Manuel v. Calistoga Vineyard Co.

61 P.2d 1204, 17 Cal. App. 2d 377, 1936 Cal. App. LEXIS 577
CourtCalifornia Court of Appeal
DecidedNovember 6, 1936
DocketCiv. 5464
StatusPublished
Cited by5 cases

This text of 61 P.2d 1204 (Manuel v. Calistoga Vineyard Co.) 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
Manuel v. Calistoga Vineyard Co., 61 P.2d 1204, 17 Cal. App. 2d 377, 1936 Cal. App. LEXIS 577 (Cal. Ct. App. 1936).

Opinion

PULLEN, P. J.

This is an appeal from a judgment based upon a verdict of a jury awarding to plaintiff the sum of $1484.80 for grapes delivered to defendants.

*379 Originally the complaint was in three counts. To this complaint a general demurrer was interposed and overruled, whereupon defendant answered. Upon the trial a nonsuit was granted as to the first two causes of action in the complaint, of which ruling no complaint is made so that we confine ourselves to the consideration of the third count in the complaint.

This count alleges the corporate capacity of the Calistoga Vineyard Company, Ltd., and that this corporation had assumed the assets and liabilities of the Calistoga Vineyard Company, a preexisting partnership. It then alleges that during the months of August, September and October, 1930, Thomas A. Turner was the agent of defendant company, a partnership, for the purpose of purchasing, obtaining and negotiating for the sale of grapes to and through the Calistoga Vineyard Company, a copartnership; that in the course of his employment as agent he represented and promised to plaintiff that if plaintiff would sell his grape crop to Calistoga Vineyard Company, said company would pay him $30 a ton therefor. Plaintiff, it is alleged, believed and relied upon said representations and delivered to the company a specified number of tons, and by an amendment permitted at the time of trial, plaintiff set forth he would not have so sold and delivered the grapes to defendant were it not for the fact he believed and relied upon such representations.

It is also alleged that at the time the representations were made they were made fraudulently by the agent of defendant for the purpose of deceiving plaintiff into delivering his grape crop to the Vineyard Company, and in making said promise to plaintiff, the agent did not believe the same and it was made without intention of performance. This briefly is the gist of the cause of action upon which the case was tried.

Appellants point out various deficiencies in the complaint, claiming there was no allegation that the statement the company would pay $30 per ton for the grapes was false; there was no allegation that the company would not have paid plaintiff for the grapes if they had been sold by him to the company or that he did in fact sell his grapes to the company, or that the agent knew the statements were untrue, or that the company had any notice or knowledge of the representations of Turner, or that the company would *380 not, upon demand, have carried out the agreement. It will be observed that the action is not for the fraudulent representations of existing facts but in making promises without any intention of performance. These deficiencies in the complaint, if they were, such, could have been reached by special demurrer, but in the absence of such a demurrer-they cannot now be considered. A reference to the third count of the complaint will show that the facts demanded by appellant appear at least by inference, being at most an insufficient statement of the facts, and not insufficient facts, and it has been frequently held the objection that essential facts appear only inferentially must be raised by special demurrer. (City of Santa Barbara v. Eldred, 108 Cal. 294 [41 Pac. 410]; 21 Cal. Jur. 108.) The third count was therefore sufficient against a general demurrer.

Upon the motion for a nonsuit appellants urged that the evidence was insufficient to sustain certain material allegations, and among others, that the evidence failed to show that Turner had any authority to purchase grapes for the company or that the company had knowledge of any purchase of grapes from plaintiff by Turner, or that the company accepted or had any knowledge that the grapes were delivered by plaintiff to it as owner.

Respondent recognizes the rule that where a third party seeks to hold a principal to a guaranty made by an agent, the burden is upon such party to prove the authority of the agent- to make the contract. Such was the holding in the case of Peterkin v. Randolph Marketing Co., 48 Cal. App. 300 [191 Pac. 947], for that judgment was reversed on the ground that there was no actual authority and no evidence tending to show any act on the part- of the defendant from which a conclusion could be drawn that the agent had apparent authority to either purchase or guarantee a price at which it was to be sold. In that case, however, the court conceded it to be the law that if the agent was clothed with ostensible authority the principal was estopped from denying that the agent was authorized to make the agreement. In the case of Perkins v. Pacific Fruit Exchange, 132 Cal. App. 278 [22 Pac. (2d) 535], the court not- only held there was no evidence that the agent was expressly or impliedly authorized to make the guaranty of a minimum return but further held that the grower must be *381 presumed to have knowledge that under the terms of the “Deciduous Fruit Dealers Act” of 1929 (Deering’s Gen. Laws, Act No. 6155) under which the fruit company therein was authorized to act, that neither the principal nor the agent could legally make the contract sued upon in that the appellant was not a deciduous • fruit dealer under the act, but came within the terms of a “consignment shipper” as defined therein.

In the case at bar defendants and appellants had a deciduous fruit dealer’s license authorizing “the purchase of deciduous fruits from the producer on credit, or to verbally or in writing guarantee a price to the producer of deciduous fruits received from the producer on consignment, or to verbally solicit from the producer deciduous fruits to be used on an order at a named price”, and did not come within the terms of a “consignment shipper” as defined by the act; and under the presumption that the ordinary course of business had been followed, respondent had a right to believe that the defendants were deciduous fruit dealers and acted as such and did not act as a “consignment shipper”.

In the instant case the plaintiff testified that Turner represented to him that he was acting for the Calistoga Vineyard Company, and that this company had contracts for the sale of a large quantity of grapes but did not have enough grapes to fill the order, and that there was money in the bank on deposit on this contract, and promised him $30 per ton for his grapes, and agreed that he would receive $500 on account, and believing and relying upon these representations, delivered his crop to the Calistoga Vineyard Company.

Upon the question of ostensible authority, that is, such authority as a principal, intentionally or by want of ordinary care, causes or allows a third party or the agent to possess, the evidence discloses that Charles Forni, one of the copartners in the Calistoga Vineyard Company, testified that Turner was employed to go among the growers for the purpose of soliciting grapes for consignment and further testified that Turner acted for him at the receiving platform of the Southern Pacific depot, at Calistoga. The witness admitted that he purchased grapes during the year 1930. It also appeared that about the time plaintiff claims to have had the agreement with Turner, Forni is alleged to have had *382

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Cite This Page — Counsel Stack

Bluebook (online)
61 P.2d 1204, 17 Cal. App. 2d 377, 1936 Cal. App. LEXIS 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manuel-v-calistoga-vineyard-co-calctapp-1936.