Federal Automotive Services v. Lane Buick Co.

204 Cal. App. 2d 689, 22 Cal. Rptr. 603, 1962 Cal. App. LEXIS 2297
CourtCalifornia Court of Appeal
DecidedJune 18, 1962
DocketCiv. 20183
StatusPublished
Cited by8 cases

This text of 204 Cal. App. 2d 689 (Federal Automotive Services v. Lane Buick 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
Federal Automotive Services v. Lane Buick Co., 204 Cal. App. 2d 689, 22 Cal. Rptr. 603, 1962 Cal. App. LEXIS 2297 (Cal. Ct. App. 1962).

Opinion

*691 AGEE, J.

Defendant appeals from an order granting a preliminary injunction which enjoins defendant from interfering with plaintiff’s customers or prospective customers by making representations, through its agents or employees, that plaintiff is insolvent and cannot furnish goods and services contracted for and from persuading and inducing plaintiff’s customers to breach and cancel their contracts with plaintiff by making false and malicious representations for the purpose of injuring competitors and destroying competition.

The evidence in the light most favorable to respondent is sufficient to support the order under the common-law rule as followed in California, and the injunctive relief granted is proper in the situation thus presented. (Imperial Ice Co. v. Rossier, 18 Cal.2d 33 [112 P.2d 631]; California G. C. Board v. California P. Corp., 4 Cal.App.2d 242 [40 P.2d 846]; Remillard-Dandini Co. v. Dandini, 46 Cal.App.2d 678 [116 P.2d 641]; see also, 2 Witkin, Summary of California Law, p. 1331, “Inducing Breach of Contract.”)

Respondent conducts a world-wide sales and service organization which makes contracts with servicemen about to return home from foreign duty for sale and delivery of automobiles to them upon their arrival in the United States. Many of these customers arrive by air at Travis Air Force Base in Solano County, California. Appellant is an automobile distributor located at Fairfield, which is near the base. Sergeant George C. Thompson is the noncommissioned officer in charge of processing inbound personnel. He is expressly included in the injunction.

Respondent’s verified complaint and the affidavit of its president allege in substance that appellant, acting through Thompson and other agents, was and had been engaged in tortious interference with its contractual relations by falsely representing to numerous of respondent’s customers that respondent was unreliable, insolvent and unable to perform its contracts for delivery of automobiles, thereby inducing such customers to breach their contracts or to refrain from doing business with respondent and thereupon to purchase automobiles from appellant upon the further representation by appellant that it would secure a refund of any down payment which had been made to respondent under said contracts. Count one of the complaint describes a specific instance wherein one Horace Holmes was in this manner induced to repudiate a contract with respondent for the sale and delivery *692 of an automobile to Mm and to enter into a new contract with appellant for the purchase of an automobile from it. Count two of the complaint alleges that appellant was making false representations as described above to the public at large, including respondent’s customers and prospective customers. Count three of the complaint seeks to have appellant enjoined from the foregoing conduct. Count four of the complaint alleges that appellant’s conduct violates the provisions of the California Unfair Trade Practices Act and section 17500 of the Business and Professions Code. The prayer asks for injunctive relief.

Appellant filed an affidavit denying the making of any of the foregoing representations and alleging that Thompson’s only connection with appellant was that he was occasionally employed by it to drive automobiles from Fairfield to points of delivery in California.

Respondent called its president, Robert J. Halero, and one Sergeant Joseph Wells as witnesses at the hearing on the application for the preliminary injunction. Appellant’s counsel called Thompson as his only witness.

Wells testified that he and respondent had entered into a contract in Guam whereby Wells traded in his automobile as a credit on the purchase of a new automobile to be delivered to him by respondent upon his arrival in this country; that he arrived at Travis Air Force Base from Guam on December 21, 1960; that as he was being processed in, Thompson asked him how he intended to get home; that he related the transaction with respondent; that Thompson stated that he believed that respondent had gone out of business but that he had a friend at appellant’s who could confirm this; that Thompson placed a telephone call and put Wells on the line; that someone on the other end said he was with the appellant company, that the respondent had gone out of business, but that he would see what he could do about getting back the credit Wells had received for his trade-in; that a Sergeant Tipton, who was a fellow passenger on the plane which had flown Wells in, thereupon telephoned respondent and ascertained that it was not out of business; that respondent immediately sent a representative to the base who drove Wells to Oakland, where he received delivery of a new automobile in accordance with his contract.

Halero testified that his organization had experienced approximately one hundred breaches of such contracts at Travis *693 Air Force Base in the two years previously; that this problem was not encountered at any of the other ports of entry where it did business; that it was caused by a concerted effort by appellant “to shortstop customers through various ways when they arrive at Travis”; that he had observed Thompson’s conduct with relation to this activity and had complained to the military authorities about it.

Thompson testified that he was not employed by the appellant company on December 21, 1960, in any capacity; that he had worked for the company as a driver but never as a salesman; that when Sergeant Wells and Sergeant Tipton told him that they had contracts to obtain automobiles through respondent company, he replied: “ ‘Are you sure that they are still in business ? It is my belief that they are no longer in business.’ ... ‘I have heard that from several sources.’ ... ‘In this case I will make a phone call to find out if they are still in business, and if they are not, I would suggest if you are going to buy a ear, you could buy it right in this particular area here.’ ” Thompson admitted that he then made the phone call but stated that “I don’t recall whether it was Lane [appellant] or whether it was Showalter or one of these other dealers that I know personally.”

As we have stated, the evidence is sufficient to support the order granting the preliminary injunction. However, the order did not provide for a bond as required by section 529 of the Code of Civil Procedure. This section was enacted in 1872. The Business and Professions Code was enacted in 1937 (Stats. 1937, ch. 399). It must be presumed that the Business and Profesisons Code was enacted with the provisions of the Code of Civil Procedure in mind. “The Business and Professions Code and the Code of Civil Procedure are to be read and construed together under the ‘well-recognized rule that for purposes of statutory construction the codes are to be regarded as blending into each other and constituting but a single statute.’ [Citations.]” (Pcsce v. Department of Alcoholic Beverage Control,

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Bluebook (online)
204 Cal. App. 2d 689, 22 Cal. Rptr. 603, 1962 Cal. App. LEXIS 2297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-automotive-services-v-lane-buick-co-calctapp-1962.