Clark v. Lesher

337 P.2d 126, 169 Cal. App. 2d 319, 1959 Cal. App. LEXIS 2071
CourtCalifornia Court of Appeal
DecidedApril 1, 1959
DocketCiv. No. 9480
StatusPublished

This text of 337 P.2d 126 (Clark v. Lesher) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Lesher, 337 P.2d 126, 169 Cal. App. 2d 319, 1959 Cal. App. LEXIS 2071 (Cal. Ct. App. 1959).

Opinion

VAN DYKE, P. J.

This is an appeal from a judgment entered by the court after a trial of special defenses in an action for damages for fraudulent conspiracy. The facts and history of this litigation are set forth in Clark v. Lesher, 46 Cal.2d 874 [299 P.2d 865], We think it unnecessary to here repeat the Supreme Court’s recital in that decision of the history and background of this action. For the present it will suffice to say that the complaint herein charged the following: Upon the death of appellant’s father, respondent Lesher, who owned a newspaper in an adjoining county, bought a paper being published in Madera and appointed respondent Hal-comb as manager thereof. Lesher and Halcomb then conspired to eliminate a rival paper, the Madera Tribune, being published by appellant as a surviving partner, from competition in the Madera field. Clark’s newspaper had been owned in partnership by himself and his father. In furtherance of the conspiracy, Lesher purchased the heirship rights of the two children of appellant’s father in said decedent’s partnership interest in the newspaper. One Jay was the administrator of the senior Clark’s estate. Without the knowledge or consent of Jay, Lesher brought an action entitled “Jay v. Clark” in the name of said administrator and for the purpose of ousting appellant from possession of the news[321]*321paper. After entry of the interlocutory judgment in Jay v. Ciarle, which judgment ordered Clark to account to his father’s estate for his management of the newspaper as surviving partner, Lesher and Halcomb approached one Wolfe, telling him that they would arrange to have him appointed as receiver of the partnership, in which event he was to discontinue the publication of the newspaper. Wolfe agreed to the plan and Lesher and Halcomb procured the order appointing Wolfe as receiver of the partnership without the knowledge or consent of said administrator and without notice to appellant. Although the interlocutory judgment directed that the business be sold as a going concern, Lesher, Halcomb and Wolfe conspired to obtain an order authorizing the presale cessation of the publication. In an ex parte proceeding conducted without securing the consent of the administrator and without giving notice to appellant, Wolfe, by knowingly misrepresenting to the court that there were not sufficient funds to continue publishing the paper procured the order directing that publication be discontinued within 10 days and that the business be sold. The newspaper could have been sold to best advantage while being published and circulated and defendants knew that cessation of its publication would cause irreparable damage to its owners. When publication ceased there was a total destruction of the good will of the newspaper. Immediately thereafter, advertisement and subscription rates of Lesher's newspaper were raised. In collaboration with Halcomb and Wolfe, Lesher entered a bid to buy the newspaper, offering to raise any other bid by $200. Lesher’s bid was accepted and the assets of the newspaper were delivered to him.

A general demurrer to the complaint was sustained without leave to amend and judgment was entered accordingly. On appeal the judgment was reversed on the ground that the complaint stated a cause of action in tort for fraudulent conspiracy to destroy and depreciate the good will of the partnership. (Clark v. Lesher, 106 Cal.App.2d 403 [235 P.2d 71].) Respondents answered, denying the fraudulent conspiracy and alleging four affirmative defenses. The trial then proceeded on these special defenses, a jury returned a verdict for the defendants, respondents here, and on appeal this judgment was in part reversed. As to two of the special defenses the Supreme Court (Clark v. Lesher, 46 Cal.2d 874 [299 P.2d 865]) held that they were not valid defenses as a [322]*322matter of law. As to two other special defenses the Supreme Court directed a retrial in accordance with the court’s ruling as to the validity of those defenses. The ease was remanded to the trial court and it has now again been tried as to the two said special defenses. This time the trial was before the court without a jury and the trial court made findings and entered judgment sustaining the two special defenses.

We think it necessary to discuss only one of the special defenses sustained by the trial court as it effectually disposes of the action if, as we hold, the defense was properly made out. It was specially pleaded by respondents, Lesher and Halcomb, that the cause of action sued upon herein had been assigned to Lesher under an agreement made in a preceding action which led to a stipulated judgment therein. Said the Supreme Court in Clark v. Lesher, supra, at page 883:

“. . . By the terms of the agreement Clark and his wife assigned to Lesher ‘all of their rights, title and interest of every kind and nature in and to the properties in the Estate [the estate of appellant’s father George Clark] ’ and ‘all claims of every kind, nature, and description that they have heretofore filed against said Estate, or which they might hereafter assert against said Estate, ’ together with ‘ their entire interest in the partnership . . . and in all assets of said partnership. ’ The cause of action, being one for the fraudulent destruction of the good will of the newspaper, arose out of the violation of a right of property, and it was, therefore, assignable and could have been included in the agreement, if the parties so intended. [Citing cases.]
“The ease was tried on the theory that the question of whether the cause of action for fraud had been assigned to Lesher was to be determined from the face of the written instrument. Under this theory the construction of t-he writing was the responsibility of the trial court and not the function of the jury. [Citing cases.] The instructions of the court, however, erroneously left to the jury the legal question of the interpretation of the assignment.
“Defendants urge that the error was not prejudicial, asserting that it can be said as a matter of law that under the terms of the instrument Clark transferred his cause of action to Lesher. We do not agree. The assignment is reasonably shbject to opposed constructions with respect to whether the parties intended to include the cause of action for fraud. The broad language used might be fairly construed to mean [323]*323that Clark parted with all rights arising out of his connection with the newspaper, including the right to recover for fraudulent injury to its good will. On the other hand, the assignment does not mention the cause of action for fraud or any claim against Lesher or the other defendants, and the reference to the ‘assets’ of the newspaper might lie understood as applying merely to items of property involved in operating the business and not to a right to recover for prior tortious injury to s-ueh property. Evidence relating to the negotiations which preceded execution of the assignment was introduced, but it was limited by the trial court to the separate defense that Clark was estopped to deny the transfer. The evidence could properly have been received as an aid to the construction of the instrument, but the court ruled it was inadmissible for that purpose. . . .

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Related

Clark v. Lesher
299 P.2d 865 (California Supreme Court, 1956)
Leo F. Piazza Paving Co. v. Bebek & Brkich
296 P.2d 368 (California Court of Appeal, 1956)
Clark v. Lesher
235 P.2d 71 (California Court of Appeal, 1951)
Jay v. Clark
192 P.2d 462 (California Court of Appeal, 1948)

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Bluebook (online)
337 P.2d 126, 169 Cal. App. 2d 319, 1959 Cal. App. LEXIS 2071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-lesher-calctapp-1959.