Brandon v. Anglo-California Trust Co.

[700]

MELVIN, J.

Two of the defendants, Anglo-California Trust Company and Continental Building and Loan Association (corporations), appeal from the judgment and an order denying their motion for a new trial.

The facts which are undisputed are as follows: On the eighth day of August, 1912, following a report made to him dealing with the status of the Continental Building and Loan Association, the building and loan commissioner of California made an examination of the affairs, business, and condition of that corporation, and found and determined that it was conducting its business and affairs in an unsafe manner so as to render its further proceedings hazardous to the public and to those doing business with it and to those having funds in its custody. This determination was made under the authority of section 9 of an act of legislature, found in the Statutes of 1911 at page 607 (as amended), Extra Session 1911, page 6.

In further attempted compliance with the act the commissioner appointed Franc J. Brandon—who was the original plaintiff in this action but who has since died and is here represented by the administratrix of his estate—custodian of all the property and assets of the Building and Loan Association. Thereafter the attorney-general, pursuant to the statute, commenced and conducted a proceeding for approval and confirmation of the action of the commissioner. The result after trial was a judgment and decree disapproving of the action of the commissioner in taking possession of the business and affairs of the Building and Loan Association.

The custodian claimed, and this is a suit to recover, compensation for ninety-three days during which he had controlled the property, at the rate of eight dollars per day, which was the amount fixed by the commissioner. This, after deducting a credit of $20 collected and retained by the custodian, amounted to $724. The court gave judgment for this sum, and it was further found that while the commissioner was in possession of the Continental Building and Loan Association he deposited with the Anglo-California Trust Company certain funds of the said Continental Building and Loan Association; that he gave an order in writing that said Anglo-California Trust Company pay to plaintiff from said