Haas v. Whittier
Haas v. Whittier
Opinion of the Court
This is an action brought to recover a sum of money, which the plaintiff, as assignee of an insolvent debtor., Edgar Sessions, claims should be paid him in his representative capacity by the defendants, W. F. Whittier et al., by reason of their having received from the insolvent, and-converted to their own use, certain goods delivered to them in satisfaction of a debt due the defendants by the insolvent.
The proposition upon which the plaintiff based his claim for a recovery is, that the defendants had received the property by a transfer made by the insolvent, with the intention of giving them a preference over his other creditors. The cause was tried before a jury, and they gave a general verdict for the plaintiff, but found “Ho” upon the special issues submitted to them. The special issues were: 1. At the time that Edgar Sessions transferred to Whittier, Fuller & Co. the goods described in the complaint, was he able to pay his debts from his own means as they became due ? 2. Was the transfer of said goods by Sessions to Whittier, Fuller & Co. made in the usual and ordinary course of business of said Sessions ? 3. Did Sessions make said transfer with a.
The defendants moved the court for a judgment in their favor, because the general verdict was not supported by the special findings under section 625 of the Code of Civil Procedure. The plaintiff made a motion for a new trial, and the court below considered the two motions together, refused that of the defendants, and granted that of the plaintiff, from which rulings this appeal is taken.
The real questions involved in the case are, whether the trial court was justified in believing, upon the evidence and contrary to the view of the jury, that the preference denounced by section 55 of the Insolvent Act had been given, and whether such errors of law had been committed on the trial as warranted a new trial. It would have been useless to have entered judgment for the defendants on the special issues found by the jury, •if the trial court had not considered the evidence sufficient to support the special findings of the jury, or had believed itself to have committed errors of law on the •trial; for immediately following the order for judgment •for defendants, the court would, by granting a new trial, have rendered the judgment inoperative.
The jury found, as it was proper they should under the evidence, that the transfer was not made in the usual and ordinary course of business. This, of course, made the transaction, prima facie, a preference, not allowed by section 55 of the Insolvent Act. But they also found, as we think justifiably, from the evidence, that neither of the parties .had, in fact, any intention to violate the law denouncing á preference' in favor of one creditor
The trutli is, he seems to have been very anxious to do the best he could for all his creditors. ■ The creditor had no ground to believe that the debtor intended to make any preference such as the law denounced.
The declaration of the insolvent and the agent of Whittier, Fuller & Co. are directly to the point that they did not have the least intention of preferring any creditor. i
The insolvent was a witness for the plaintiff in this action; he is contradicted in his material statements by no witness. And the evidence of both these witnesses was not, on this trial, given orally in the presence of the court, but was, by agreement, read from the
There was nothing, then, in their manner or appearance, as the court did not have them before it, which could have influenced that tribunal to disbelieve their positive statements, and we perceive nothing in the circumstances to raise any such disbelief. The presumption, prima facie, which the law makes from the unusual nature of the transfer is entirely done away with by the testimony of these two uncontradicted witnesses, and the jury w'as right in its special findings.
The court below had therefore no legal ground to doubt the correctness of their conclusion, and should not have done so.
The question, then, recurs, What, if any, were the errors in law committed by the trial court?
That tribunal should not have directed a verdict for the plaintiff, as the respondent contends it should, for the question of intent to make a fraudulent preference, denounced by the statute, was one of fact. (Bull v. Bray, 89 Cal. 298.) And, as we have seen, there was no evidence except the prima facie presumption, which was entirely done away with, to support any such theory of the case as the plaintiff contends for.
The next contention of respondent in support of the court’s action is, that the court erred in striking out a portion of the fourth instruction. The' matter which it was proper should be contained therein as an instruction, in the part stricken out, was fully covered by the fifth instruction for the plaintiff, and the part of the fourth given. The matter concerning the responsibility of Whittier, Fuller & Co. for the acts of their agent, in the plaintiff’s sixth instruction, was sufficiently explained in the plaintiff’s fourth instruction granted, and the balance of what was refused was given by the court in the first instruction for plaintiff.
We perceive no objection to the first instruction given for defendants. It is sustained by Bull v. Bray, 89 Cal. 298. Neither do we perceive any valid objection to the
The fifth instruction is in accordance with the law of this case, as settled by the appellate court in Hass v. Whittier, Fuller & Co., 87 Cal. 613.
