McCollum v. Steitz

CONLEY, P. J.

One of the defendants, William Steitz, partner of William Hamrick in the operation of a Fresno restaurant called the “Desert Inn," appeals from a judgment against him and the partnership based on a promissory note for $6,700 principal, together with interest, attorneys’ fees, and costs. For approximately 20 years, both before and after the date of the note, Messrs. Steitz and Hamrick were partners; during most of that time, Mr. Steitz was also in the automobile business for himself in Stockton and later in Salinas, while Mr. Hamrick lived in Fresno and, as manager, had charge of the restaurant business.

The promissory note in question reads as follows:

The record shows that the note was executed to replace two promissory notes which evidenced earlier loans by Mrs. Hey and her husband to the “Desert Inn." At her request, the name of her son, Donald H. McCollum, was added as payee so that he would have an interest in the moneys represented by it, and could collect the proceeds if she were not in a position to do so. Mr. Hamrick executed the note in the normal course of business and admits that, in signing the name “Desert Inn" beneath his own signature, he intended to charge the partnership; he acquiesces in the judgment. There is no legitimate evidence leading to a contrary conclusion, and it must be held that the findings are supported by substantial evidence.

[78]

Mr. Steitz at the time the note was signed, and for many years previously, had been a partner of Mr. Hamrick in the operation of the 11 Desert Inn, ’ ’ under that trade name.

We fail to find any reason why the judgment should be reversed. The “Amended Findings of Fact and Conclusions of Law ’' assert that Steitz and Hamrick were copartners, doing business under the firm name and style of “Desert Inn,” and that on the 20th day of February 1965, at Fresno, Mr. Hamrick “. . . made, executed and delivered to the plaintiffs for and on behalf of the copartnership a promissory note in writing for the sum of $6,700.00 with interest at the rate of 6% per annum until paid.” The findings continue by saying that the note is ambiguous “. . . in that it is not clear therefrom whether William Hamrick wrote “Desert Inn” under his signature to indicate it was his address or whether he was signing on behalf of the business.” The findings call attention to the fact that defendants promised in the note to pay costs of collection, including attorney is fees; that the plaintiffs have received no payment on the note; and that they are entitled to judgment against the defendants and each of them in the sum of $6,700 with interest and costs, and $850 attorney’s fees.