Vaughn v. Certified Life Insurance

238 Cal. App. 2d 177, 47 Cal. Rptr. 619, 1965 Cal. App. LEXIS 1128
CourtCalifornia Court of Appeal
DecidedNovember 17, 1965
DocketCiv. 28760
StatusPublished
Cited by15 cases

This text of 238 Cal. App. 2d 177 (Vaughn v. Certified Life Insurance) 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
Vaughn v. Certified Life Insurance, 238 Cal. App. 2d 177, 47 Cal. Rptr. 619, 1965 Cal. App. LEXIS 1128 (Cal. Ct. App. 1965).

Opinion

ROTH, P. J.

On September 25, 1963, appellant Carl Vaughn filed suit in the superior court against respondent Certified Life Insurance Company for actual and punitive damages.

*179 After two demurrers by respondent 1 were sustained, appellant filed a second amended complaint in two counts.

Appellant in his first cause of action, in the form of a common count, alleges that on or about October 3, 1961, respondent became indebted to him in the sum of $128.25, which money was “an agreed price” paid to respondent as a premium on a certain hospital and medical expense insurance policy, and that no part of it has been paid to him. There is no allegation nor is there any legal implication from the allegations which are made that there was an agreement to repay. The third paragraph alleges that respondent acted fraudulently and maliciously in taking appellant’s money and refusing to honor the terms of the policy, and asks for punitive damages in the amount of $50,000. The trial court sua sponte struck the third paragraph and sustained the demurrer on the ground it had no jurisdiction and it stated no cause of action.

Appellant’s second cause of action more fully sets forth the circumstances of the suit and sounds in fraud.

It is alleged that: on or about October 3, 1961, respondent sold appellant a Hospital and Medical Expense Insurance Policy for a certain specified premium; said policy included an elimination rider which excluded all payments “for loss incurred by such person resulting directly or indirectly, wholly or partly from any injury to or disease of my spine or operation therefor”; on or about February 16, 1962, appellant was injured in a traffic accident, and as a result thereof incurred hospital-medical expenses in the amount of $763.18; thereafter appellant made a claim to respondent for payment of the bills, but the respondent refused to honor the claim on the grounds of the elimination rider “when in fact, the injuries so suffered by the Plaintiff were to the muscles, ligaments and tendons of the back, and not to the bony spine proper, as the [respondent] well knew at the time of refusing Plaintiff’s claim. ’ ’

Appellant refers to “said representations” many times in his second cause of action but nowhere directly states what those representations were. In paragraph VI he alleges in part: “. . . that said representations were false and fraudulent in the following particulars:

*180 “(a) The Defendants, and each of them, in fact informed Plaintiff that said Elimination Rider attached to said Policy was intended by them to eliminate from Policy coverage only injuries to the bony spine proper, and that any injuries to the muscles, ligiments [s-ic] and tendons of the back would be covered under said policy and not subject to the elimination rider portion of said policy. 1C if

Appellant further alleges that he relied on the representation and would not have entered the contract had he known of its fraudulent nature; that he has been damaged in the amount of $128.25 for the premium, and $763.18 for hospital and medical expenses; and that he is entitled to punitive damages of $50,000.

Respondent’s general and special demurrer to the second amended complaint was sustained with leave to amend in 20' days.

Appellant’s motion to reconsider was denied and upon respondent’s motion to dismiss the complaint and each count thereof, appellant having failed to amend within the time required or at all, judgment was entered. Prom this judgment this appeal is taken.

Appellant has failed to state a cause of action either in common count or in fraud. When a plaintiff is given the opportunity to amend and elects not to do so, the pre: sumption is that he has stated as strong a case as he can. In such a situation, strict construction is required. (Lucas v. Roberts, 201 Cal.App.2d 365, 366 [20 Cal.Rptr. 23]; Melikian v. Truck Ins. Exchange, 133 Cal.App.2d 113, 115 [283 P.2d 269]; Curci v. Palo Verde Irrigation Dist., 69 Cal.App.2d 583, 585 [159 P.2d 674].) When the circumstances are such as in the ease at bench, if the complaint is objectionable on any ground, the judgment of dismissal must be affirmed. (Totten v. Underwriters at Lloyd’s London, 176 Cal.App.2d 440, 442 [1 Cal.Rptr. 520].)

