Anglo-California Trust Co. v. Holbrook

THOMPSON, J.

Plaintiff appeals from a judgment decreeing that it has no interest in a certain certificate of membership in the San Francisco Golf and Country Club formerly belonging to defendant C. H. Holbrook, and from a decree quieting the title' of defendant Nellie V. Holbrook thereto. Defendant C. H. Holbrook disclaimed any interest in the certificate, pleading that the certificate was the property of his wife, defendant Nellie V. Holbrook. The facts out of which the controversy arose are as follows:

Prior to June of 1925 Mr. Holbrook was admittedly the owner of the membership in question and in possession of the certificate evidencing the same. Prior to this date Mrs. Holbrook, from her personal estate, had loaned various sums to her husband aggregating well over $5,000. On June 2, 1925, as evidence of this indebtedness, Mr. Holbrook executed and delivered to his wife a demand note in the sum of $5,410, and pledged his membership in the club as collateral security therefor. The certificate of membership was indorsed and delivered by Mr. Holbrook to Mrs. Holbrook at the time of the execution of the above note, and the evidence shows that Mrs. Holbrook has been in sole and exclusive possession of the same ever since. Appellant concedes that after June 2, 1925, the certificate was validly pledged to secure the debt owing to Mrs. Holbrook. The collateral security agreement executed by Mr. Holbrook ex

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pressly empowered the pledgee, in case of default by the pledgor, to sell the pledged property at public or private sale without notice to the pledgor, and waived presentment, protest and notice of protest. As already stated, the note in favor of Mrs. Holbrook was a demand note, and for that reason the statute of limitations started to run from the date the note was executed. It therefore follows that the statute ran against the note in June of 1929. No payments of principal or interest were ever made on the note, nor was any written renewal or extension thereof ever executed.

In August of 1930 Mrs. Holbrook learned that appellant was intending to execute on the membership for a judgment debt of her husband. She talked the matter over with her husband, and several days before August 18th notified him that she intended to sell the membership under the pledge agreement. The evidence shows that Mr. Holbrook not only had actual notice of the proposed sale, and consented thereto, but also advised Mrs. Holbrook that to sell under the pledge was the only way to protect her rights. On August 18, 1930, a private sale of the pledged property was held in Mr. Holbrook’s office. Mr. Holbrook was present and consented to the sale. Several other persons were also present. Mrs. Holbrook produced the certificate, read it to those present, and asked for bids. None being made, she bid the property in for $1,000, and applied the same on the indebtedness due her. The next day she notified an employee in the office of the club of the change in ownership of the certificate. The trial court held that this was a valid sale, and that thereafter the entire interest in the membership vested in Mrs. Holbrook.