People v. California Safe Deposit & Trust Co.

This is an appeal from a judgment on demurrer denying appellant's petition of intervention, by which he sought to have the receiver in the above-entitled action decreed to hold the sum of $12,000 in trust for him, and that the receiver be required to pay him that amount. The petition sets forth the fact of the insolvency of the California Safe Deposit and Trust Company, the appointment of E. J. Le Breton as receiver, and his possession of its assets, and as a cause of action recites that petitioner, on the twentieth day of September, 1906, was asked, through the officers and agents of the California Safe Deposit and Trust Company, to purchase from said corporation 100 shares of its capital stock, and that said agents and officers then and there made statements to the petitioner concerning such stock, which statements and representations were knowingly false and untrue and were made for the purpose and with the intent of deceiving, defrauding and tricking the petitioner into subscribing for and purchasing the said capital stock, and the petitioner relying upon the said statements and representations, and believing the same to be true, was thereby induced to and did purchase the…

The petition of the receiver for a transfer of this cause from the district court of appeal to the supreme court is denied. We are in doubt concerning the part of the opinion of the district court which seems to imply that in an action for rescission it is unnecessary for the complaint to state facts showing reasonable diligence to discover the facts constituting the fraud on account of which the rescission is asked. But whether this is correct or not, as a rule of pleading, is immaterial to the decision, because in this case the facts alleged by the petitioner in his petition for intervention, but not fully stated in the opinion of the district court, are sufficient to excuse him for the delay in making such discovery. *Page 423