Weissbaum v. Eibeshutz

294 P. 396, 211 Cal. 170, 1930 Cal. LEXIS 318
CourtCalifornia Supreme Court
DecidedDecember 24, 1930
DocketDocket No. S.F. 10819.
StatusPublished
Cited by7 cases

This text of 294 P. 396 (Weissbaum v. Eibeshutz) 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
Weissbaum v. Eibeshutz, 294 P. 396, 211 Cal. 170, 1930 Cal. LEXIS 318 (Cal. 1930).

Opinion

SEAWELL, J.

This action was brought to enforce payment on an overdue promissory note in the sum of $2,500 made by defendant to the order of plaintiff. Defendant, while admitting the execution, delivery and nonpayment of the note, by way of answer and cross-complaint, alleged in defense that no consideration had been given for the note, and that its execution and delivery had been secured through the fraud of plaintiff, the circumstances of which will more completely be set forth later in this opinion. On the issue thus formed the case proceeded to trial before the court sitting without a jury, a jury having been waived. As is usual in such fraud cases, during the course of the trial two diametrically opposed stories were narrated by the opposing parties, only one of which could be true. The trial judge believed the story of defendant, and accordingly made its findings of fact and conclusions of law in her favor. Prom the judgment entered thereon plaintiff prosecutes this appeal. The main ground of the appeal is that the findings are not supported by the evidence.

It is too well settled to require citation of authority that if the findings of the trial court are supported by any substantial evidence not inherently improbable they will not be disturbed on appeal. We are of the view that the findings in this case may, by a liberal indulgence of the rule, be held to be supported by the evidence. Much of appellant’s arguments go to the weight of the evidence, but that was a matter for the trial court and not an appellate court, and we cannot disturb its findings unless, as a matter of law, the evidence is wholly lacking in that respect. Each party was the chief witness in his or her own behalf, with but slight corroborating evidence of a conclusive character sustaining either.

The story, largely as told by respondent, was that in 1920 she was a widow, deriving her sole income from a valuable apartment house inherited from her former husband. She *172 testified that she possessed little or no business experience. She was acquainted with one B. J. Klarman, president of the Morning Star Mining Company, who, it appears, was closely associated with appellant in various deals. Klarman tried without success to sell some stock in the mine to respondent. In April of 1920 Klarman introduced appellant to respondent, and from that time on appellant was a very frequent visitor. He, almost immediately, tried to sell her some Morning Star stock, but she refused to buy. After ingratiating himself into respondent’s good graces, appellant tried in various ways to secure control of respondent’s property. On one occasion appellant asked respondent to place all of her valuables in his safe deposit box; on other occasions he wanted her to put her real property in his name; and on still another occasion, he importuned respondent to place her automobile in his name, all of which respondent refused to do.

After being unsuccessful in interesting respondent in the Morning Star Mine, appellant, as related by respondent, then told her that he was very much interested in the company and was installing machinery in its mine; that he was in on the ground floor; that he wanted to buy some capital stock in said company, but could not have it issued to him directly at that time; that for various reasons he did not want it known that he was the owner of said stock; and for those reasons he asked respondent to take it in her name for him. This she agreed to do.

On the morning of June 1, 1920, appellant called at respondent’s residence and delivered to her his check for $2,500, with which to purchase for him 500 shares of the Morning Star stock. Respondent suggested that appellant should have a receipt for the money, and started to prepare one, but appellant handed her a blank form of note, representing it to be a receipt. Respondent could write without glasses, but could not read. Not having her glasses with her, she signed and delivered the document, believing that it was a receipt. Respondent had never in her life borrowed money, nor had she ever seen or signed a promissory note before. Appellant and respondent then proceeded immediately to the office of the Morning Star Mining Company, where respondent asked for and received appellant’s stock, *173 the certificate being made in respondent’s name. It appears that the corporation at that time had no treasury stock available for sale, and in all probability the stock purchased was the stock of Klarman. Respondent then placed the stock in her safe deposit box. She frequently offered to return this stock to appellant if he would return her “signature”, but appellant kept putting her off from time to time. Appellant then attempted to secure respondent’s consent to marriage, but respondent refused all such offers. Finally appellant threatened that unless respondent married him he would sue on the note. Finally, in April of 1922, shortly before respondent was married to her present husband, appellant made his first demand for payment. Until then respondent did not know she had signed a note, nor had appellant referred to it as such.

Respondent at all times has held the 500 shares of stock in question for appellant and has been and now is willing to deliver the same to appellant upon return to her of the document which she signed on June 1, 1920.

Based on this testimony, the trial court found that respondent signed the note under the belief that it was a receipt ; that there was no consideration for the note; that the agreement was that respondent was to use the $2,500 to buy stock for appellant and hold the same in trust for him; that the consent of said respondent to the execution of the note was secured by fraud in the manner set forth, supra.

Appellant stresses the fact that in the original answer and cross-complaint the defense of fraud based on the idea that the alleged note was a receipt was not set forth, nor did respondent mention this fact on the taking of her deposition. The record shows that this theory was first set forth in the amended answer -filed about eleven days before trial. Appellant contends that these facts conclusively prove the receipt theory to be false, and, therefore, the entire story of respondent must fall. In this we cannot agree. The appellant introduced the original pleadings into evidence for impeachment purposes, and this he had a right to do. (Williams v. Seiglitz, 186 Cal. 767 [200 Pac. 635].) In that case it was directly held that an abandoned pleading may be used for impeachment purposes by showing prior *174 inconsistent statements. The trial judge admitted such pleadings in evidence for the above purposes, but after hearing all the evidence and observing the demeanor and character of the witnesses and parties, he credited the story set forth in the amended answer. The question as to the weight to be given to the impeaching testimony was one peculiarly within the province of the trial court, and its determination under the circumstances cannot be disturbed.

Moreover, even if there were any merit in appellant’s contention in this regard, which there is not, it would avail him but little. The rule is well settled that in regard to a finding of fraud, such finding will be sustained if there is evidence supporting one material fraudulent representation, even though the evidence fails as to all others. In Beeman v. Richardson,

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Bluebook (online)
294 P. 396, 211 Cal. 170, 1930 Cal. LEXIS 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weissbaum-v-eibeshutz-cal-1930.