People v. One 1939 Buick Coupe

MOORE, P. J.

One 1939 Buick coupe, having been seized by a law enforcing agency under the belief that it was being used to transport marihuana in violation of section 11610 of the Health and Safety Code, it was adjudged, following a

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trial, that the interest of the registered owner be forfeited to the State but that the lien held by defendant bank was valid. The Department of Finance was directed to sell the car and to satisfy the lien of the bank. .From such judgment the plaintiff has appealed.

The sole question for determination is whether there is substantial, evidential support for the finding that the loan was not made on the automobile without first making a reasonable investigation of the moral responsibility, character and reputation of the borrower prior to making such a loan.

Some days prior to August 18, 1941, one Billie Berg was proprietor of the Cafe Capri in Los Angeles. On that day he called at the office of respondent bank and stated to the president,' Mr. C. A. Adams, that one of his employees, to" wit, Theodore Bunn, desired to procure an automobile loan on a 1939 Buick coupé. Upon Adams’ inquiry as to the character of Bunn, Berg stated that he was a negro and the leader of the orchestra at the Capri; that he was a man of good moral character; that he desires to have the bank make the loan; and, finally, he said, “to show you how I feel about him, I will endorse the note.” In further proof of Bunn’s moral responsibility Berg stated that Bunn’s income was not confined to his salary as orchestra leader but that the musician had an income from recordings and radio. Thereupon the president stated, “If you are willing to endorse his note, I will let him have the money. ’ ’ A few days following the conference between Berg and Adams, Bunn called at the bank and signed a note for $664.94 and a chattel mortgage on the Buick. At that time Bunn left an application form showing that he was an orchestra leader then serving his third week at the Capri. It gave the name of a former employer without his address, and two other personal references. At that time he stated that he had not then, and never had, any judgments against him. The application played no part in the original loan for the reason that the commitment had been made by the president before the application was filed. • Neither does it appear that the former employer or any reference named in the application was ever interviewed relative to Bunn’s character. However, such facts are recorded here in view of the subsequent renewal of the loan in January, 1942, at which time a new note and a new mortgage were executed solely for the purpose of reducing the amount of the monthly