Chalco-California Corp. v. Superior Court

382 P.2d 865, 59 Cal. 2d 883, 31 Cal. Rptr. 593, 1963 Cal. LEXIS 222
CourtCalifornia Supreme Court
DecidedJune 27, 1963
DocketL. A. 27214
StatusPublished
Cited by3 cases

This text of 382 P.2d 865 (Chalco-California Corp. v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chalco-California Corp. v. Superior Court, 382 P.2d 865, 59 Cal. 2d 883, 31 Cal. Rptr. 593, 1963 Cal. LEXIS 222 (Cal. 1963).

Opinion

SCHAUER, J.

Petitioner in this mandamus proceeding, hereinafter referred to as plaintiff, seeks to compel the superior court to grant its motion for an order directing the production for inspection and copying of certain documents in the files of North American Aviation, Inc., the real party in interest, hereinafter called defendant. 1 The subject documents relate to a contract between defendant and one Varo, Inc., hereinafter sometimes called Varo. As will appear, we have concluded that plaintiff has failed to show an abuse of discretion by the trial court in its denial of plaintiff’s motion. Accordingly, the writ sought should be denied.

In March 1962 plaintiff commenced an action against defendant for breach of contract, reasonable value of services and materials, conversion, breach of confidential relationship and copyright infringement. The complaint sets forth four alleged causes of action. The first count alleges, in substance, that in August 1960 the parties agreed in writing that plaintiff was to manufacture nine power supply units for defendant according to defendant’s “B” specifications and at a stated price; that under such written agreement defendant reserved “the right at any time to make changes in the drawings and specifications” in which event “there will be made an equitable adjustment in price and time of performance mutually satisfactory” to plaintiff and defendant; that *886 on- October 28, 1960, defendant 1 ‘ orally authorized plaintiff to incorporate the [defendant’s] ‘C’ specifications into its plans, and on or about November 1, 1960 . . . confirmed the said authority in writing”; that defendant on November 22, 1960, reduced the order from nine to three units and finally, on July 5, 1961, cancelled the agreement, whereupon plaintiff tendered delivery of one complete unit and stopped work on the other two in order to mitigate its damages; and that plaintiff is now entitled to recover its costs and profits in accordance with the terms of the contract. The second cause of action incorporates the first, and is in the nature of a common count. The fourth cause incorporates the first and is based on plaintiff’s claim for compensation for its services with respect to the six units terminated by defendant.

Plaintiff’s third cause of action incorporates the first, and alleges that under a provision of the written agreement so permitting, defendant North American on December 1, 1960, requested copies of all of plaintiff’s drawings, representing that it wished to review them; that plaintiff submitted 29 drawings prepared by it for use in performing its contract; that defendant’s representation was false “in that North American’s purpose in requesting the said drawings was to transfer and deliver them to one Varo, Inc., in order to enable Varo, Inc. to manufacture power supply units for North American by use of the same”; that plaintiff owns the drawings, which are “novel, unique and original”; that it is informed and believes and therefore alleges, “that North American thereafter fraudulently, maliciously, and in breach of its confidential relationship with plaintiff, transferred and delivered the said 29 drawings to Varo, Inc. in order to enable Varo, Inc. to manufacture power supply units for North American by the use of the same, all without the permission of plaintiff . . . and . . . Varo, Inc. thereafter accepted and retained dominion over the same, and used the same in manufacturing power supply units for North American, all without the permission of plaintiff”; and that the reasonable value of the drawings is $134,720. The prayer based on this cause of action is for that amount plus $100,000 exemplary damages.

Defendant’s answer admits its agreement with plaintiff; alleges that the unit tendered by plaintiff was “mechanically” and “functionally” tested and found to be defective; and denies it is indebted to plaintiff as alleged. With respect to the third cause of action defendant admits that it *887 requested and received the drawings for review, but denies the other allegations. Varo, Inc., is not a party to the action.

After issue was joined, as related, plaintiff (on August 1, 1962) served and filed a notice of motion, with supporting affidavits 2 and memorandum of points and authorities, for an order requiring defendant to produce various documents for inspection and copying relating to defendant’s contract with Varo. Plaintiff’s itemization of these documents is set forth in the footnote. 3 Defendant filed opposition to the motion, with supporting affidavit and points and authorities.

Thereafter various affidavits were filed by the parties, and on October 5, 1962, the trial court entered its memorandum and order finding that defendant had established that certain documents in the files of defendant’s legal department (sought as item 7 of plaintiff's motion for inspection) were privileged, and that as to them plaintiff’s motion “must be denied,” but ordering the filing by the parties of further affidavits with respect to the other items listed in plaintiff’s notice of motion. The parties submitted further affidavits accordingly, and thereafter, on December 7, 1962, the court entered its order denying plaintiff’s motion. Plaintiff thereupon instituted this mandamus proceeding, claiming that as a matter of law it is entitled to inspect and copy the docu *888 ments as sought by it, and that denial of its motion constitutes abuse of discretion.

Section 2031 of the Code of Civil Procedure provides that “Upon motion of any party showing good cause therefor . . . the court . . . may order any [other] party to produce and permit the inspection and copying ... of any designated documents . . . not privileged, which constitute or contain evidence relating to any of the matters within the scope of the examination permitted by subdivision (b) of section 2016 of this code. . . .” As recently declared in Suezaki v. Superior Court (1962) 58 Cal.2d 166, 171-172 [4, 5] [23 Cal.Rptr. 368, 373 P.2d 432], “The statute confines all vehicles of discovery to those matters which are ‘relevant to the subject matter involved in the pending action, ’ and authorizes discovery of facts or matters which will not be admissible at the trial if the same are not privileged, but appear ‘reasonably calculated to lead to the discovery of admissible evidence . . .’ regardless of whether such relates to a claim or a defense. The same subdivision [see subdivision (b) of section 2031, and subdivision (b) of section 2016] also incorporates those provisions of section 2019 which authorize the trial court to exercise its discretion in protecting parties from abuse or from any unjust or inequitable situation which might otherwise arise. [5] It follows that in each ease involving a motion for an order authorizing inspection there must be a showing that the thing sought to be inspected comes within the general classification of matters subject to discovery, and that inspection may be had without violence to equity, justice, or the inherent rights of the adversary.

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Deaile v. General Telephone Co. of California
40 Cal. App. 3d 841 (California Court of Appeal, 1974)
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388 P.2d 671 (California Supreme Court, 1964)

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Bluebook (online)
382 P.2d 865, 59 Cal. 2d 883, 31 Cal. Rptr. 593, 1963 Cal. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chalco-california-corp-v-superior-court-cal-1963.