Burge

Burge v. Michael

Good Law
1963 Cal. App. LEXIS 2798·213 Cal. App. 2d 780·29 Cal. Rptr. 290
Court of Appeal of CaliforniaMarch 12, 1963Civ. No. 89California3,411 words

Opinion

Lead Opinion

Stone, J.

The lower court consolidated Burge v. Michael, No. 56304, and Michael v. Burge, No. 59350, for trial. Since the cases are in no way related except that the people involved are the same, they must be treated as though separate appeals had been taken.

Burge v. Michael, No. 56304

The business transactions involved in this case arose from the unusual circumstances of an accountant financing his client’s drive-in restaurant venture. Like most unusual business arrangements which develop according to the exigencies of a touch-and-go business, the final settlement was made in court, and not without novel questions. Respondent had acted as appellant’s accountant for some time before appellant started his drive-in restaurant business, for which respondent became the accountant. The financial condition of the business was precarious from the outset and to keep it operating, respondent personally guaranteed bank credits for appellant. He also advanced some cash, which advances were recorded in an open book account along with charges for services.

This arrangement, which began in 1947, was not initiated by an express agreement, and the best that can be said for it is that a debtor-creditor…

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