Elliott v. Bumb

356 F.2d 749 Peter M. ELLIOTT, Trustee for Van's Market, etc., Appellant, v. A. J. BUMB, Trustee for Security Currency Services, Ltd., and Corporations Commission of State of California, Appellees. No. 20095. United States Court of Appeals Ninth Circuit. February 9, 1966. Rehearing Denied March 22, 1966. Craig, Weller & Laugharn, Robert A. Fisher, Los Angeles, Cal., for appellant. Sulmeyer & Kupetz, Robert W. Alberts, Los Angeles, Cal., Thomas C. Lynch, Atty. Gen., Arthur C. De Goede, David W. Halpin, Deputy Attys. Gen., Los Angeles, Cal., for appellees. Before CHAMBERS, HAMLEY and ELY, Circuit Judges. ELY, Circuit Judge: 1 On or about November 15, 1962, a written "Agency Franchise and Trust Agreement" was executed by and between Van's Market and Security Currency Services, Ltd. In the agreement, Security appointed Van's as its "Agent for the purpose of issuing Money Orders" and Van's agreed to hold all proceeds for the face value of money orders issued, plus fifty percent of the fees therefrom, in trust for Security and entirely separate and apart from other funds in Van's possession. 1 2 Neither of the two companies fared well financially. On October 15, 1963, Van's…