Phenegar v. Paolini

149 P. 1008, 27 Cal. App. 381, 1915 Cal. App. LEXIS 59
CourtCalifornia Court of Appeal
DecidedMay 10, 1915
DocketCiv. No. 1351.
StatusPublished
Cited by6 cases

This text of 149 P. 1008 (Phenegar v. Paolini) 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
Phenegar v. Paolini, 149 P. 1008, 27 Cal. App. 381, 1915 Cal. App. LEXIS 59 (Cal. Ct. App. 1915).

Opinion

HART, J.

The plaintiff, as a judgment creditor of the defendant, E. Desperati, originally proceeded in this action by way of a creditor’s bill for the purpose of obtaining a decree declaring void and setting aside a transfer by the latter to the defendant, Marchetti, of certain notes and mortgages upon the ground that said transfer had been made with the intent to defraud the plaintiff of his claim against the said defendant, Desperati.

The third amended and supplemental complaint, upon which, with the answers thereto and a cross-complaint, by the defendant, Marchetti, the present action was tried, was filed after the plaintiff had obtained a judgment against Desperati upon the claim held by the former against the latter and after execution had thereupon been issued and levied upon the notes and mortgages in question, the latter sold by the sheriff under said execution and the proceeds of said sale applied toward the satisfaction of the plaintiff’s judgment.

The object of the present action is in effect to secure a judgment quieting plaintiff’s title to the notes and mortgages in dispute.

*383 It appears from the complaint, that Desperati, in September, 1908, “and at all times thereafter,” was indebted to the plaintiff in the sum of $1,826.28, and that the plaintiff, on March 14,1911, brought an action against Desperati to recover said sum, in the superior court of Fresno County, recovering judgment in the sum so sued for on the twenty-fourth day of August, 1911.

Departing now from the order in which the facts are stated in the complaint, these may here be stated:

The defendant, Desperati, prior to the time at which the notes and mortgages in dispute were transferred, had been convicted of the crime of grand larceny in the superior court of Fresno County, and judgment of sentence thereupon pronounced against him. He, however, took and prosecuted an appeal to the court of appeal from the judgment of conviction and was by the trial court admitted to bail, pending the determination of said appeal. He subsequently gave said bail, the defendants, P. R Paolini and A. G. Leverone, becoming sureties thereon. At and prior to this time Desperati was the owner of two certain tracts of land which are situated in Fresno County and specifically described in the complaint. The title to both these tracts of land, on the thirtieth day of March, 1910, stood in the names of and was held by the defendants, Paolini and Leverone, but, so the complaint alleges, “neither of said defendants at any time had any interest therein save as trustees only for the benefit of said B. Desperati.”

On September 19, 1910, Desperati, acting through his said trustees as aforesaid, sold one of said tracts of land to one Adolfo Pierini and the other to one Guido Dami and executed deeds to the said grantees, respectively, to said tracts of land. As a part of the purchase price of the land so purchased by Pierini, the latter executed and delivered to Paolini and Leverone his three several promissory notes, each being dated September 19, 1910, and payable as follows: The first, for $1,176.66, on the first day of October, 1914; the second, for $1,176.66, on October 1, 1915, and the third, for $1,476.66, on October 1,1916, each of said notes providing for interest at the rate of seven per cent per annum and all secured by a mortgage upon the land sold to Pierini. Dami, who purchased the tract of land secondly described in the complaint, as a part of the purchase price thereof, on the date of the transfer, like *384 wise executed and delivered to Paolini and Leverone his three several promissory notes for five hundred and seventy-five dollars each, due and payable October 1, 1914, October 1, 1915, and October 1, 1916, respectively, each bearing interest at the rate of seven per cent per annum and secured by a mortgage upon the land so sold to him.

Both said mortgages were duly recorded in the office of the county recorder of Fresno County.

It is alleged in the complaint that, the said Paolini and Leverone having become sureties on the bail bond of Desperati, as above explained, Desperati authorized and caused each of said notes and mortgages to be made and the same were made and taken in the names of said bondsmen (Paolini and Leverone) as payees and mortgagees thereof, “instead of in the name of E. Desperati, the real owner thereof”; that the defendants, Paolini and Leverone, “at all times held the same in trust for said Desperati to indemnify themselves against any liability upon said bail bond as hereinbefore alleged and not otherwise.”

On October 3, 1910, so the complaint declares, Paolini and Leverone, acting under instructions and by the direction of Desperati, “and not otherwise,” indorsed all the notes above mentioned in blank and prepared and executed an assignment of the mortgages given to secure said notes to the defendant, Frank Marchetti, and thereupon deposited in the Bank of Central California, as depositary, the said assignment together with the notes and mortgages, with instructions to said bank to deliver the same to said Marchetti whenever and in the event that the judgment of conviction of grand larceny against Desperati was reversed by the district court of appeal, to which an appeal from said judgment had been taken, and the sureties on the latter’s bail bond, Paolini and Leverone, were thereupon released and discharged from the obligations of said undertaking.

Prior, however, to the decision by the appellate court in the criminal case against Desperati and before the sureties were released from the obligations of said bail bond and consequently before the delivery of the notes and mortgages under the assignment to Marchetti, said notes and mortgages were, as before stated, seized by the sheriff under the writ of execution issued upon the judgment obtained by the plaintiff in the action above referred to and, after due proceedings, sold by *385 that officer to the plaintiff, who paid therefor the sum of $1,505.00, which sum was by the sheriff credited on said judgment.

The complaint charges that the purported assignment of the notes and mortgages to Marchetti was executed without any consideration and that it was made by Paolini and Lever-one, under the express direction of Desperati, with the fraudulent intent on the part of all the defendants and for the sole purpose of placing said notes and mortgages beyond the reach of the claim of the plaintiff against Desperati and to prevent the plaintiff from securing satisfaction of said claim.

The complaint further alleges that, notwithstanding the ownership of said notes and mortgages by the plaintiff, the defendants still claim ownership thereof on behalf of said Marchetti and ‘ ‘ obstruct and annoy the plaintiff in the possession and enjoyment thereof and do now prevent plaintiff from collecting the interest due upon said notes and mortgages, and said defendants, in pursuance of the design of all of said defendants to place said notes and mortgages beyond the reach of this plaintiff, claim ownership thereof in said Prank Marchetti by reason of said fraudulent assignment and do thereby jeopardize the title of this plaintiff in and to the same.”

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Bluebook (online)
149 P. 1008, 27 Cal. App. 381, 1915 Cal. App. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phenegar-v-paolini-calctapp-1915.