Supreme Court of Washington
85 P.2d 1057 (Wash. 1939)
Polzin (defendant) owned Surety Finance Corporation, a loan company, and Clallam Adjustment Corporation, a bill-collection agency. Mamie Braseth gave Polzin a promissory note in the amount of $200, for which Polzin gave Braseth $7 in return. As a result of this exchange, Polzin was obligated to pay certain bills that Braseth owed to other creditors. Polzin then convinced two of the creditors to employ Clallam to collect the creditors’ accounts against Braseth in return for a collection fee to be paid by the creditors to Polzin. The creditors agreed, unaware that Polzin was already obligated to pay Braseth’s debt. Polzin then transferred money from the promissory note to Clallam. Clallam paid the amount, minus the $19 collection fee, to the two creditors, thereby paying Braseth’s debt in full. Polzin was later convicted of petit larceny for taking a collection fee from the creditors. Polzin appealed.
Rule of Law
Holding and Reasoning (Steinert, C.J.)
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