Evans v. Superior Court

96 P.2d 107, 14 Cal. 2d 563, 1939 Cal. LEXIS 359
CourtCalifornia Supreme Court
DecidedNovember 9, 1939
DocketS. F. 16245; S. F. 16268
StatusPublished
Cited by56 cases

This text of 96 P.2d 107 (Evans 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
Evans v. Superior Court, 96 P.2d 107, 14 Cal. 2d 563, 1939 Cal. LEXIS 359 (Cal. 1939).

Opinions

[566]*566THE COURT.

Petitioner, the Building and Loan Commissioner of this state, filed an original proceeding in this court (S. F. No. 16245) seeking a writ of prohibition and a writ of mandate directed to the respondent Superior Court. Respondents filed a demurrer and an answer to the petition but the material facts, for the purpose of this discussion, do not appear to be in dispute.

Pacific States Savings and Loan Company, hereinafter referred to as the “association”, was organized in this state and was doing business under the Building and Loan Association Act. (Deering’s Gen. Laws, Act 986, hereinafter referred to as the “act”.) It was one of the largest building and loan associations in the state, having assets valued by the association at approximately $50,000,000 and having investors and other creditors numbering more than 40,000. Among its assets were many large real estate holdings, including hotels, apartment houses, ranches and other properties, which were located in California, Nevada, Arizona and elsewhere, and which holdings were being operated by the association. In the operation of its offices and of said holdings, it employed a vast number of persons. The employees of the association consisted of the usual office employees found in the offices of such associations and the usual employees found in the organization of any corporation operating hotels, apartment houses, ranches and other properties. Among the office employees were several attorneys employed to handle the legal work of the association, including the work of conducting some 40 litigated cases pending in the trial and appellate courts.

As a result of examinations conducted by the petitioner, it appeared to him and he found that the association was in an unsafe condition and was conducting its business in an unsafe and injurious manner such as to render its further proceeding hazardous to the public and to its investors. Petitioner further found that the assets of the associations were then impaired to the extent specified in section 13.11 of the act. He further found that the association had refused to submit certain of its books, papers and accounts to the inspection of petitioner’s examiners and had destroyed certain of its records. Petitioner, acting under the powers granted to him under said section 13.11 of the act, did, on the 4th day of [567]*567March, 1939, demand and take possession of the property, business and assets of the association. Thereafter and within the time permitted by section 13.12 of the act, the association applied to the respondent court seeking to enjoin further proceedings by petitioner. Said action was numbered 286711 in the files of said court and will be hereinafter referred to as the main injunction suit. Petitioner filed his answer in said suit and the trial thereof commenced on March 20, 1939. The trial had already consumed 30 trial days and was then but partially completed when the investors’ suit hereinafter mentioned was commenced in the respondent court.

After taking possession, petitioner employed special counsel for the purpose of defending the main injunction suit and for the purpose of advising him on and handling other legal matters connected with the business of the association and the numerous enterprises in which the association was engaged: Petitioner also employed accountants and appraisers for the purpose of further examining into the condition of the affairs of the association and its various enterprises. In addition to the litigation pending at the time petitioner took possession, there has since been filed a jeopardy assessment lien upon a claim for income taxes in the sum of approximately $1,800,-000. It further appears that since taking possession, the commissioner, through his special counsel, has presented 21 applications to the superior court under section 13.13 of the act involving 304 separate contracts.

On May 8, 1939, Edward E. Cleese and others, individually and as members of an investors’ committee, filed an action against petitioner and others in the respondent court seeking an injunction and declaratory relief. Such action was numbered 287901, in the files of said court and will be hereinafter referred to as the investors’ suit. The main purpose of said suit was to obtain an injunction restraining petitioner from paying out of the assets of the association any sums to the special counsel, accountants and appraisers employed by petitioner as hereinabove indicated. Petitioner filed a demurrer in said suit which demurrer was overruled. He thereafter filed his answer. On May 18th, an order to show cause why a preliminary injunction should not issue came on for hearing. The matter was submitted on affidavits and the trial court announced its intention to issue the preliminary injunction sought by the investors. The first of the pending [568]*568proceedings in this court (S. F. No. 16245) was thereupon commenced but prior to the issuance of the alternative writ in said proceeding, the preliminary injunction had been signed and filed.

