Konig v. Associated Almond Growers

99 P.2d 678, 37 Cal. App. 2d 360, 1940 Cal. App. LEXIS 536
CourtCalifornia Court of Appeal
DecidedFebruary 17, 1940
DocketCiv. 2509
StatusPublished
Cited by18 cases

This text of 99 P.2d 678 (Konig v. Associated Almond Growers) 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
Konig v. Associated Almond Growers, 99 P.2d 678, 37 Cal. App. 2d 360, 1940 Cal. App. LEXIS 536 (Cal. Ct. App. 1940).

Opinion

THOMSON, J., pro tem.

This is an appeal from an order of the Superior Court of San Luis Obispo County denying a motion for a change of venue to the Superior Court of Santa Barbara County. ,

The plaintiff and respondent brought an action in the Superior Court of San Luis Obispo County for an accounting of receipts and disbursements and for the payment of sums owing to plaintiff in connection with the operation of a certain almond orchard in San Luis Obispo County. The complaint alleges that defendant is a California corporation; that plaintiff purchased from defendant a certain almond orchard in San Luis Obispo County; that by agreement of the parties defendant remained in possession of the almond orchard for a number of years and operated it for plaintiff’s account, with the understanding that, “from the proceeds of such operation by defendant, it would deduct the annual costs thereof, pay the taxes upon said land and credit the overplus to plaintiff”; that the receipts exceeded the expenses and taxes; and also that plaintiff advanced in excess of $2,000 to defendant to cover alleged deficits which defendant, from time to time, represented to plaintiff existed by reason of said operations; that plaintiff demanded from defendant an accounting and the payment of the sums disclosed by such accounting to be due to plaintiff; and that defendant has refused to render such accounting or pay such sums. Plaintiff prays for an accounting and payment of all sums proved to be due.

On the motion for a change of venue defendant proved that its principal place of business was in Santa Barbara County by affidavit, and also by a certificate of change of its principal place of business from San Luis Obispo County, to Santa Barbara County, showing that such removal was effected about two and one-half years after the making of the contract between plaintiff and defendant. No counter affidavits were filed'and no other proof offered. Defendant’s notice of motion for change of venue specified that the motion *363 would be made upon the sole ground of the residence of defendant. The only evidence presented by defendant in support of this motion related solely to the question of defendant’s residence.

This is a personal or transitory action wherein the sole defendant is a California corporation, therefore, section 395 of the Code of Civil Procedure does not apply and resort must be had to the provision of the Constitution which governs the venue of such actions. (Cook v. W. S. Ray Mfg. Co., 159 Cal. 694, 696 [115 Pac. 318].) Article XII, section 16, of the Constitution of California provides that “A corporation or association may be sued in the county where the contract is made or is to be performed, or where the obligation or liability arises or the breach occurs; or in the county where the principal place of business of such corporation is situated, subject to the power of the court to change the place of trial as in other cases.”

Appellant contends that plaintiff’s complaint herein does not allege in any manner, directly or indirectly, by inference or otherwise, that any contract was made, or was to be performed, or that any obligation or liability arose against defendant, or any breach occurred, in the county of San Luis Obispo. If we assume for the present that this contention is correct, was plaintiff required to make any such allegations in his complaint or to offer any proof of such facts on the motion, in order to avoid a change of venue under the facts of this case?

The position of appellant is that, on a motion for a change of venue made by a California corporation which is sole defendant, when defendant, in support of its motion, has shown that its principal place of business is in another county, the burden is upon plaintiff, in order to defeat the motion, to show that the contract was made, or was to be performed, or that the obligation or liability arose, or the breach occurred, in the county where the action was brought. In support of this contention defendant relies upon California Bean Growers Corp. v. C. H. & O. B. Fuller Co., 78 Cal. App. 522 [248 Pac. 967] , Ward v. Great Western Power Co., 135 Cal. App. 687 [27 Pac. (2d) 937], Hammond v. Ocean Shore Dev. Co., 22 Cal. App. 167 [133 Pac. 978], and Krogh v. Pacific Gateway Co., 11 Cal. App. 237 [104 Pac. 697]. In each of these eases the opinion contains a statement to the effect that, where *364 the corporation defendant has shown that the principal place of business is not in the county wherein the action is pending, the burden of proof is upon plaintiff to defeat the motion, but in none of said cases was such statement essential to the decision, nor was it necessary to determine the question of burden of proof. In the case of Rowe v. Policy Holders Life Ins. Assn., 131 Cal. App. 339, 342 [21 Pac. (2d) 443], this court points out that such statements in the last two of said cases relied upon by appellant were dicta and lays down the principal that the burden is not upon the plaintiff, but is upon the corporation defendant to show that the place of filing such an action as this is not the proper county for trial. So far as it relates to such burden of proof, said case of Rowe v. Policy Holders Life Ins. Assn., supra, is cited with approval in Union Oil Co. v. Basalt Rock Co., Inc., 30 Cal. App. (2d) 317, 319 [86 Pac. (2d) 139].

That the burden of proof is upon defendant in such cases is, no doubt, the reasonable view, because a corporation which is the sole defendant in a transitory action, unlike a natural person who is a defendant in such an action, does not have an absolute right to have the action either commenced or removed to the county where its principal place of business is situated, that being its legal residence (Gallup v. Sacramento etc. Drainage Dist., 171 Cal. 71, 74 [151 Pac. 1142]), merely upon the ground that its residence is in a different county from the one in which the action is brought. Under the constitutional provision plaintiff had the right to elect to sue the corporation defendant in the county where the contract sued upon was made, or was to be performed, or in which the- obligation or liability arose, or the breach occurred, and it follows that, having the right to sue the corporation in such county, plaintiff also has the right to have the action tried or prosecuted to a finality in such county, unless the place of trial is changed for some sufficient reason other than that of residence of the corporation defendant. (Lakeside Ditch Co. v. Packwood Canal Co., 50 Cal. App. 296, 302 [195 Pac. 284].) A similar case to the one at bar is the ease of Chase v. South Pacific Coast Railroad Co., 83 Cal. 468, wherein the court said, at page 472 [23 Pac. 532]: ‘ ‘ The only venue laid in the complaint is in the title thereof; there is nothing in the body of it to show within what county the defendant refused to perform its duty as a common car *365 rier toward plaintiffs; but as the court has jurisdiction of the subject-matter of this action . . .

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Bluebook (online)
99 P.2d 678, 37 Cal. App. 2d 360, 1940 Cal. App. LEXIS 536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/konig-v-associated-almond-growers-calctapp-1940.