California Gasoline Retailers v. Regal Petroleum Corp. of Fresno, Inc.

330 P.2d 778, 50 Cal. 2d 844, 1958 Cal. LEXIS 199
California Supreme Court·Decided October 14, 1958·No. S. F. 19635·Published·Cited by 54 cases

Opinion

CARTER, J.

The original plaintiff in this action for injunctive relief was California Gasoline Retailers, a nonprofit California corporation consisting of members distributing the products of the major oil companies, Standard Oil, Shell Oil, Union Oil and others. The defendants, too numerous to name individually, are members of three groups of independent service station operators. For convenience, they have been, and will be, referred to as the Regal Group, the Norwalk Group and the Beacon Group.

*848 Plaintiff, some 60 o£ whose members were in the Fresno area where this case arose, brought suit against the defendants charging them with giving away their products in violation of the Unfair Trade Practices Act (Bus. & Prof. Code, §§ 17000-17101); with fraudulent and misleading advertising; and with conducting a lottery in violation of sections 320, 321 and 322 of the Penal Code. The trial court found in favor of defendants on the causes of action charging unfair trade practices and fraudulent advertising, but in favor of the plaintiff on the cause of action charging them with conducting a lottery. After the evidence had been concluded and both parties had rested, the plaintiff made a motion for leave to file an amendment to the complaint and to add one Philip M. Hudson as a party plaintiff. Hudson was president of plaintiff corporation and one of its members. Plaintiff’s motion was denied with the court reserving the right to alter its ruling if it could be done without prejudice to the defendants. On the day the decision was rendered, the court granted plaintiff’s motion to amend.

All defendants appeal, contending that (1) the plaintiff corporation was not a proper party plaintiff; (2) the court abused its discretion in permitting the amendment and joinder of Hudson as a plaintiff; (3) their advertising and merchandising program did not constitute a lottery as defined by section 319 of the Penal Code; (4) equity will not enjoin the commission of a crime unless the activities constitute a public nuisance, or direct pecuniary loss has been sustained by the plaintiff.

It is also contended that article IY, section 26, of the California Constitution evidences a strong public policy against lotteries in this state. That section, so far as is here pertinent, provides: “The Legislature shall have no power to authorize lotteries or gift enterprises for any purpose and shall pass laws to prohibit the sale in this State of lottery or gift enterprise tickets or tickets in any scheme in the nature of a lottery.” While the section just quoted shows a legislative intention that lotteries are to be prohibited in this state, it is obvious from the language thereof that it is not a “self-enforcing” or “self-executing” provision such as is found in article I, section 14, of the Constitution (Rose v. State, 19 Cal.2d 713, 720, 721 [123 P.2d 505]). The language shows that it was intended that the Legislature should have no power to authorize lotteries by legislation and that it was to enact legislation prohibiting lotteries. It is also apparent *849 from a reading of the provisions that a lottery is not defined. Pursuant to the mandate of the just-quoted section, the Legislature has enacted legislation defining and prohibiting lotteries and these provisions are hereinafter discussed.

Plaintiff Corporation As Proper Party Plaintiff ; * Joinder of Hudson As Party Plaintiff

Plaintiff corporation is composed of members who sell gasoline and other related products. Some 60-odd members reside in Fresno County and there are others elsewhere in the state. Plaintiff argues that it is a proper plaintiff by virtue of section 382 of the Code of Civil Procedure which provides that “. . . when the question is one of a common or general interest, of many persons, or when the parties are numerous, and it is impracticable to bring them all before the court, one or more may sue or defend for the benefit of all.” Defendants contend that there was no authorization to the plaintiff corporation to bring the suit; that plaintiff corporation is not, itself, engaged in selling gasoline; that there are more defendants than plaintiffs and that it would not be impracticable to bring them before the court. It is true, as stated by defendants, that the complaint does not allege that plaintiff was authorized to bring the suit on behalf of its members. It is alleged that plaintiff’s members have suffered loss of customers and loss of sales of gasoline and other products and related commodities and “have been injured in their property and businesses . . .”; that plaintiff will also suffer injury and loss by “reason of the inability of said members to pay dues and assessments and to participate as members of Plaintiff Corporation.”

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California Gasoline Retailers v. Regal Petroleum Corp. of Fresno, Inc., 330 P.2d 778, 50 Cal. 2d 844, 1958 Cal. LEXIS 199 (Cal. 1958).

330 P.2d 778 (California Gasoline Retailers v. Regal Petroleum Corp. of Fresno, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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