Lynch v. International Banking Corp.

Some years ago the Pacific Coast Casualty Company commenced an action against the International Banking Corporation in one of the state courts of California to recover the value of eighteen bonds belonging to the casualty company, which had been wrongfully pledged by its president with the International Corporation' to secure the payment of his individual promissory note. Soon after the commencement of the action, John C. Lynch was appointed receiver for the casualty company and was substituted as plaintiff in its place and stead. Among other defenses interposed in the action were the defenses of estoppel and ratification. The case was tried before the court without a jury, and, at the conclusion, of the trial, the court filed a written opimon holding that there was a ratification of the act of the officer in pledging the bonds, but that the defense of estoppel was not sustained. Later, the court made and signed findings of fact and conclusions of law sustaining both defenses. The term of office of the trial judge expired soon thereafter, and a motion for a new trial was heard before another judge. The motion was denied, and an appeal was taken to the District Court of Appeal,…