It is further claimed that the jury found contrary to the fourth instruction given by the court for the plaintiff, and therefore the new trial should have been granted.
Taking all the instructions together, such was not the effect of the findings by the jury; they were not told by the instruction last mentioned to find for the plaintiff at all events, but that if they believed certain facts existed, or things had been done by defendants, they xvould find for plaintiff, and the basis on which this instruction is placed as one element necessary to show a wrongful intent is, Did defendants knoxv or have reasonable cause to believe the debtor was insolvent xvben they took the transfer? But the insolvency of the debtor, known to the creditor when he took the transfer, xvas not the only condition on which the jury were told that thejr could find for plaintiff. Taking all the instructions together, and interpreting them fairly, the jury had the right, if the evidence warranted, to find that the defendants and the debtor had no intent to make a preference in violation of section 55 of the Insolvent Act.
This they did find in effect, and in so doing they did not xiolate the instructions of.the court.
We think that the court below should not have granted a new trial, but should have rendered judgment for the defendants on the special findings, and therefore the order granting a nexv trial is reversed, and the court below directed to enter iudgment for defendants as herein indicated.
Hearing in Bank denied.
Reference
- Full Case Name
- ABE HAAS, Assignee, etc. v. W. F. WHITTIER
- Cited By
- 10 cases
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- Published
- Syllabus
- Insolvency — Preference of Creditor — Fraudulent Intent — Questions of Fact. — The question of the intent of an insolvent debtor to make a fraudulent preference of a creditor, forbidden by the Insolvent Act, is a question of fact, and not of law. Id. — Transfer out of Usual Course of Business — Presumption — Counter-evidence ■— Bona Fide Intention. — Where the transfer by an insolvent debtor to a creditor is not made in the usual and ordinary mode of business, the transaction is presumed, prima facie, to be a preference, not allowed by section 55 of the Insolvent Act; but such presumption may be overcome by counter-evidence showing that no preference of the creditor over other creditors was intended, but that the insolvent intended bona fide to treat all of his creditors alike. Id. —Transfer of Goods to Pay Debt — Evidence of Intent — Special Verdict — Hew Trial. —In an action by the assignee of an insolvent debtor to set aside a transfer of goods to a creditor in payment of the debt, where there is no evidence of a fraudulent preference, except that the transfer was not made in the usual course of business, and the uncontradicted evidence of the insolvent and of the agent of the creditor showed that there was no intention to make or secure a preference oves? other creditors, but both parties intended that all the creditors of the insolvent should share alike, the prima facie presumption which the law makes from the unusual nature of the transaction is done away with; and it is error for the trial court to set aside a special verdict of the jury, finding that the transfer was not made with a view to give a fraudulent preference, and that the creditor had no cause to believe that it was made with such view, and to grant a new trial for insufficiency of the evidence to sustain such special findings. Id.—Special Findings Control General Verdict.—The special findings of the jury against the fraudulent intent of the parties to the transfer will control a general verdict in favor of the assignee of the insolvent debtor, and it is error for the court to refuse to grant a motion of the defendants for judgment in their favor because the general verdict was not supported by the special findings, under section 625 of the Code of Civil Procedure. Id. — Motives of Creditor, in Receiving Property.—If an insolvent debtor does not transfer his property with the view or intention to give a preference to a particular creditor, it makes no difference what were the motives of the creditor in receiving the property, or what the creditor suspected or believed about the solvency of the debtor. Id. — Instructions — Omission of Qualification elsewhere Given — Knowledge of Insolvency — Violation of Instructions. ■—Where, taking all of the instructions together, and interpreting them fairly, the jury had the right, if the evidence warranted, to find that the creditor and debtor had no intent to make a preference, in violation of section 55 of the Insolvent Act, they do not violate the instructions of the court because one of the instructions, taken by itself, directs a finding for the plaintiff if the debtor was insolvent, and the creditor knew or had reasonable cause to believe that fact, and obtained the transfer in payment of the claim under such circumstances. Id. — Instructions already Given — Refusal of Request. — Matters included in instructions given may be properly stricken from an instruction asked for by one of the parties.