appellant represented to the retailer’s buyer that he was the sole representative for sale of the speaker stands, and that the speaker stands would no longer be associated with P.I., “past, present or future” because his relationship with P.I. had been severed, and he possessed all patent rights.

Additional speaker stands that had not been ordered by P.I. were shipped to appellant’s warehouse.

Appellant consummated four sales of speaker stands to the stereo retailer in the months of February, April, May and August 1979. The proceeds from these sales were approximately $87,000 of which he paid Tomlinson $21,000. Tomlinson was not informed about the April and May sales.

At trial, he claimed that the amounts paid to Tomlinson out of these sales were not pursuant to any commission sales agreement but rather constituted a voluntary effort to help her recoup her losses in the corporation.

*753 Appellant admitted to Tomlinson and her attorney in a meeting with them in the attorney’s office that, at one point, he altered one of the purchase orders that he previously had shown to Tomlinson to reflect a lower price and lesser quantity of stands sold in order to stifle her complaints to him for money.

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Cite This Page — Counsel Stack

Bluebook (online)
167 Cal. App. 3d 747, 213 Cal. Rptr. 510, 1985 Cal. App. LEXIS 2022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-threestar-calctapp-1985.