People v. One 1950 Pontiac Sedan

BARNARD, P. J. In this proceeding, based on section 11610 et seq. of the Health and Safety Code, the state sought to forfeit the interest of Charles H. James as registered owner, and the claimant bank as legal owner, of the vehicle in question. The registered owner did not answer or appear. After a trial, at which evidence was introduced, the court found in favor of the claimant bank and the plaintiff has appealed from the judgment entered. The facts are undis[17]puted and the appeal is presented on the clerk’s transcript and certain exhibits, including the contracts material to the questions involved.

So far as material here, the court found that on January 4, 1956, Charles H. James, as purchaser, and Houston Motors as legal owner executed a conditional sales contract covering this vehicle; that on January 13, 1956, Houston Motors assigned its interest in that contract to the bank and the bank advanced to Houston Motors the amount of money due to it under said contract; and that the “Automobile Dealer Contract Purchase Agreement” which was by incorporation a part of the contract of assignment between Houston Motors and the bank, provided that all automobile contracts were to be purchased immediately by the bank upon presentation for discount, that after completing a credit investigation of the purchaser if the bank deemed it inadvisable to continue to hold a particular contract Houston Motors agreed to repurchase that contract on demand, and that any such credit investigation was to be completed within 15 days. It was further found that the bank made a reasonable investigation of the moral responsibility, character and reputation of said James between January 13, 1956 and January 28, 1956; that the bank never demanded that Houston Motors repurchase this contract; that the vehicle was seized and impounded on July 14, 1956, because it had been used by James in violation of the narcotic laws; that the unpaid balance on the conditional sales contract was $391; and that this unpaid balance exceeds the value of the vehicle. As one of the conclusions of law it was found that the bank “proved that its interest in said vehicle was created after a reasonable investigation of the moral responsibility, character and reputation of the purchaser thereof.”

The appellant contends that this conclusion of law is not supported by the facts found. It is argued that the bank acquired all of Houston Motors’ interest in this sales contract, and advanced to Houston Motors the money due it under that contract, on January 13; that these facts clearly show that the bank’s interest was created on January 13, before any investigation was made; and that the provisions of the automobile dealer contract purchase agreement do not change this result.