Source: http://scocal.stanford.edu/opinion/freedman-v-queen-ins-co-27091
Timestamp: 2013-06-19 22:24:34
Document Index: 232153964

Matched Legal Cases: ['§ 663', '§ 886', '§ 484', '§ 530', '§ 221', '§ 1796']

Freedman v. Queen Ins. Co. - 56 Cal.2d 454 - Mon, 08/07/1961 | California Supreme Court Resources	Stanford Law School - Robert Crown Law Library
Home > Opinions > Freedman v. Queen Ins. Co.	Citation 56 Cal.2d 454
Freedman v. Queen Ins. Co. , 56 Cal.2d 454
Plaintiff, a jeweler, sought to recover almost $8,000 from defendant because of the loss of some diamond jewelry allegedly covered by an insurance policy issued by defendant. Upon undisputed facts the trial court made findings exonerating defendant from liability under the exclusionary clause of the policy.plaintiff appeals from the adverse judgment accordingly entered and from the order denying [56 Cal.2d 456] his motion to vacate such judgment. (Code Civ. Proc., §§ 663, 663a; Rounds v. Dippolito, 34 Cal.2d 59, 61 [206 P.2d 1083].)
[1] Following the precedents of this court and courts generally, "any ambiguity or uncertainty in an insurance policy is to be resolved against the insurer" (Continental Cas. Co. v. Phoenix Constr. Co., 46 Cal.2d 423, 437 [296 P.2d 801, 57 A.L.R.2d 914]); [2] and where "semantically permissible, the contract will be given such construction as will fairly [56 Cal.2d 457] achieve its object of securing indemnity to the insured for the losses to which the insurance relates." (Russ-Field Corp. v. Underwriters at Lloyd's, 164 Cal.App.2d 83, 92 [330 P.2d 432].) [3] While there can be no recovery where the loss is within an exception or exclusion clause of the policy (45 C.J.S., Insurance, § 886(b), p. 955) and the "right of an insurer to limit its contract of coverage may not be questioned" (National Automobile Ins. Co. v. Industrial Acc. Com., 11 Cal.2d 689, 691 [81 P.2d 926]), it is also the rule "that exceptions and exclusions are construed strictly against the insurer and liberally in favor of the insured." (Arenson v. National Automobile & Cas. Ins. Co., 45 Cal.2d 81, 83 [286 P.2d 816].)
[4] It is clear that under the undisputed facts a theft was committed (Pen. Code, § 484) through false personation (Pen. Code, § 530) immediately upon the obtaining of the diamonds by "Irving Davis." [5] It is equally clear that the obtaining of the possession of the diamonds by "Irving Davis" by means of the fraudulent representations employed accomplished a conversion of the diamonds, which would immediately support a civil action sounding in tort. (Wendling etc. Co. v. Glenwood etc. Co., 153 Cal. 411, 414 [95 P. 1029]; Amer v. Hightower, 70 Cal. 440, 442-444 [11 P. 697]; Butler v. Collins, 12 Cal. 457, 461-463.) Basing his argument upon these propositions plaintiff contends that it can no more be said that he "delivered" or "entrusted" the diamonds to "Irving Davis" when his action in handing them over was induced by fraudulent representations than if he had handed them to him at the point of a gun. This court in Butler v. Collins, supra, said (12 Cal. at p. 463): "It is said that the owner consented to the taking; and, were that so, it would undoubtedly be a sufficient answer. But consent, in law, is more than a mere formal act of the mind. It is an act unclouded by fraud, duress, or sometimes even mistake." [6] The Restatement of Torts expresses the same idea (§ 221, comment on clause (b): d): "One who by fraudulent representations induces another to surrender the possession of a chattel to him has dispossessed the other of the chattel. Assent to the actor's taking possession of the chattel given under such circumstances is ineffectual to constitute a consent to the taking. ..." [7, 8] "Delivery" is the "voluntary transfer of possession" (Civ. Code, § 1796) and to "entrust" is defined in Webster's New International Dictionary (2d ed. 1958) as: "... to deliver to (another) something in trust. [56 Cal.2d 458] ..." (Emphasis added.) [9] Under the cited authorities it is, at the very least, one tenable construction that there can be no valid "delivery" or "entrustment" of property to another where the possession of the property is acquired by means of some fraudulent device. Under the settled rules for the construction of insurance policies above stated, we must accept the tenable construction of the exclusionary clause most favorable to the insured.
­FN 1. That is, for examination and approval, according to the custom of the trade. If the merchandise is satisfactory to the retailer, a sales invoice would be executed.
Date:Citation:Category:Status:	Mon, 08/07/196156 Cal.2d 454Review - Civil AppealOpinion issued	Parties
1OSCAR FREEDMAN, Plaintiff and Appellant, v. QUEEN INSURANCE COMPANY OF AMERICA (Defendant and Respondent)2QUEEN INSURANCE COMPANY OF AMERICA (Defendant and Respondent) Disposition
Aug 7 1961Opinion: Reversed	Cite This Case
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