Bureau of Welfare, California Teachers' Ass'n v. Drapeau

SPENCE, J. —Plaintiffs filed a complaint entitled “Complaint for declaratory relief, to declare a trust and to recover trust funds”. They sought thereby to obtain a declaration of their rights with respect to certain funds deposited with the North American Building-Loan Association prior to the taking over of said association by the defendant building and loan commissioner; to have it declared that said funds were held “in trust and as a preferred claim ... to be paid before any other claims;” and to have the commissioner directed “to pay over said sums in full to plaintiffs with interest and without any deduction”. The original judgment, entered herein on September 3, 1935, was in favor of plaintiffs.

Defendants took an appeal from said original judgment and also made a motion for new trial. The minute order showing the ruling on said motion reads as follows: “Motion of defendant for new trial submitted on October 15, 1935, is now granted in part and findings and judgment ordered amended (see memorandum of opinion on file).” The memorandum of opinion referred to in said order reads as follows:

“On motion for new trial. Further consideration of the issues in this case lead the Court to the conclusion that judgment was erroneously entered for plaintiffs upon the point as to the creation of a special trust fund in favor of plaintiffs. Consideration of the agreement in question, and especially of the provisions of the building and loan statutes, would indicate that plaintiffs are in no different or better position in that regard than are the other applicants and purchasers of 1 Investment Savings Certificates’.

“The motion for new trial is therefore granted as to that point: to-wit, as to the status of the fund, and the findings and judgment herein will be changed and amended accordingly to conform to the views herein expressed and against the trust fund theory.

“Upon other points and as to other findings the motion is denied and the judgment will remain.”

Thereafter amended findings of fact and conclusions of law were signed and an amended judgment was entered on [141]November 16, 1935. The amended findings of fact and conclusions of law differed from those previously signed in that the trial court found and concluded “that none of the money deposited by any of the plaintiffs is held in trust by the loan association or the commissioner and the court finds that the action of defendant commissioner in approving the claims of plaintiffs for payment upon the same basis and in the same proportion as the claims of other creditors and investment certificate holders and not otherwise was proper and correct”. It further concluded that defendant was “not entitled to deduct an entrance fee in the sum of $10.00 or any entrance fee whatever, from the monies deposited by any of the plaintiffs, or to deduct anything on that account”. The amended judgment was entered accordingly. Plaintiffs made a motion to set aside the amended judgment, claiming it was void. Plaintiffs also made a motion under section 663 of the Code of Civil Procedure to set aside the amended judgment and to enter another and different judgment. In addition thereto, plaintiffs made a motion for a new trial. All of said motions were denied.