Paganucci v. Kalpouzos

178 P.2d 62, 78 Cal. App. 2d 714, 1947 Cal. App. LEXIS 1523
CourtCalifornia Court of Appeal
DecidedMarch 24, 1947
DocketCiv. 3524
StatusPublished
Cited by6 cases

This text of 178 P.2d 62 (Paganucci v. Kalpouzos) 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
Paganucci v. Kalpouzos, 178 P.2d 62, 78 Cal. App. 2d 714, 1947 Cal. App. LEXIS 1523 (Cal. Ct. App. 1947).

Opinion

MARKS, J.

This is an appeal from a judgment giving plaintiffs possession of a tractor for the purpose of sale in the liquidation of the affairs of a joint enterprise conducted by plaintiffs, copartners, operating under the name of Half Moon Fruit and Produce Company, on the one hand, and Peter Kalpouzos on the other, and from the order denying a motion for new trial, which is not appealable. The complaint is in the usual form found in claim and delivery actions, alleging in plaintiffs the ownership and right of possession of the tractor.

Plaintiffs, as copartners, were engaged in the business of shipping and selling farm and orchard produce as commission merchants. Kalpouzos was a farmer. During the cropping year of 1943, plaintiffs financed the farming operations of *716 Kalpouzos and shipped and sold his crops. The result was a net loss. These parties also engaged in a similar operation during the cropping season of 1944, which, they contend also resulted in a net loss.

The agreement between plaintiffs and Kalpouzos was oral, and besides requiring plaintiffs to advance the money to pay operating costs of the farming operations, included the purchase of the tractor in question and other farming equipment, the purchase price of which was to be advanced by plaintiffs.

The tractor was purchased from Budd and Quinn. It was stipulated that their sales manager, if present, would have testified as follows: “Memoranda: 11th month, 17th day, ’43. Customer’s order for tractor. Signed by Pete Kalpouzos. Released by government to Peter Kalpouzos, 11-17-43. Granted, 12-30-43; Billed by girl here to Peter Kalpouzos and Half Moon Fruit Company. Box—looks like 2725. Anyway that is February 18, 1944. The receipt showed, Paid, and (by) Half Moon, February 21, 1944. I think that item there is the check that Half Moon sent in payment of it. February 21, 1944.” This evidence was not contradicted.

The agreement for the joint operation was made late in the year 1943, between Paul G. Smith, the authorized agent of plaintiffs, and Kalpouzos. According to the evidence plaintiffs were to secure 160 acres of farming land, advance the money for the purchase of the tractor and other implements, for seed, and for farming the land and maturing the crops. Kalpouzos would prepare the land for planting, plant and mature the crops and deliver them to plaintiffs for sale. Plaintiffs would sell the crops, pay the owner of the land 50 per cent of the selling price as rent, repay themselves the money advanced and divide the net proceeds equally between plaintiffs and Kalpouzos. A statement of account of some kind was introduced in evidence but it is not before us. While the evidence indicates that this account showed a net loss of $4,430, probably including the cost of the tractor and other farming equipment, there is not one word of evidence indicating that, the figures it contained correctly reflected the transactions or the correct balance between the parties.

Late in 1944, a tractor cultivator, purchased for these farming operations, was in the possession of plaintiffs and the tractor was in the possession of Kalpouzos, who, with Jim Nicholas, was farming other land near Fresno. Andrew Kufis had a chattel mortgage on the tractor. Neither Nicholas nor *717 Kufis have appealed so they need no further attention here as the portion of the judgment against them has become final.

The trial court found that plaintiffs and Kalpouzos were joint adventurers in a joint enterprise; that in accordance with the joint enterprise agreement plaintiffs “were . . . entitled to possession of said tractor for the purpose of liquidating the same for and on behalf of said joint enterprise.” Conclusions of law were drawn in part as follows:

“That the plaintiffs are entitled to the possession of that certain D-2 Caterpillar Tractor, . . . for the purpose of the joint enterprise consisting of the plaintiffs and Peter Kalpouzos, and that the said tractor is a part of the assets of said Joint enterprise, and as such the plaintiffs are entitled to the possession thereof for the purpose of liquidating the same and applying the funds obtained therefor to the assets of said joint enterprise.”

It is the theory of Kalpouzos that there was no joint enterprise ; that his farming operations constituted an undertaking of his own which plaintiffs agreed to finance; that his sole duty was to farm the land, raise the crops and deliver them to plaintiffs for sale; that if the operations resulted in a loss his only obligation was to pay plaintiffs any balance due them as an unsecured debt.

The trial judge, on ample evidence, found against these contentions and concluded that the parties to the agreement were joint adventurers. This finding is final on that question here. As said in Nelson v. Abraham, 29 Cal.2d 745 [177 P.2d 931]:

“Whether the agreement to share profits is merely to provide a measure of compensation for services or for the use of money, or whether it extends beyond and bestows ownership and interest in the profits themselves so as to constitute the undertaking a partnership or a joint venture, presents primarily questions of fact. (Spier v. Lang, 4 Cal.2d 711, [53 P.2d 138].) It has been said to be a ‘mingled problem of law and fact. ’ (Swanson v. Siem, supra, 124 Cal.App. 519, 523 [12 P.2d 1053], citing 20 R.C.L. 849, § 55.)”

Further, as the interpretation put on the contract by the trial judge is reasonable we may not substitute another for it. (Universal Sales Corp. v. California etc. Mfg. Co., 20 Cal.2d 751 [128 P.2d 665].)

Kalpouzos now argues that, assuming there was a joint *718 enterprise, no accounting had been had and no definite amount of the loss, if any, had been determined, which seems to be true; that therefore the sole remedy available to plaintiffs was in an action for accounting in which the remaining assets of the joint adventure might have been sold and the proceeds applied to the debts, if any, or divided between the joint adventurers if the accounting should disclose a profit.

In reply plaintiffs argue that a joint adventure differs in many respects from a partnership so that an accounting is not the sole remedy available to plaintiffs; that one joint adventurer may sue another, under some circumstances, other than by an action for accounting. This is a correct but very general statement of the law. (Nelson v. Abraham, supra; Els bach v. Mulligan, 58 Cal.App.2d 354 [136 P.2d 651]; Keyes v. Nims, 43 Cal.App. 1 [184 P. 695]; 30 Am.Jur. p. 707, § 57.) The rule is thus stated in 14 California Jurisprudence 765:

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Bluebook (online)
178 P.2d 62, 78 Cal. App. 2d 714, 1947 Cal. App. LEXIS 1523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paganucci-v-kalpouzos-calctapp-1947.