Harbor Supply Co. v. Motor Boat Astorian

Respondent is a corporation whose principal place of business is in the city of San Pedro, California, where it is engaged in the business of supplying gear, tackle and supplies to ocean-going boats. The defendants J. V. Giaconi, Mrs. K. M. Giaconi and Peter M. Hanson were the owners of the ocean-going motor boat Astorian, which was engaged in fishing along the Pacific Coast from Alaskan to Mexican waters.

On or about October 1, 1929, J. V. Giaconi, acting as managing agent for the boat, leased it to Y. Ito for the period of one year at a cash rental payable monthly in varying amounts. It was agreed that Ito should, at his own cost and expense, keep the Astorian in good, operative condition, tight, staunch, well fitted and tackled and that he would pay all expenses of the operation thereof including the gear and the supplies used during the term of the lease. He was given the option to purchase the boat on or before October 1, 1930, which he did not exercise. By the terms of the agreement he was prohibited from selling, mortgaging or otherwise disposing of the Astorian and agreed not to permit it to be attached or taken upon execution.

Ito and J. V. Giaconi were brought together…