Merlino v. West Coast Macaroni Manufacturing Co.

202 P.2d 748, 90 Cal. App. 2d 106, 1949 Cal. App. LEXIS 945
CourtCalifornia Court of Appeal
DecidedFebruary 14, 1949
DocketCiv. No. 13739
StatusPublished
Cited by27 cases

This text of 202 P.2d 748 (Merlino v. West Coast Macaroni Manufacturing 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
Merlino v. West Coast Macaroni Manufacturing Co., 202 P.2d 748, 90 Cal. App. 2d 106, 1949 Cal. App. LEXIS 945 (Cal. Ct. App. 1949).

Opinion

PETERS, P. J.

Defendants demurred generally and specially to plaintiff’s first amended complaint. The trial court sustained the demurrer, and granted plaintiff 10 days to amend. [108]*108Plaintiff failed to amend, and judgment was entered for defendants. Plaintiff appeals.

The law applicable to such an appeal is well settled. “A plaintiff who has declined to amend his complaint, after a demurrer sustained, which is both general and special, must stand upon his pleading as against both grounds of demurrer.” (Aalwyn v. Cobe, 168 Cal. 165, 173 [142 P. 79]; see, also, California Trust Co. v. Cohn, 214 Cal. 619 [7 P.2d 297]; Blumen v. Clayburgh, 10 Cal.App.2d 63 [51 P.2d 102]; Craig v. City of Los Angeles, 44 Cal.App.2d 71 [111 P.2d 977].) This does not mean, however, that every ambiguity in a complaint will justify a trial court in sustaining a special demurrer. A demurrer for uncertainty will not lie where the ambiguous facts alleged are presumptively within the knowledge of the demurring party. (Corum v. Hartford Acc. & Ind. Co., 67 Cal.App.2d 891 [155 P.2d 710]; Swasey v. de L’Etanche, 17 Cal.App.2d 713 [62 P.2d 753].) A special demurrer should not be sustained if the allegations are sufficiently clear to apprise the defendant of the issues that must be met, even if the allegations of the complaint may not be as clear and as detailed as might be desired. (People v. Lim, 18 Cal.2d 872 [118 P.2d 472].) Moreover, a demurrer for uncertainty will not lie as to even uncertain and ambiguous allegations, if such allegations refer to immaterial matters. In such event, they will be treated as surplusage and disregarded. Swasey v. de L’Etanche, supra; Aronson v. Bank of America, 42 Cal.App. 2d 710 [109 P.2d 1001]; Penziner v. West American Finance Co., 133 Cal.App. 578 [24 P.2d 501].) Tested by these standards, we think it was error to have sustained the demurrer.

The complaint alleges that the West Coast Macaroni Manufacturing Company is a California corporation," incorporated in 1929 as a wholly-owned subsidiary of the Fresno Macaroni Manufacturing Company, a corporation; that the Fresno Company owns 800 of the 804 issued capital stock of the West Coast Company, the other four shares being owned one share each by the plaintiff, his wife, defendant Borrelli and by his wife; that from December 20, 1934, to April 13, 1945, the Fresno Company had a total of 675 outstanding shares; that plaintiff and defendant Borrelli each owned 336½ shares and each of their wives owned one share; that on April 13, 1945, plaintiff and his wife transferred all of their shares in the Fresno Company to Borrelli pursuant to a court decree in Fresno County; that such decree was rendered in a dissolution proceeding instituted by plaintiff against the Fresno Company; that in that [109]*109action the court decreed that plaintiff and his wife were obligated to transfer their stock in the Fresno Company by virtue of an option owned by Borrelli and his wife; that during all times here involved Borrelli was president and a director of the Fresno Company, his wife was vice-president and director, plaintiff was secretary-treasurer and a director, and his wife was a director; that during all times here involved Borrelli was president and a director of West Coast Company, plaintiff was secretary-treasurer and a director, and his wife was vice-president and a director; that the articles of incorporation of the West Coast Company, and by-laws, provided for four directors, but only three were elected during all times here involved; that at all times here involved the affairs of the Fresno Company and the West Coast Company have been conducted as a partnership between plaintiff and defendant Borrelli ; that dividends have not customarily been declared, but, up until plaintiff was ousted, it was the custom of plaintiff and defendant Borrelli to divide a substantial portion of the earnings of both corporations between themselves as payment of salaries; that when the West Coast Company was incorporated it was orally agreed between plaintiff and defendant Borrelli that so long as plaintiff owned 50 per cent of the stock of the Fresno Company, he would be in active control and would manage the West Coast Company, and would assist defendant in the management of the Fresno Company; that this agreement continued in full force and effect with the modification hereinafter alleged until breached by defendant Borrelli; that plaintiff fully performed all the terms of the agreement and the modification thereto up to the time the agreement was breached; that at the beginning of 1940 the parties modified the agreement to provide that each was to draw $9,000 a year from the consolidated enterprises as long as each should continue to own 50 per cent of the stock of the Fresno Company; that on April 12, 1944, defendant Borrelli called a special meeting of the directors of the Fresno Company; that all four directors were present at the meeting; that Theresa Borrelli introduced, and defendant Borrelli seconded, a resolution purporting to authorize defendant Borrelli to vote the shares of the West Coast Company owned by the Fresno Company; that the two Borrellis voted in favor of the resolution, but plaintiff and his wife voted against it; that in spite of the fact that the vote was a tie vote, defendant Borrelli refused to recognize the vote of the wife of plaintiff [110]*110as a director, and declared the resolution carried by a two-to-one vote; that the by-laws of the Fresno Company had no provision authorizing any officer of the company, or any other person, to vote the stock owned by the corporation; that on November 10, 1944, a-special meeting of the stockholders of the West Coast Company was called by defendant Borrelli for the purpose of electing four directors of the West Coast Company; that there were present at this meeting the holders of only four shares of stock in the West Coast Company, namely, defendant Borrelli (1) share, Theresa Borrelli (1) share, Anastasia Merlino (1) share, and plaintiff, by his proxy A.

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Bluebook (online)
202 P.2d 748, 90 Cal. App. 2d 106, 1949 Cal. App. LEXIS 945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merlino-v-west-coast-macaroni-manufacturing-co-calctapp-1949.