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Gambord Meat Co. v. Corbari

Citations: 240 P.2d 342; 109 Cal. App. 2d 161; 1952 Cal. App. LEXIS 1815Docket: Civ. 14860

Court: California Court of Appeal; February 8, 1952; California; State Appellate Court

Narrative Opinion Summary

In this case, the respondent, Gambord Meat Company, filed a lawsuit against the appellant, Archie Corbari, asserting claims based on goods sold and an account stated. The litigation arose after Nicolai Meat Company, for whom Corbari acted as a disclosed agent, went bankrupt. Corbari issued a personal check to Gambord Meat Company to partially settle the debt, but the check was dishonored. The primary legal issue involved whether an agent could be held personally liable for a debt when issuing a personal check without disclosing their agency. The court granted a summary judgment in favor of Gambord, determining that no factual disputes existed warranting a trial. It emphasized that an agent who issues a personal check without indicating their agency status on the check assumes personal liability. The court's decision relied on established California precedents that allow the payee to hold the drawer of a dishonored check liable. The ruling was affirmed, holding Corbari personally accountable, as the dual promise inherent in issuing a check was not fulfilled, and no factual issues remained for resolution.

Legal Issues Addressed

Agent Liability for Personal Checks

Application: The court applied this principle by holding the defendant personally liable because he issued a personal check without disclosing his agency status on the check.

Reasoning: The court highlighted that an agent can be held primarily liable for a debt if they issue a personal check without disclosing their agency on it.

Liability on Dishonored Checks

Application: The defendant was held liable for the dishonored check he issued, as the court followed precedents that allow the payee to pursue the drawer for nonpayment.

Reasoning: The court cited California legal precedents affirming that a payee can pursue the drawer of a check for nonpayment.

Summary Judgment Criteria

Application: The court granted summary judgment as there were no triable issues of fact, indicating that the evidence presented showed no genuine dispute necessitating a trial.

Reasoning: The court granted Gambord's motion for summary judgment, ruling that no triable issue of fact existed.