Lopez

Farr & Stone Insurance Brokers, Inc. v. Lopez

Good Law
132 Cal. Rptr. 641·1976 Cal. App. LEXIS 1840·61 Cal. App. 3d 618
Court of Appeal of CaliforniaAugust 17, 1976Civ. 48211California970 words

Opinion

Opinion

Fleming, J.

Defendant Gus Lopez appeals the judgment for $5,899 plus interest and costs in favor of plaintiff Farr & Stone Insurance Brokers, Inc. in an action for insurance premiums. The trial court heard the cause without a jury and found that Lopez promised to pay past-due insurance premiums owed by Apex Auto Products Company to Farr & Stone and that his promise was an original obligation supported by valid consideration. Lopez contends the evidence shows no promise to pay the premiums, and, if there was a promise, it lacked consideration.

The evidence, which must be viewed in a light most favorable to the judgment (Crawford v. Southern Pacific Co., 3 Cal.2d 427, 429 [ 45 P.2d 183 ]), shows that from 1969 to 1973 Farr & Stone provided comprehensive business and workmen’s compensation insurance to Apex. In 1973 Apex fell into financial difficulties and behind on premium payments. Farr & Stone advanced $6,099.03 to insurance carriers on behalf of Apex.

In January 1974 Lopez’s children assumed management of Apex on the promise that they would share in the ownership of the company. To help his children, Lopez agreed to assist Apex with its financial problems. As Lopez testified, “If…

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