Hanson v. Mead-Haskell Co.

MUNDO, J.

In April, 1939, plaintiffs delivered to MeadHaskell Co. $2,000 to be placed in escrow with the Union Title Insurance and Trust Company and to be paid out to Mrs. Ethel B. Fletcher in consideration for a note and trust deed upon real property owned by her. Mrs. Fletcher cancelled her portion of the escrow, leaving the $2,000 with the title company. A judgment creditor of Mead-Haskell Co. levied on the $2,000 under the assumption it was Mead-Haskell’s property.

The evidence shows that Mead-Haskell Co. received plaintiffs’ money, deposited it to its own general account in the bank, disbursed it, and upon replenishing its bank account delivered $2,000 to the title company for the Hanson-Fletcher escrow. A petition in bankruptcy was filed May 19, 1939, and Mead-Háskell Co. was adjudicated a bankrupt on July 39, 1939. The Trustee in Bankruptcy being subrogated to Mead-Haskell’s rights in the premises claims an interest in the money held by the title company. The plaintiffs had no knowledge of Mead-Haskell’s insolvency when the money was delivered to Mead-Haskell. At the time Mead-Haskell delivered the $2,000 to the title company for the escrow its account at the bank was not entirely depleted. The trial court found for the plaintiffs and'its judgment was that the $2,000 is the property of the plaintiffs and that Mead-Haskell Co. nor the Trustee in Bankruptcy have any right, title or interest in and to the said sum. The Trustee in Bankruptcy appeals, contending principally that (1) the municipal court did not have jurisdiction of the subject-matter of the action; (2) quiet title action not the proper remedy, and (3) relationship between plaintiffs and Mead-Haskell was that of creditor-debtor. These contentions will be dealt with in order.

*Supp. 817

Whatever the action may be denominated we are of the opinion that it is an action at law for money had and received, and that equitable principles are only incidentally involved.

“An action for money had and received, though technically an action at law, proceeds upon equitable principles. ’ ’

(Hayward Lumber etc. Co.

v.

Lyders,

139 Cal. App. 517, 530 [34 Pac. (2d) 805].)

See, also,

Hooper

v.