Stephens v. Commercial National Bank

SPENCE, J.

Plaintiff sought to recover damages, basing her alleged cause of action upon the allegations that defendant had “negligently, carelessly and wrongfully and without any authority from plaintiff” permitted certain certificates of stock to be taken from her safe deposit box. The trial court directed a verdict in favor of defendant and from the judgment entered upon the verdict plaintiff appeals.

In 1922 plaintiff and her son George Bayne Stephens jointly rented a safe deposit box in the defendant bank. They signed an agreement with the bank which provided among other things that the bank was authorized to grant access to the box to either of them “or the duly appointed deputy of either”. It further provided that plaintiff and

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her son would hold the bank harmless against any loss or claim for damage caused by reason of the bank granting access to and the removal of the contents of the box by either of them “or the duly appointed deputy of either”. The box was of the ordinary type having two keys, a master key held by the bank and another key which was given to plaintiff. Plaintiff deposited various papers in the box including unindorsed certificates for 175,000 shares of the preferred stock of the Interstate Oil Corporation. On June 27, 1924, plaintiff executed a general power of attorney to one W. F. Peterson. Plaintiff then left Los Angeles and while in Chicago, on July 23, 1924, executed a second general power of attorney to the said Peterson. Both instruments were entitled “Power of Attorney, General”. They were in the form commonly used in this state and purported to confer upon said Peterson the power and authority to do every act and thing which plaintiff could do if personally present. The second differed from the first only in the addition of deeds of trust to the instruments specifically referred to therein. Both documents were recorded in the office of the county recorder of Los Angeles County. Neither was ever revoked and both were in full force and effect at all times mentioned herein. On February 24, 1925, plaintiff wrote a letter to Peterson from Chicago specifically authorizing and directing him to take certain stock certificates from her safe deposit box. Peterson went to the bank with this letter and plaintiff’s key in his possession. After being identified he was permitted to withdraw the stock referred to in the letter and no complaint is made concerning this withdrawal. On March 16, 1925, Peterson again went to the bank, having in his possession plaintiff’s key and the second general power of attorney above mentioned. The defendant bank granted him access to the box. Among other things, he withdrew certain certificates of the stock of the Interstate Oil Corporation representing 100,000 shares for which he left a receipt. These are the certificates involved in this action. On the same day he took these certificates to the National City Bank of Los Angeles, where he indorsed the certificates on behalf of appellant and pledged them as security for a loan in the amount of $23,500, signing the note in the name of plaintiff by himself as her attorney-in-fact. The proceeds of this loan were used in part to pay off a matured note of George Bayne