The material provisions of said preliminary injunction may be summarized as follows: Petitioner was enjoined, during the pendency of the investors’ suit, from paying out any of the assets of the association for any services rendered or to be rendered by any of the special counsel, accountants, or appraisers who had been employed by petitioner and ‘ ‘ generally restraining said defendants . . . from using any of the money or property of said Pacific States Savings and Loan Company for the above-mentioned purposes or any of them”. It was specifically provided, however, that the injunction did not enjoin payment for services rendered or to be rendered by persons in the employ of the association at the time of the seizure or the payment of any sums authorized by law to be paid to the attorney-general for. legal services rendered by him or his deputies.

The original purpose of the first of the pending proceedings before this court (S. F. No. 16245) was to prohibit the respondent court from issuing said preliminary injunction in the investors ’ suit and to compel said superior court to recognize the attorneys employed by petitioner and to permit them to appear for petitioner in the main injunction suit. Said injunction has since been issued but it is the claim of petitioner that if he was originally entitled to the relief requested, he should not now be denied appropriate relief by this court.

After the issuance of the injunction in the investors’ suit, the trial of the main injunction suit was resumed on June 14, 1939. Plaintiff in the main injunction suit then objected for the first time to the appearance of any attorney on behalf of the commissioner in that suit other than the attorney-general, his assistants or deputies. The trial court made its minute order sustaining said objection and ordering that the commissioner “may not appear in the above entitled case in propria persona or by any attorney other than the attorney-general, his assistants or deputies”. Petitioner then commenced the second of the pending proceedings before this court (S. F. No. 16268), being a proceeding seeking a writ of mandate to compel the respondent court to recognize peti[569]*569tioner’s special counsel and to permit said counsel to appear for said petitioner in said main injunction suit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Zahnleuter v. Mueller
California Court of Appeal, 2023
Zahnleuter v. Mueller CA3
California Court of Appeal, 2023
Sehremelis v. Sehremelis CA4/3
California Court of Appeal, 2022
Terry v. Conlan
33 Cal. Rptr. 3d 603 (California Court of Appeal, 2005)
Whittlesey v. Aiello
128 Cal. Rptr. 2d 742 (California Court of Appeal, 2002)
People Ex Rel. Department of Fish & Game v. Attransco, Inc.
50 Cal. App. 4th 1926 (California Court of Appeal, 1996)
California Air Resources Board v. Hart
21 Cal. App. 4th 289 (California Court of Appeal, 1993)
Comden v. Superior Court
576 P.2d 971 (California Supreme Court, 1978)
Running Fence Corp. v. Superior Court
51 Cal. App. 3d 400 (California Court of Appeal, 1975)
Barquis v. Merchants Collection Assn.
496 P.2d 817 (California Supreme Court, 1972)
United Farm Workers Organizing Committee v. Superior Court
483 P.2d 1215 (California Supreme Court, 1971)
Mensik v. Smith
166 N.E.2d 265 (Illinois Supreme Court, 1960)
City & County of San Francisco v. Superior Court
347 P.2d 294 (California Supreme Court, 1959)
Estate of McMillin
292 P.2d 881 (California Supreme Court, 1956)
Winstanley v. Robinson
292 P.2d 881 (California Supreme Court, 1956)
Melancon v. Superior Court
268 P.2d 1050 (California Supreme Court, 1954)
Providence Baptist Church v. Superior Court
251 P.2d 10 (California Supreme Court, 1952)
Simmons v. Superior Court
214 P.2d 844 (California Court of Appeal, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
96 P.2d 107, 14 Cal. 2d 563, 1939 Cal. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-superior-court-cal-1939.