Historically, the common count derives from the writ system of the common law. (Philpott v. Superior Court, 1 Cal.2d 512, 518 [36 P.2d 635, 95 A.L.R. 990].) It is based upon an archetypical legal relationship, pleaded as a general conclusion of law, from which the plaintiff’s right to the relief he seeks is derived. 2 However liberal the rules permit *181 ting common counts may be, there must be some certainty in respect of the obligation a plaintiff seeks to enforce. It is settled in California that a common count, to be sufficiently pleaded, must state not only the indebtedness of the defendant but also directly or impliedly the relationship or the express or implied legal principle upon which a promise to plaintiff is predicated. Nothing is alleged in Count I which expressly or impliedly creates an obligation to repay anything to appellant. (Fox v. Monahan, 8 Cal.App. 707, 709-710 [97 P. 765]; Bouey v. Porterfield, 96 Cal.App. 674, 680 [274 P. 766]; Smith v. Bentson, 127 Cal.App. Supp. 789, 794 [15 P.2d 910].)

In Smith v. Bentson, supra, the court says at page 794: “. . . [A] complaint is not good as a common count unless it either expressly alleges a promise by the defendant to pay or alleges facts from which such a promise is implied by law. ’ ’ In the case at bench there is no allegation sufficient to show an implied-in-law contract to repay. Indeed, the allegation that the money was paid as an agreed premium for an insurance policy indicates that the respondent has a right to retain the money; Where the money is paid by one person to another, the presumption is that it was due the latter (Code Civ. Proc., § 1963, subd. 7; Fox v. Monahan, supra, at p. 710), and private transactions are presumed to have been fair and regular (Code Civ. Proc., § 1963, subd. 19; Van Fossen v. Yager, 65 Cal.App.2d 591, 595 [151 P.2d 14]).

We conclude, therefore, that appellant has failed to state a cause of action in common count.

The case of Lesperance v. North American Aviation, Inc.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(PS) McCray v. McDuffie
E.D. California, 2022
Stansfield v. Starkey
220 Cal. App. 3d 59 (California Court of Appeal, 1990)
Sarro v. Retail Store Employees Union
155 Cal. App. 3d 206 (California Court of Appeal, 1984)
Flynn v. Higham
149 Cal. App. 3d 677 (California Court of Appeal, 1983)
Logan v. Southern California Rapid Transit District
136 Cal. App. 3d 116 (California Court of Appeal, 1982)
Mitchell v. National Automobile & Casualty Insurance
38 Cal. App. 3d 599 (California Court of Appeal, 1974)
Gruenberg v. Aetna Insurance
510 P.2d 1032 (California Supreme Court, 1973)
Hiemstra v. Huston
12 Cal. App. 3d 1043 (California Court of Appeal, 1970)
Perez v. G & W Chevrolet, Inc.
274 Cal. App. 2d 766 (California Court of Appeal, 1969)
Oakes v. EI Du Pont De Nemours & Co., Inc.
272 Cal. App. 2d 645 (California Court of Appeal, 1969)
People Ex Rel. Pub. Utilities Comm'n v. City of Fresno
254 Cal. App. 2d 76 (California Court of Appeal, 1967)
Sierra Investment Corp. v. County of Sacramento
252 Cal. App. 2d 339 (California Court of Appeal, 1967)
Straughter v. Safety Savings & Loan Assn.
244 Cal. App. 2d 159 (California Court of Appeal, 1966)

Cite This Page — Counsel Stack

Bluebook (online)
238 Cal. App. 2d 177, 47 Cal. Rptr. 619, 1965 Cal. App. LEXIS 1128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaughn-v-certified-life-insurance-calctapp-1965.