Duggan v. Superior Court

127 Cal. App. 3d 267, 179 Cal. Rptr. 410, 1981 Cal. App. LEXIS 2524
CourtCalifornia Court of Appeal
DecidedDecember 30, 1981
DocketCiv. 52998
StatusPublished
Cited by6 cases

This text of 127 Cal. App. 3d 267 (Duggan v. Superior Court) 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
Duggan v. Superior Court, 127 Cal. App. 3d 267, 179 Cal. Rptr. 410, 1981 Cal. App. LEXIS 2524 (Cal. Ct. App. 1981).

Opinion

Opinion

ROUSE, Acting P. J .

Petitioner is plaintiff in an action for dissolution and accounting of partnership assets and for compensatory and punitive damages for fraud. He seeks a writ of prohibition to prevent respondent from enforcing its order compelling the deposition of petitioner’s spouse Wilma, despite assertion of the marital privilege authorized by sections 970 1 and 971 2 of the Evidence Code. 3 Petitioner contends that the order violates the marital privilege. 4 We agree.

The question presented is whether the action brought by petitioner, which seeks to establish a 15 percent ownership interest in 7 parcels of real property acquired on behalf of the partnership and held of record by real parties in interest, defendants in the action, is prosecuted for the “immediate benefit” of petitioner’s spouse.

The privilege for marital communications is contained in section 980, which provides: “Subject to Section 912 and except as otherwise provided in this article, a spouse ... whether or not a party, has a privilege during the marital relationship and afterwards to refuse to disclose, and to prevent another from disclosing, a communication if he claims the privilege and the communication was made in confidence between him and the other spouse while they were husband and wife.”

*270 There is no claim of waiver of the privilege under the provisions of section 912, subdivision (b). 5 In granting the motion, respondent court accepted the argument of real parties that the exception contained in section 973, subdivision (b), applied. That section provides: “There is no privilege under this article in a civil proceeding brought or defended by a married person for the immediate benefit of his spouse or of himself and his spouse.”

Petitioner and real parties offer conflicting views of the Legislature’s intent in enacting subdivision (b) of section 973. Petitioner asserts that the statutory exception is a codification of the doctrine of waiver formulated in prior case law; real parties suggest that the section creates a more expansive exception to the marital privilege.

The legislative history and authority cited by petitioner are persuasive. The Legislative Committee comment to section 973, subdivision (b), states: “It recognizes a doctrine of waiver that has been developed in the California cases.” Under established rules of statutory construction, “it is not to be presumed that the legislature in the enactment of statutes intends to overthrow long-established principles of law unless such intention is made clearly to appear either by express declaration or by necessary implication.” (County of Los Angeles v. Frisbie (1942) 19 Cal.2d 634, 644 [122 P.2d 526]; Palmer v. Agee (1978) 87 Cal.App.3d 377, 383 [150 Cal.Rptr. 841].) Neither express declaration nor necessary implication having been established by real parties, the principles of law existing at the time of the enactment of the statute still stand.

In light of the foregoing, we respond to the question whether a spouse who is not nam'ed as a party to the action, nor as a signatory to the partnership agreement at issue, nor as record holder of any of the real property at issue, is a person for whose immediate benefit the action was brought, solely by virtue of a potential community property interest in any recovery which petitioner might obtain.

No cases have construed the meaning of “immediate benefit” within the context of section 973, subdivision (b). However, the phrase is used elsewhere in the Evidence Code and its predecessor statutes. Section 776, for example, provides, in pertinent part: “(a) A party to the record *271 of any civil action, or a person identified with such a party, may be called and examined as if under cross-examination by any adverse party ... [¶] ... (d) For the purpose of this section, a person is identified with a party if he is: [11] (1) A person for whose immediate benefit the action is prosecuted or defended by the party.” The predecessor to that section was section 2055 of the Code of Civil Procedure. The phrase “immediate benefit,” as found in the predecessor, was interpreted in Freeman v. Jergins (1954) 125 Cal.App.2d 536 [271 P.2d 210], In that case, defendant attempted to examine a person named Troutman as if under cross-examination. Plaintiff objected to the attempt on the ground that Troutman was not a person for whose immediate benefit the action was prosecuted. The trial court sustained the objection. The court upheld the lower court’s action and stated: “. . . Troutman, having stood by and acquiesced in everything that plaintiff did, could in no event have a claim for more than one-half of whatever plaintiff might receive, and this claim, as we say, would be against plaintiff rather than defendants. [¶] ... Since the rights of Troutman were limited as above set forth and he had no claim upon defendants, the court properly held that he was not a party for whose immediate benefit the action was prosecuted .... The action was not for the enforcement of any claim of Troutman against the defendants.” (Id., at p. 559.) The court found that, although plaintiff’s action would benefit Troutman because of his claim against the plaintiff, the action was not prosecuted for Trout-man’s immediate benefit. The case at bar presents a similar situation. Petitioner’s wife would benefit from any recovery petitioner might obtain, not because of any right which she has against real parties directly but because of community property rights in relation to petitioner.

Two cases have interpreted the same phrase contained in section 2019 of the Code of Civil Procedure. In Waters v. Superior Court (1962),58 Cal.2d 885 [27 Cal.Rptr. 153, 377 P.2d 265], the California Supreme Court ruled as follows: “In this context the phrase ‘person for whose immediate benefit an action is prosecuted’ has been held to mean a person who would have an immediate right to the amount recovered or some portion of it as soon as it was recovered by the nominal plaintiff. [Citations.] [¶] Similarly in an action defended for the immediate benefit of a person, the liability must be immediate and direct. [Citation.] The liability of a shareholder or a shareholder’s right to corporate funds does not become direct merely because he is the sole shareholder.” (Id., at p. 897; italics added.) Invoking the Waters rationale, the court in Southern California Edison Co. v. Superior Court (1972) 7 Cal.3d 832 [103 Cal.Rptr. 709, 500 P.2d 621], ruled that members of *272

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Bluebook (online)
127 Cal. App. 3d 267, 179 Cal. Rptr. 410, 1981 Cal. App. LEXIS 2524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duggan-v-superior-court-calctapp-1981.