Jensen v. Harry H. Culver & Co.

15 P.2d 907, 127 Cal. App. Supp. 783, 1932 Cal. App. LEXIS 11
CourtAppellate Division of the Superior Court of California
DecidedOctober 31, 1932
DocketCiv. A. No. 1528
StatusPublished
Cited by10 cases

This text of 15 P.2d 907 (Jensen v. Harry H. Culver & Co.) 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
Jensen v. Harry H. Culver & Co., 15 P.2d 907, 127 Cal. App. Supp. 783, 1932 Cal. App. LEXIS 11 (Cal. Ct. App. 1932).

Opinion

BISHOP, J.

The controlling question presented on this appeal is whether or not a municipal court has jurisdiction of an action to recover the sum of $2,000 or less paid pursuant to a contract induced by fraud and rescinded on that ground. ' The complaint in the present action is cast in the form of one for money had and received, but both from the written demand incorporated into the complaint and from the argument made it is apparent that the cause of action thus concealed in the common count is one for the recovery of money which had been paid under a contract since rescinded for fraud. We are of the opinion that the municipal court had jurisdiction.

But for some later decisions which are frequently cited to us as requiring a different conclusion, we would be content to rest our opinion on an early Supreme Court case and on a late decision of the District Court of Appeal, Second District. The argument now stressed, that an action such as ours is one of rescission and is, therefore, in equity rather than in law, was not under debate in the early case of Schroeder v. Wittram, (1885) 66 Cal. 636 [6 Pac. 737], yet the case is worthy of our attention. It, too, dealt with an action for money had and received; one begun in a justice’s court following the rescission of a contract for failure of consideration. The jurisdiction of the court was under attack, but on grounds other than that the case was in equity because an action for rescission; that ground did not suggest itself to counsel or the court. In addition to the significance of silence we have these words in one of the opinions filed in the case (p. 638):

[785]*785“What is known in the civil law as redhibition, and in our law as rescission of the contract, or dissolution of the proposed sale, takes place, and the buyer and seller are restored to their original position—the law vesting the buyer with a right to a return of any money which he may have paid upon the contract, and to a legal remedy to enforce the return of it, by an action against the seller as for money had and received.
“As an action for money had and received, the justice’s court in which the complaint was filed had jurisdiction.”

At the time with which the case dealt (as now), justices’ courts had jurisdiction of cases at law, Constitution, article VI, sections 5 and 11, as does the municipal court, Statutes 1931, page 1717, but not of cases in equity.

Of greater weight is Taback v. Greenberg, (1930) 108 Cal. App. 759 [292 Pac. 279], an appeal from the superior court judgment affirming a judgment of the municipal court. The complaint, the record discloses, was drawn in two counts, the first reciting the making of a contract, payment of money thereunder by the plaintiff, and the subsequent rescission for failure of consideration. The second count recited the formula of an action for money had and received. The relief sought was the return of the amount paid. Succinctly the court commented: “The action was properly brought in the municipal court, because it was merely an action for the recovery of $550 and not for the rescission of a contract, because that was rescinded by the notice of rescission.”

These two decisions are the logical result of the application of well-established principles. There can be no doubt that one having a right to rescind need not turn to the courts to have the rescission accomplished; he may effect it by his own action. (Prewitt v. Sunnymead Orchard Co., (1922) 189 Cal. 723 [209 Pac. 995], McNeese v. McNeese, (1923) 190 Cal. 402 [213 Pac. 36], Maxwell v. Jimeno, (1928) 89 Cal. App. 612 [265 Pac. 885], and Ito v. Watanabe, (1931) 213 Cal. 487 [2 Pac. (2d) 799].) The reluctant response of him as to whom the contract was rescinded may require the help of a court to secure to him, who rescinded, the relief to which he has become entitled. This relief may be such that only a court of equity can furnish it. For examples, see Mesenburg v. Dunn, (1899) [786]*786125 Cal. 222 [57 Pac. 887], and Rocha v. Rocha, (1925) 197 Cal. 396 [240 Pac. 1010]. The relief sought may, however, be the return of personal property. In such case the action commonly known as claim and delivery is appropriate. (McNeese v. McNeese, supra.) This, of course, is an action at law. (See Faulkner v. First Nat. Bank, (1900) 130 Cal. 258 [62 Pac. 463].) If money alone has been transferred by the rescinding party, upon the rescission the law implies a promise to return it, which becomes the basis for a common-law action of money had and received. (Rand v. Columbian Realty Co., (1910) 13 Cal. App. 444 [110 Pac. 322] ; Winkler v. Jerrue, (1912) 20 Cal. App. 555 [129 Pac. 804] ; Fontaine v. Lacassie, (1918) 36 Cal. App. 175 [171 Pac. 812] ; Bridges v. Fisk, (1921) 53 Cal. App. 117 [200 Pac. 71] ; Firpo v. Pacific Mut. Life Ins. Co., (1926) 80 Cal. App. 122 [251 Pac. 657].)

As already mentioned, doubt has been cast upon the conclusion which follows from a recital of these principles, by a statement appearing in the majority opinion in Stone v. Superior Court, (1931) 214 Cal. 272 [77 A. L. R. 743, 4 Pac. (2d) 777], and the application of the Stone case in Ingalls v. Superior Court, (1932) 121 Cal. App. 453 [9 Pac. (2d) 266], and Fair View Farms Co. v. Superior Court, (1932) 123 Cal. App. 9 [10 Pac. (2d) 1011]. The statement referred to, characterizing an action in all essentials the same as the one at bar, is this: “The first count in the plaintiff’s complaint in said action clearly and unmistakably set forth a cause of action for equitable relief . . . ” We are satisfied that neither this statement, nor any of the three cases referred to, requires nor justifies an abandonment of our conclusion that the municipal court had jurisdiction of the action.

First of all, it should be noted that the matter strenuously debated in the Stone case was not the jurisdiction of the court, but whether or not the case was one in which an attachment should issue. The decision was that an attachment should not issue in such an action. The ease, therefore, is not an authority on our jurisdictional question, unless in reaching its decision the court announced principles which are controlling in our situation. But this we find not to be the case. The solution of the Stone case depended on an answer to the question: “ Is the action upon a contract, [787]*787express or implied?” The question was not, “Is the action one at law or one in equity?” What the court stated, therefore, must be understood in the light of the question being debated. A more accurate understanding may be obtained by quoting further statements from the majority opinion. The first begins the paragraph immediately following the one from which we have quoted, in these words: “The cause of action thus set forth was essentially an action sounding in fraud and deceit.” Later it is again stated: “It clearly appears that her only cause of action is one founded upon the defendants’ alleged fraud and deceit.” Again: “plaintiff’s real cause of action . . . was an action sounding in fraud and deceit”. But an action to recover damages in fraud and deceit is an action at law, not in equity. In denying a rehearing in Stephan v. Superior Court, (1920) 183 Cal. 673, 676 [192 Pac.

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Bluebook (online)
15 P.2d 907, 127 Cal. App. Supp. 783, 1932 Cal. App. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jensen-v-harry-h-culver-co-calappdeptsuper-1932.