People v. One 1956 Chevrolet 4-Door Sedan

VALLÉE, J. Appeal from a judgment decreeing that an automobile be forfeited to the state, subject to the lien of the legal owner, on the ground it had been used in the unlawful transportation of narcotics.

[612]The court found and decreed that the legal owner had made a’ reasonable investigation of the morals, responsibility, character, and reputation of the purchaser prior to the creation of its .interest. Plaintiff appeals.

. . Plaintiff first contends. the evidence was insufficient as a matter of law to establish that a reasonable investigation had been made. The argument.is that the only evidence with respect to the investigation was regarding the standard operating procedure of the legal owner.

Section-11620 of the Health' and Safety Code in pertinent part provides: “The claimant of any right, title or interest in the vehicle may prove his lien, mortgage, or conditional sales contract to be bona fide and that his right, title, or interest was created after a reasonable investigation of the moral responsibility, character, and reputation of the purchaser, and without any knowledge that the vehicle was being, or was to be, used for the purpose charged. ’ ’

It was stipulated that the automobile was sold to Odis B. Hendrix on a conditional sales contract in the usual course of business; the contract was bona fide and valid in all respects ; the seller—legal owner—had no knowledge that the automobile would be used for any unlawful purpose.

The legal owner, without objection, introduced in evidence a document titled “Purchaser’s Credit Statement,” designated Exhibit' C. The exhibit showed numerous written notations. About one-third of the way down the document on the left-hand side was a notation, “OK by his employer.” To the immediate right of this was the notation, “OK by employer.” To the far right was the notation, “OK his employer.”

•Miss Molloy, the credit manager of the legal owner, testified she-recognized the handwriting on Exhibit C as that of JuneEatario, who was in the employ of the legal owner in the credit department at the time of the sale. She testified to the method of preparation of the document by explaining the standard procedure followed by the credit department in making the investigation of a purchaser as follows: “We first call the employer and if the employment has been a year or two years, we ask the employer—well, first, naturally we ask if the person has been employed. Secondly, we ask as to their knowledge of the good moral character of the employee, and if he has been m any difficulties that' they know of; and thirdly, if his home address is the same as is stated on the application. Q. Now, according to your standard procedure, Miss Molloy, what is1