Lee v. Helmco, Inc.

199 Cal. App. 2d 820, 19 Cal. Rptr. 413, 1962 Cal. App. LEXIS 2901
CourtCalifornia Court of Appeal
DecidedFebruary 5, 1962
DocketCiv. 25675
StatusPublished
Cited by9 cases

This text of 199 Cal. App. 2d 820 (Lee v. Helmco, Inc.) 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
Lee v. Helmco, Inc., 199 Cal. App. 2d 820, 19 Cal. Rptr. 413, 1962 Cal. App. LEXIS 2901 (Cal. Ct. App. 1962).

Opinion

FOURT, J.

This is an appeal from the judgment entered upon a verdict of the jury in favor of the plaintiff and against defendant Helmco, Inc. 1

On October 25, 1956, plaintiff filed a complaint for damages for fraud, wherein two causes of action were set forth. The first cause of action alleged that defendant Scanlan was the agent of defendant Helmco, Inc. (hereinafter referred to as “Helmco”) and was acting within the purpose and scope of such agency; that Scanlon made certain promises and representations “. . . without any intention of performing them, or any of them, at the time said promises and representations were made and said promises and representations were not, in fact performed . . . .” and that “. . . Helmco knew that *823 Scanlan made promises and representations without any intention of performing said promises and representations, and with such knowledge, Helmco allowed Scanlan to continue to do so.” The second cause of action incorporated most of the allegations contained in the first cause of action but charged that certain promises and representations were “. . . made by Scanlan at the time when Scanlan had no knowledge or information sufficient to give Scanlan any grounds for believing said promises and representations would or could be performed, and said promises and representations were not in fact performed . . . .” and “. . . that Helmco knew that Scanlan made promises and representations without any knowledge or information sufficient to give Scanlan any grounds for believing said promises and representations would or could be performed, and with such knowledge, Helmco allowed Scanlan to continue to do so.”

On November 9, 1956, the answer of defendant Maurice Scanlan was filed. Therein, among other things, Scanlan “. . . specifically denies that this defendant is now or ever has been the agent of Helmco, Inc. ; alleges that at all times herein mentioned, defendant was a manufacturer’s representative for Helmco, Inc., and as such, acted in the capacity of an independent contractor.” He further denied that he made the promises and representations contained in plaintiff's complaint.

On May 6, 1957, Helmco filed its answer to the complaint. In addition to denying that Scanlan was its agent and denying that promises and representations were made, the answer set forth an affirmative defense. Therein, among other things, the following was alleged in pertinent part:

“III
“On or about October 26, 1955, this answering defendant entered into a written agreement with codefendant, Maurice Scanlan, wherein it was agreed by and between these parties that the said Maurice Scanlan would act as ‘an independent Manufacturers Representative engaged in the sale of Kitchenette units manufactured by Helmco, Inc.’; that he ‘will always be an independent contractor and is not an employee in any sense of Helmco, Inc., or any of its Divisions’; and that he ‘will not have authority to at any time, to obligate Helmco, Inc., or any of its Divisions or personnel, either financially or in any other way.’ Said written agreement continued in *824 full ¡orce and effect during all the times referred to in plaintiff’s complaint. A full, true and exact copy of said written agreement is attached hereto marked exhibit ‘A’ and made a part hereof by reference. 2
“IV
“This answering defendant received a ‘Purchase Order Agreement,’ dated November 28, 1955, naming plaintiff as purchaser, and ordering the Kitchenette units as set forth in plaintiff’s complaint. Said Purchase Order Agreement was solicited by codefendant Maurice Soanlan in his capacity as an independent contractor and was accepted and filled by this answering defendant in the ordinary course of its business. Said Purchase Order Agreement was signed by the plaintiff Harry Lee as purchaser and contained the following express disclaimer: ‘It is expressly agreed that the purchaser is an independent contractor in all relations with Helmco, Inc. and that Helmco, Inc., assumes no obligations other than as the manufacturer of the equipment ordered above.’
“V
“At no time was there made or was there any authorization to make by any officer, employee or agent of this answering defendant, any of the alleged misrepresentations set forth in *825 paragraph III of the first cause of action of plaintiff’s complaint, nor were any of the representations alleged in plaintiff’s complaint to have been made by codefendant Maurice Scanlan ever ratified or adopted by act, word or conduct by this answering defendant.”

The pretrial conference order was filed August 31, 1960. A joint pretrial statement was therein incorporated by reference and provides in pertinent part as follows:

“I Nature of the Case
“This is an action for damages for fraud in connection with the sale of certain vending machines which plaintiff purchased from Helmco., [sic] Inc. in reliance on the false representations of its agent Maurice Scanlan. Plaintiff seeks general damages in the sum of $3,027.39 and punitive damages of $10,000.00 against defendants.
i C
“IV Contentions of the Parties
“1. Plaintiff contends:
“(1) That in November of 1955 defendant Scanlan was the agent of defendant Helmco, Inc., and at all times herein mentioned was acting within the actual control or ostensible authority of either of said defendants.
“(2) On or about November 15, 1955 Scanlan orally represented to plaintiff in connection with the sale of certain vending machines that (a) said machines would be delivered and installed in Beverly Hills and Hollywood, California by December, 1955, (b) that Scanlan would furnish plaintiff with locations for said vending machines which were similar to certain designated restaurants in Los Angeles, and (c) that after installation of said vending machines in said locations would produce from $200.00 to $300.00 a month revenue and require only one day’s time for service.
“(3) In reliance upon said representations plaintiff purchased 10 vending machines from defendant and paid the sum of $2,990.00 therefor.
“(4) Plaintiff relied upon said representations and the representations were material to that transaction.
“ (5) Each of said representations was false and was made by defendant Scanlan without any intention of performing said representations and further that said representations were made by Scanlan without any knowledge or information *826 sufficient to give Scanlan grounds for believing the representations would or could be performed.
“(6) Said vending machines were without value and are worthless to plaintiff and plaintiff has suffered actual damage in the sum of $3,027.39.

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Bluebook (online)
199 Cal. App. 2d 820, 19 Cal. Rptr. 413, 1962 Cal. App. LEXIS 2901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-helmco-inc-calctapp-1962.