That appears to be a Plumeria (Frangipani) and what you are seeing are the rust spots that form in the winter. Soon, all the leaves will fall off and then new ones will grow.

No it's not that it's a Bay tree

the best that I can tell from the pix is that it looks like scale.

Your Right! did my homework and can up with same thing, thanks for helping though. There is some sooty black mold that I can washoff and spray it for whatevers making it and the scale with a little neem. Looking better I will try to snap a pic later today or tommorw. supposly it hit this tree every year but always responds to treatment. Its so funny how the thiongs ya are most bothered about doing can be the most rewarding in the end. Never really cared for the tree myself but now I see it and we have history conflict over and friends in the end...lol

Here is a link that might be useful: Pictures of Bay trees