Margolis v. Superior Court

311 P.2d 167, 151 Cal. App. 2d 333, 1957 Cal. App. LEXIS 1763
CourtCalifornia Court of Appeal
DecidedMay 28, 1957
DocketCiv. No. 17620
StatusPublished

This text of 311 P.2d 167 (Margolis 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
Margolis v. Superior Court, 311 P.2d 167, 151 Cal. App. 2d 333, 1957 Cal. App. LEXIS 1763 (Cal. Ct. App. 1957).

Opinions

WOOD (Fred B.), J.

Petitioners Harry and Ann Margolis seek a writ of mandate to require the superior court to proceed with the trial of an action wherein they are plaintiffs and United States Hoffman Machinery Corporation is defendant, an action for the conversion of certain dry cleaning equipment. The superior court has continued the trial of that action until the judgment becomes final in a claims and delivery action involving the very same equipment, an action wherein A. M. Grupp and Melvin A. Schiller, copartners, are plaintiffs and Margolis and wife are defendants, the Hoffman Corporation not being a party thereto. The judgment awarded this equipment to Grupp and Schiller but is not final because Margolis’ appeal therefrom is still pending.

The main question is whether or not this judgment if and when it becomes final without modification will be determinative of one or more of the issues in the action not yet tried. (See Houghton v. Superior Court, 187 Cal. 661 [203 P. 765].)

The disparity of parties adversary to Margolis (Grupp and Schiller in one action; The Hoffman Corporation in the other) does not necessarily compel a negative answer. (See Bernhard v. Bank of America, 19 Cal.2d 807 [122 P.2d 892]; 2 Witkin, California Procedure 1751, Trial, §24; 3 Witkin, California Procedure 1926-1929 and 1956-1962, Judgment, §§ 44-45 and 68-70.)

In the instant case, may it be said that one or more issues are common to both actions and that there is such a privity of interest between Grupp and Schiller and the Hoffman Corporation as would entitle the latter to invoke the Grupp and Schiller judgment as determinative of such issue or issues if and when the judgment becomes final?

Let us consider first, in their sequence, certain significant events that are not in dispute. In March, 1953, the Karps, owners of certain improved real estate, borrowed $6,000 of Margolis, giving as security a deed to the realty and a bill of sale for certain personalty (not including the equipment here involved). Later, Margolis reconveyed and the Karps gave Margolis a deed of trust and chattel mortgage to secure the loan.

In April, 1953, the equipment in question, which the Karps purchased from Hoffman, was installed in a building situate on the real property mentioned.

In February, 1954, Hoffman removed the equipment, Karps assertedly having failed to complete the purchase price.

In March, 1954, Eli Rosen bought the equipment from Hoff[335]*335man and sold it to the Karps upon a conditional sales contract. The Karps installed the equipment upon the premises. Thereafter and prior to October 29,1954, Kosen sold to Grupp and Schiller his interest in the equipment and in the contract of sale.

On September 1, 1954, Margolis bought the real property at a foreclosure sale conducted by the trustee, pursuant to the deed of trust given to secure the loan from Margolis to Karps.

The court among other things found that on several occasions between October 19, 1954, and February 10, 1955, the date of the filing of the complaint, Grupp and Schiller demanded and Margolis refused delivery of possession of the equipment; that Grupp and Schiller were entitled to possession on and after October 19, 1954; and that Margolis had no interest, ownership or right to the possession of the equipment.

Margolis’ theory seems to be that the action not yet tried involves a transaction quite separate and distinct from and independent of the transaction involved in the action which has gone to judgment. In effect, he says that the removal by Hoffman in February, 1954, was a tortious interference with Margolis’ security interest in the realty (the equipment having been so installed as to be a part of the realty); that Margolis has chosen to waive his right to follow that property, by electing to sue Hoffman for the value of it. He then argues, in effect, that the repurchase and reinstallation by Karps was a new and separate transaction, as much so as if Karps had bought other equipment (not the Hoffman installed and removed equipment) from some other manufacturer or distributor (not Hoffman). His argument concludes with the claim that the judgment in question decides issues peculiar to the second transaction; especially, that it is not determinative of the status of the equipment as installed in 1953 and later removed by Hoffman. This line of reasoning, if correct, would seem to entitle Margolis to the writ requested.

Counsel for Hoffman say that not only is this the same equipment, with Margolis’ title based upon the same security instruments in each case, but that the equipment was installed in identical fashion each time and Kosen’s title (likewise Grupp and Schiller’s title) stems from Hoffman, thus furnishing the necessary privity or tie-in between the two transactions. Implied, we think, is the claim that in the action which went to judgment Margolis was asserting and trying title to this equipment predicated not only upon its having become a part of the realty when reinstalled (because of the manner of in[336]*336stallation) but also upon the title acquired by Margolis when it was first affixed. If it became a part of the realty when first affixed and Margolis’ interest attached thereto, Margolis would not lose title upon its wrongful removal by Hoffman nor could Hoffman defeat that title by “selling” to Rosen, nor Rosen by “selling” to Karp and to Grupp and Schiller. Title would continue in Margolis. (Civ. Code, § 1743; Swim v. Wilson, 90 Cal. 126 [27 P. 33, 25 Am.St.Rep. 110, 13 L.R.A. 605] ; Woodsend v. Chatom, 191 Cal. 72, 79 [214 P. 965]; Barthelmess v. Cavalier, 2 Cal.App.2d 477 [38 P.2d 484]; 22 Cal.Jur. 908, Sales, § 6; 46 Am.Jur. 620, 622, Sales, §§ 458, 459.)

If Margolis tried his title to this equipment he should have presented both sources of his asserted title: (1) the title he acquired when the equipment was first installed, a title not defeasible by wrongful removal by Hoffman, rendering Hoffman incapable of passing title to or vesting it in Rosen, Karp or Grupp and Schiller (unless Margolis chose to ratify the taking and hold Hoffman for the value of the property taken), and (2) the title Margolis claims he acquired when Karp and Rosen reinstalled the equipment. If he presented one source of title and not the other he may have split his cause of action.

Our examination of the record upon the appeal from the judgment indicates that Margolis tendered both sources of title for consideration and decision. We gather this from the pleadings, the findings and the briefs in that action.

In the first affirmative defense to their answer to the Grupp and Schiller complaint, Margolis and wife alleged that they “are the legal owners of all of the property . . . [the equipment in question] . . . and were such at all times material to this action.” (These allegations the court found untrue.) Attached to the answer physically and as a part of the same document the defendants Margolis pleaded a cross-complaint in three counts. Among the allegations are these: This equipment was purchased by Karp from Hoffman in 1952 and placed on the realty in April, 1953, remained there until about February 18, 1954, when it was removed by Hoffman with the knowledge and participation of Karp and Rosen. It was returned and reinstalled in March, 1954.

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Related

Barthelmess v. Cavalier
38 P.2d 484 (California Court of Appeal, 1934)
Supermatic Products Corp. v. Hegberg
280 P.2d 152 (California Court of Appeal, 1955)
Bernhard v. Bank of America National Trust & Saving Association
122 P.2d 892 (California Supreme Court, 1942)
Brady v. Kobey
81 P.2d 263 (California Court of Appeal, 1938)
Woodsend v. Chatom
214 P. 965 (California Supreme Court, 1923)
Houghton v. Superior Court
203 P. 765 (California Supreme Court, 1922)
Swim v. Wilson
27 P. 33 (California Supreme Court, 1891)

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Bluebook (online)
311 P.2d 167, 151 Cal. App. 2d 333, 1957 Cal. App. LEXIS 1763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/margolis-v-superior-court-calctapp-1957.