Fidelity Thrift & Loan Ass'n v. Hall

186 Cal. App. 2d 895
CourtAppellate Division of the Superior Court of California
DecidedNovember 28, 1960
DocketCiv. A. No. 81
StatusPublished

This text of 186 Cal. App. 2d 895 (Fidelity Thrift & Loan Ass'n v. Hall) is published on Counsel Stack Legal Research, covering Appellate Division of the Superior Court of California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity Thrift & Loan Ass'n v. Hall, 186 Cal. App. 2d 895 (Cal. Ct. App. 1960).

Opinion

GOLDSTEIN, J.

The determination of this appeal depends upon the construction to be placed on the words “special contract” contained in section 395, Code of Civil Procedure.

The facts are not in dispute. The defendants reside in Kern County, California. They entered into a written conditional sales contract in Kern County with a firm known as State Center Knitting Company for the purchase by the defendants of a knitting machine. Thereafter, the contract was assigned by State Center Knitting Company to the plaintiff, Fidelity Thrift and Loan Association. The Fidelity Thrift and Loan Association has brought this suit against the defendants for the alleged unpaid balance due on said conditional sales contract. Attached to the complaint is a copy of [897]*897the contract. On the copy of the contract so attached to the complaint appears the following statement: “Purchaser agrees to pay said contract balance in successive monthly installments payable at Fidelity Thrift & Loan Association on the same day of each month ...”

In its complaint the plaintiff alleges that “its principal place of business” is “in the Fresno Judicial District, County of Fresno, State of California.” (Paragraph II, plaintiff’s complaint.) The plaintiff further alleges in its complaint that the defendants agreed in writing to pay the balance due under the contract to Fidelity Thrift and Loan Association, and “that the said Fidelity Thrift & Loan Association is located and has its principal and only place of business in the Fresno Judicial District, County of Fresno, State of California.” (Paragraph VII, plaintiff’s complaint.)

The defendants moved for a change of venue from Fresno County to Kern County. The motion was denied in the court below. From the order of denial this appeal has been taken.

Section 395 of the Code of Civil Procedure provides in part as follows:

“When a defendant has contracted to perform an obligation in a particular county, either the county where such obligation is to be performed, or in which the contract in fact was entered into, or the county in which the defendant, or any such defendant, resides at the commencement of the action, shall be a proper county for the trial of an action founded on such obligation, and the county in which such obligation is incurred shall be deemed to be the county in which it is to be performed unless there is a special contract in writing to the contrary.” (Emphasis added.)

Each of the parties has placed a diametrically opposed construction on the words “special contract” in the foregoing section.

Plaintiff’s Contention

The plaintiff takes the position that the above-quoted statement appearing in the contract, taken together with the allegations of its complaint to the effect that it maintains its principal and only place of business in Fresno County, is a sufficient compliance with the provisions of the statute requiring a special contract in writing, if suit is to be brought in a county other than that of the residence of the defendants or the place where the contract was entered into. It further contends that proof may be offered aliunde the contract to [898]*898supply the evidence necessary to place the geographic location of the plaintiff’s place of business in this county, and that the failure to insert such geographic location is not fatal to the plaintiff’s right to retain the action in Fresno County, California. With this contention the lower court has expressed agreement in its opinion.

Defendants’ Contention

The defendants, on the other hand, urge that the words “special contract,” employed in the section above quoted, require the designation of the actual and geographic place of performance; that extrinsic evidence cannot be offered to remedy such omission in the special contract; and that the failure to insert the same in the special contract is fatal to the retention of the trial of this ease in Fresno County, California.

We have concluded from an analysis of the cases construing the words “special contract” as used in the statute, that the motion for a change of venue should have been granted.

The basic rule relating to the venue of actions is set forth in Kaluzok v. Brisson, 27 Cal.2d 760, where the court states at page 763 [167 P.2d 481, 163 A.L.R. 1308]:

“The right of a defendant to have an action brought against him tried in the county of his residence is an ancient and valuable right, safeguarded by statute and supported by a long line of decisions. The right of a plaintiff to have an action tried in a county other than that of the defendant’s residence is exceptional. If the plaintiff would claim such right he must bring himself within the exception.” (Citing eases.)

The leading case interpreting the words “special contract” in this state is Armstrong v. Smith, 49 Cal.App.2d 528 [122 P.2d 115]. There a contract had been entered into in San Francisco County for the erection of a dwelling house in Alameda County. The defendant resided in San Mateo County. The plaintiff contractor filed suit in Alameda County for damages, alleging that the defendant had refused to permit him to erect the dwelling house. The defendant moved for a change of venue to the county of his residence, to wit, San Mateo County. An order made by the Superior Court denying a change of venue was reversed in the District Court of Appeal. In its opinion the court defined the words “special contract” as follows: “A special contract has been defined in other jurisdictions as one in which there is expressed particular stipulations with respect to the obligations [899]*899of the parties, and which, if omitted, the law will not supply. ’ ’ (P. 535.)

It further amplified its definition as follows: “A special contract is one with peculiar provisions or stipulations not found in the ordinary contract relating to the same subject-matter. These provisions are such which, if omitted from the ordinary contract, the law will never supply.” (P. 535.)

It concluded: “It is our opinion that before an action may be brought under section 395, supra, in the county where the obligation forming the basis of the suit is performable, the contract must specifically state the place of performance of such obligation.” (P. 536.)

In Caffrey v. Tilton, 38 Cal.2d 371 [240 P.2d 273], the court cites with approval the holding in the Armstrong case and states the prevailing rule as follows at page 374: “ ‘If the parties have only impliedly agreed to a place of performance when the statute says that they should have specially agreed before the remedy sought may be obtained, no redress may be had.’ It was noted that a ‘special’ contract is one whose provisions are express and not dependent on implication.” (Citing cases.)

In Gulick v. Justice’s Court, 101 Cal.App. 619 [281 P.

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Related

Caffrey v. Tilton
240 P.2d 273 (California Supreme Court, 1952)
Kaluzok v. Brisson
167 P.2d 481 (California Supreme Court, 1946)
Mills Sales Co. v. Gonzales
304 P.2d 274 (California Court of Appeal, 1956)
Armstrong v. Smith
122 P.2d 115 (California Court of Appeal, 1942)
Gulick v. Justice's Court
281 P. 1031 (California Court of Appeal, 1929)

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186 Cal. App. 2d 895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-thrift-loan-assn-v-hall-calappdeptsuper-1960.