MacLeod v. Superior Court

251 P.2d 728, 115 Cal. App. 2d 180, 1952 Cal. App. LEXIS 1786
CourtCalifornia Court of Appeal
DecidedDecember 30, 1952
DocketCiv. 19295
StatusPublished
Cited by6 cases

This text of 251 P.2d 728 (MacLeod v. Superior Court) 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
MacLeod v. Superior Court, 251 P.2d 728, 115 Cal. App. 2d 180, 1952 Cal. App. LEXIS 1786 (Cal. Ct. App. 1952).

Opinions

WOOD (Parker), J.

This is an original proceeding in mandamus to require the superior court to set aside its order authorizing the taking of depositions to perpetuate testimony.

' Ruth Norris filed an application in the superior court for an order authorizing the examination of witnesses, in which she alleged that: She expects to be a party to an action in the superior court of this state. She expects the adverse parties to be John MacLeod, Fred H. Brown, Elizabeth MacLeod, George W. Loring, Highland Builders, Inc., and Maceo Corporation (setting forth the address of each one). She is, and has been since January 10, 1948, an owner of common stock in Maceo Corporation. At all times therein mentioned John MacLeod is and was a director and president of Maceo, Elizabeth McLeod was his wife, Fred H. Brown was a director and [181]*181officer of Maceo, and George W. Loring was an attorney for Maceo. At all times therein mentioned Fred H. Brown was a director and president of Highland Builders, Inc., a corporation, and Elizabeth MacLeod was a director and secretary of Highland Builders. At all times therein mentioned Fred H. Brown, George W. Loring and Elizabeth MacLeod were the agents of John MacLeod. Upon information and belief, Ruth Norris alleges that prior to June 3, 1944, Maceo entered into a contract, performance of which is not yet completed, to build an addition to Mills Field Airport, and to furnish the sand, gravel, dirt and other fill material; about June 13, 1944, John MacLeod caused Highland Builders, through his agents Brown, Elizabeth MacLeod and Loring, to purchase certain real property, referred to as the “quarry property,” located within 3 miles of Mills Field; said quarry property was purchased for the purpose of selling earth therefrom to Maceo for its use in performing its contract to enlarge Mills Field and other construction work; the purchase price of the quarry property was $51,500, of which amount $15,000 was paid in cash and the balance was payable in seven monthly installments—the first on July 1, 1944, and the last on January 1, 1945; from July 1, 1944, to the present, Highland Builders has sold Maceo large quantities of gravel, rock and other fill materials which Maceo used in extending Mills Field and in other construction work, and that Highland Builders received large profits from said sale. The quarry property was needed by Maceo in its ordinary operations, particularly in the performance of its contracts at Mills Field, which need was known by John MacLeod and the other petitioners herein. The purchase by Highland Builders constituted the seizure of a corporate opportunity, and by reason of said seizure Maceo Corporation sustained damages in excess of $50,000. Said mentioned adverse parties, except Maceo, have received large profits and advantages, and all of the profits and advantages which they have received and which they will receive in the future are the property of Maceo and are held by said adverse parties as constructive trustees for the use and benefit of Maceo. By reason of the purchase of the quarry property and of the sale of sand and other materials therefrom to Maceo, John MacLeod and Fred H. Brown violated their fiduciary duties as directors and officers of Maceo. John and Elizabeth MacLeod, Fred H. Brown and George W. Loring will be necessary and material witnesses for Ruth Norris in the trial of the expected action, and they have knowledge, [182]*182information and documents pertaining to the facts, in regard to which such action is expected, which will be necessary and material evidence therein. Ruth Norris expects to prove and establish by their testimony and documents all the facts above set forth.

On January 25, 1952, the superior court made an order directing that the petitioners herein be examined and their depositions taken in accordance with the provisions of section 2086 of the Code of Civil Procedure.

Thereafter, petitioners made motions for an order vacating the said order for examination of petitioners on the grounds, among others, that the application of Ruth Norris does not state facts sufficient to entitle her to such examination of witnesses; that she was never at any time a stockholder of Maceo Corporation, dissolved on January 5, 1948; that she did not become a registered stockholder until August 9, 1950; and that it affirmatively appears from the application that the transaction of which she complains occurred in 1944 and that she was not a shareholder at that time.

In support of said motions, two affidavits of H. 0. Miller were filed in which it is recited that Mr. Miller is a trust officer of Citizens National Trust and Savings Bank and, as such, is the official custodian of the stock register of Maceo Corporation; and that Ruth Norris first became a registered shareholder of Maceo Corporation on August 9,1950. An affidavit of W. B. Von Kleinsmid was also filed, in support of one of said motions, which recited that Maceo Construction Company was organized on January 31, 1929; on September 5, 1946, said corporation changed its name to Maceo Corporation; on January 5, 1948, said corporation was dissolved; from November 1, 1943, to and including January 5, 1948, Mr. Von Kleinsmid was the secretary of said corporation and had custody of the records of said corporation; Ruth Norris was never a stockholder of said Maceo Corporation, now dissolved; on October 8, 1947, Maceo Corporation of California was organized, and on January 6, 1948, it changed its name to Maeco Corporation; Mr. Von Kleinsmid is and has been since October 16, 1947, the secretary of said corporation and has custody of the records of said corporation; the name of Ruth Norris did not appear on the records of said corporation as a stockholder until August 9, 1950. Ruth Norris filed an affidavit, in opposition to said motions to vacate the order for examination of petitioners, in which it was recited that on January 10, 1948, she and her husband acquired, out of com[183]*183munity funds, common stock of Maceo Corporation, which stock was registered in her husband’s name; that on October 5, 1951, she acquired said stock as her separate property and it was registered in her name on March 17, 1952.

The superior court made an order denying said motions of petitioners; and it made a further order setting a time for taking the depositions and ordering petitioners to comply with the order for examination made on January 25, 1952.

It is alleged in the petition for a writ of mandamus herein that the orders made in said proceeding to perpetuate testimony are without the jurisdiction of the superior court, in that, said application of Ruth Norris shows on its face that she can never become a party to the action contemplated by her.

Petitioners contend that the application for the order to perpetuate testimony should show that the applicant, Ruth Norris, was a registered shareholder of Maceo at the time of the transaction or during a part of the transaction. Their contention is based upon section 834 of the Corporations Code which provides in part: “(a) No action may be instituted or maintained in the right of any . . . corporation by the holder ... of shares ... of such corporation unless . . .: (1) The plaintiff alleges in the complaint that he was a registered shareholder ... at the time of the transaction or any part thereof complained of. . .

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219 Cal. App. 2d 469 (California Court of Appeal, 1963)
Greyhound Corp. v. Superior Court
364 P.2d 266 (California Supreme Court, 1961)
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318 P.2d 812 (California Court of Appeal, 1957)
Melancon v. Superior Court
268 P.2d 1050 (California Supreme Court, 1954)
MacLeod v. Superior Court
251 P.2d 728 (California Court of Appeal, 1952)

Cite This Page — Counsel Stack

Bluebook (online)
251 P.2d 728, 115 Cal. App. 2d 180, 1952 Cal. App. LEXIS 1786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macleod-v-superior-court-calctapp-1952.