Di Lorenzo v. Stewart Title Guaranty Co.

232 Cal. App. 2d 839, 43 Cal. Rptr. 261, 1965 Cal. App. LEXIS 1535
CourtCalifornia Court of Appeal
DecidedMarch 15, 1965
DocketCiv. 22085
StatusPublished
Cited by6 cases

This text of 232 Cal. App. 2d 839 (Di Lorenzo v. Stewart Title Guaranty Co.) 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
Di Lorenzo v. Stewart Title Guaranty Co., 232 Cal. App. 2d 839, 43 Cal. Rptr. 261, 1965 Cal. App. LEXIS 1535 (Cal. Ct. App. 1965).

Opinion

AGEE, J.

The general demurrers of the defendants to plaintiffs’ amended complaint were sustained without leave to amend as to the four corporate defendants and with leave to amend as to the seven individual defendants. Plaintiffs declined to amend and judgments of dismissal were entered in favor of all defendants. Plaintiffs appeal from said judgments.

The demurrers are both general and special and are directed to each of the three counts in the complaint. However, the orders sustaining the demurrers make it clear that the court’s ruling is based upon the single general ground urged in the demurrers, viz., failure to state facts sufficient to constitute a cause of action. No mention of the grounds of special demurrer is made in any of the orders sustaining the demurrers or in the judgments.

Accordingly, if a count in the amended complaint is good against the ground of general demurrer, the judgments should be reversed as to such count and the trial court should be directed to overrule the general demurrers thereto and to rule on the points presented by the special demurrers. Stowe v. Fritzie Hotels, Inc., 44 Cal.2d 416 [282 P.2d 890]; Weinstock v. Eissler, 224 Cal.App.2d 212 [36 Cal.Rptr. 537].)

*841 “ When a demurrer based upon both general and special grounds is sustained and the order mentions only the general ground, impliedly the ruling was made either without consideration of the special grounds or upon a determination that they are not well taken. If the general demurrer was sustained erroneously, the trial judge should be directed to consider the special grounds.” (Stowe v. Fritzie Hotels, Inc., supra, p. 425.)

The first count alleges that plaintiffs conceived and researched the idea of forming a title insurance company and a savings and loan association to do business in Monterey County; that they solicited for participants; that thereupon they and defendants Dormody, Dellamano, Shankle, Rudoni, and six other individuals who later withdrew, entered into an oral agreement of joint venture to accomplish these objectives; that defendant Stewart Title Guaranty Company and its manager, defendant Marriott, thereafter entered into the joint venture and were informed by the other venturers of all of their efforts and plans; that thereafter the above six defendants and defendants Kreuter, Krotozyner, Stewart Title Company of Monterey County, a corporation, West Coast Properties, a corporation, and Old California Title Company, a corporation, conspired together for the purpose of depriving plaintiffs of the fruits of the joint venture to which they were entitled under the agreement 1 ; that these fruits included promotional stock in the title company formed by the joint venturers in the amount of $25,000 and the appointment of one of the plaintiffs as a director and officer of said company, with a salary commensurate therewith; that each of the defendants acted individually and as the agent of each and all of the other defendants in respect to the matters and *842 things alleged herein; that by reason of the conspiracy and the resulting breach of the joint venture agreement plaintiffs have been damaged in the sum of $100,000.

The third count incorporates the first count by reference thereto. It then alleges that, at the time of the making of the joint venture agreement, defendants did not intend to keep their promises and representations with respect to the fruits and rewards which plaintiffs were to receive from the joint venture. (Civ. Code, § 1710, subd. 4.)

This count would at first blush seem to apply only to those defendants who were original members of the joint venture. However, as in the first count, plaintiffs have alleged that each of the defendants acted individually and as the agent of each and all of the other defendants in respect to the matters and things alleged herein, and this would make said count apply to all of the defendants.

The third count concludes by alleging that defendants effectually defrauded plaintiffs and thereby procured for themselves “the fruits of the invention, initiative, experience, efforts and labor of the plaintiffs in the design, formation and development of said corporations and each of them and the procuring and promotion of business for them. ’1

While the first and third counts are quite lengthy and badly in need of clarification, we think that each states facts sufficient to constitute a cause of action.

The gravamen of plaintiffs’ cause of action is that they were parties to a joint venture agreement under which they were to obtain certain pecuniary benefits and rewards and that defendants, some of whom were coventurers and some of whom were not, wrongfully interfered with this contractual relationship with the intent and for the purpose of depriving plaintiffs of such benefits and rewards, thereby damaging plaintiffs in a stated amount.

In James v. Herbert, 149 Cal.App.2d 741 [309 P.2d 91] and 154 Cal.App.2d 873 [316 P.2d 733], it was held that a course of action for civil conspiracy was sufficiently stated by a complaint alleging that defendants (two of whom were coventurers and one of whom was not) entered into a wrongful conspiracy to exclude plaintiff from further participation in a joint venture, to deprive her of her interest therein, and to obtain and retain the business and profits for themselves, and that by reason thereof she suffered damage in a stated sum.

We think the following statement of our Supreme Court in Matteson v. Wagoner, 147 Cal. 739, 742 [82 P. 436], *843 which has been repeatedly quoted with approval, is applicable to the first and third counts herein: “In determining whether or not the complaint is sufficient as against the demurrer, upon the ground that it does not state facts sufficient to constitute a cause of action, the rule is, that if upon a consideration of all the facts stated it appears that the plaintiff is entitled to any relief at the hands of the court against the defendants, the complaint will be held good, although the facts may not be clearly stated, or may be intermingled with a statement of other facts irrelevant to the cause of action shown, or although the plaintiff may demand relief to which he is not entitled under the facts alleged. ’ ’

Defendants make various contentions as to the enforceability of the joint venture agreement. We need not discuss these at this time, since the agreement is not void but at best may be unenforceable as to certain provisions thereof. We are concerned here only with the issue of pleading.

In Zimmerman v. Bank of America, 191 Cal.App.2d 55 [12 Cal.Rptr. 319], a judgment entered upon the sustaining of a general demurrer to plaintiff’s complaint was reversed.

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Bluebook (online)
232 Cal. App. 2d 839, 43 Cal. Rptr. 261, 1965 Cal. App. LEXIS 1535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/di-lorenzo-v-stewart-title-guaranty-co-calctapp-1965.