Bond v. Karma-Ajax Consolidated Mining Co.

115 P. 254, 15 Cal. App. 469, 1911 Cal. App. LEXIS 332
California Court of Appeal·Decided February 24, 1911·No. Civ. No. 909.·Published·Cited by 6 cases

Opinion

*471 JAMES, J.

This action was brought to recover the sum of $9,190.30, alleged to be owing by defendant corporation upon various claims, for merchandise furnished, money advanced and services rendered, all of which were assigned to plaintiff prior to the bringing of suit. No answer having been filed on the part of defendant, judgment was entered against it by default. Service of summons in the action was made upon John A. Gerner, president of defendant, in the city of Los Angeles on November 30, 1908. On May 19, 1909, judgment was rendered. A motion was presented on September 13, 1909, by defendant, whereby it asked to be relieved from its default and allowed to answer on the ground of inadvertence and excusable neglect,- and the further ground that the judgment was entered without jurisdiction. An appeal is taken from the order denying that motion.

From the affidavits used on the hearing of the motion, it appears that at the time of the service of summons Gerner was the president and a large stockholder of defendant corporation ; that his holdings of stock, together with those of relatives and friends, made up a large majority of the shares issued; that when served with summons as president of the corporation, Gerner believed that the claims sued on were all justly due, and for that reason did not formally call the matter to the attention of the board of directors and caused no defense to be made in the action. ' It further appeared that at the time the suit was commenced the corporation was not actively engaged in business, and that no regular directors’ meetings were being held. On the part of defendant, affidavits were submitted in which a considerable portion of the alleged indebtedness was denied to be owing, and it was then set out that Gerner had not only failed to inform the board of directors of the fact of the bringing of the action, but that he had concealed information of the pendency of the same from the board of directors, and that a defense would have been interposed had the directors been apprised of the fact that the corporation had been sued. An affidavit of merits sufficient in form and substance was filed by defendant and, over its objection, counter-affidavits were allowed to be filed thereto. In its order denying the motion to vacate the judgment, the court recited that the motion was denied “on the ground that there appears to the court to be no surprise, *472 excusable negligence, or inadvertence on the part of defendant.” The decisions, cited in support of appellant's contention that such error was committed by the court in allowing the counter-affidavits on the question of merits to be filed as to require that its order be reversed, are not applicable to this case. It is unquestionably established that if a party applying to the court to be relieved from the results of his default, under section 473 of the Code of Civil Procedure, makes out a satisfactory showing of inadvertence or excusable neglect, and files a sufficient affidavit of merits, he cannot be denied relief because the opposite party produces proof by affidavits which, in the opinion of the court, overcomes the pi'ima facie showing of merits made by such defendant. But until the primary question as to whether or not there has been excusable inadvertence or neglect has been determined in favor of a moving party, he is not entitled to relief, be his showing of merits ever so strong or satisfactory. Where it is rightly decided, therefore, that no case is presented of excusable neglect or inadvertence, then any error committed by the court in admitting or refusing to admit proof touching the merits of the controversy cannot be prejudicial. In the decisions to which reference is made by appellant (notably, Douglass v. Todd, 96 Cal. 657, [31 Am. St. Rep. 247, 31 Pac. 623], and Rauer’s Law etc. Co. v. Gilleran, 138 Cal. 354, [71 Pac. 445]), where orders of the kind under review here were considered and reversed, it appears in each of the cases that the evidence which was received contradicting the showing of merits controlled the court in making the orders appealed from. In this case the court specified in its order that it found that there had been no excusable neglect or inadvertence. Hence, the admission of the affidavits in rebuttal of the showing made by appellant that it had a meritorious defense to the action, if error, was not prejudicial.

It is next contended that under the showing of excusable neglect, as made, defendant was entitled to have the judgment vacated and leave granted it to answer. Before an appellate court is authorized to disturb an order, made upon a motion to set aside a judgment under the provisions of section 473, it must clearly appear that the court making the order has abused the discretion committed to it; otherwise stated, that the order is without any evidence whatsoever to sustain it. *473 (Moore v. Thompson, 138 Cal. 23, [70 Pac. 930]; Nicoll v. Weldon, 130 Cal. 666, [63 Pac. 63].) Only a brief abstract of the substance of a portion of the affidavits as they were presented to the court at the time of the hearing of the motion has been set out herein, but enough is shown to make it clear that the judgment of the court was exercised within the limits of a reasonable discretion and was supported by competent evidence.

Free access — add to your briefcase to read the full text and ask questions with AI

Bond v. Karma-Ajax Consolidated Mining Co., 115 P. 254, 15 Cal. App. 469, 1911 Cal. App. LEXIS 332 (Cal. Ct. App. 1911).

115 P. 254 (Bond v. Karma-Ajax Consolidated Mining Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Weinberger v. Manning
123 P.2d 531 (California Court of Appeal, 1942)
State v. Osen
272 N.W. 783 (North Dakota Supreme Court, 1937)
Startzman v. Los Banos Cotton Gins, Inc.
256 P. 220 (California Court of Appeal, 1927)
Elberta Oil Co. v. Superior Court
239 P. 415 (California Court of Appeal, 1925)
Estate of Triest
236 P. 930 (California Court of Appeal, 1925)
Missouri, K. & T. Ry. Co. v. Ellis
1916 OK 335 (Supreme Court of Oklahoma, 1916)