People v. One 1955 Oldsmobile Hardtop

WARNE, J. pro tem.* This proceeding was instituted by the state under section 11610 et seq. of the Health and Safety Code to forfeit the interest of Clara M. Estrada and Melvin J. Estrada, the registered owners, and American Trust Company, the legal owner, of the defendant automobile, on the ground that said vehicle was unlawfully used to keep, deposit, [366]conceal, convey, carry and transport narcotics (marijuana) contrary to the provisions of the Health and Safety Code, supra. Clara M. Estrada and Melvin J. Estrada filed an answer denying the charge. Their interest in the automobile was ordered forfeited to the state and they have not appealed from the judgment.

Laverone Motors had sold the automobile to Clara M. Estrada by a conditional contract of sale and on the day following the sale transferred all its interest, title and right in the contract and automobile to American Trust Company. American Trust Company answered, claiming a bona fide interest in the vehicle and alleged that its interest was created by a reasonable investigation of the moral responsibility, character and reputation of Clara M. Estrada and without knowledge that the vehicle was being used for the purpose charged.

The trial court found that the Oldsmobile “was used to unlawfully keep, deposit, convey, carry and transport narcotics, to-wit . . . marijuana”; that such acts were done with the “knowledge of one Melvin Estrada who at said time was in possession and control of said defendant vehicle”; that at the time defendant vehicle was in his possession and control with the consent of Clara Estrada, the registered owner; “that on the date of the seizure . . . American Trust Company was the legal owner of defendant vehicle pursuant to the terms of a conditional sales contract executed by Clara M. Estrada on the 28th day of March, 1956, between the said Clara M. Estrada and Laverone Motors”; that the contract was assigned to and accepted by American Trust Company on the 29th day of March, 1956 and “that the interest of claimant American Trust Company in defendant vehicle was acquired after a reasonable investigation of the moral character, moral responsibility and moral reputation of Clara M. Estrada.” The court concluded that the vehicle should be declared forfeited to the state subject to a prior lien against defendant vehicle in favor of American Trust Company. Judgment was entered accordingly. From that part of the judgment in favor of American Trust Company the state appeals.

Appellant contends that the evidence is insufficient as a matter of law to support the finding that American Trust Company made a sufficient and reasonable investigation of the moral character, responsibility, and reputation of the purchaser, Clara M. Estrada, prior to the bank’s lien. We feel that there is merit in this contention.