Redington v. Cornwell

27 P. 40, 90 Cal. 49, 1891 Cal. LEXIS 881
CourtCalifornia Supreme Court
DecidedJune 30, 1891
DocketNo. 13008
StatusPublished
Cited by43 cases

This text of 27 P. 40 (Redington v. Cornwell) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redington v. Cornwell, 27 P. 40, 90 Cal. 49, 1891 Cal. LEXIS 881 (Cal. 1891).

Opinion

Vanclief, C.

—This appeal is from a final judgment in favor of the defendant, rendered on demurrer to plaintiff’s third amended complaint in two counts, and presents for decision the general question, Should the demurrer have been sustained?

The facts alleged in the first count of the complaint are substantially as follows: —

During a period of time embracing all the transactions alleged, the plaintiff and defendant were stock[53]*53holders and directors of the Redington Quicksilver Company, a California corporation, and the plaintiff was president of the board of directors. During the same period the subscribed capital stock of the corporation consisted of 1,260 shares, of which the defendant owned 461 shares. From September 1, 1879, until June 1, 1882, the corporation had “a mutual, open, and current account” with Redington & Co., a copartnership. At divers times during that period the copartnership received from the corporation consignments of quicksilver, which it sold and disposed of for the corporation, and collected the proceeds thereof, advanced and loaned money to the corporation, and paid out money for its use, and also received partial payments from the corporation on the account. In this account the corporation was debited with all moneys loaned and advanced to it, and with all sums paid out and expended for its use by the copartnership, and was credited with all proceeds of sales of quicksilver, and with all payments made on the account.

On June 1, 1882, the copartnership and the corporation had an accounting, by which it was found that there was a balance of $64,126.24 due from the latter to the former, for which the corporation then made its promissory note, of which the following is a copy: —

“ $64,126.24. 8an Francisco, June 1, 1882.
“On demand, for value received, the Redington Quicksilver Company hereby promises to pay to Mess. Redington & Company, or order, at its office in San * Francisco, sixty-four thousand one hundred and twenty-six 24-100 dollars, with interest thereon at the rate of eight (8) per cent per annum until paid. Interest payable monthly, and if not so paid, to become a part of the principal, and bear a like interest.
[Signed] “ The Redington Quicksilver Company.
“John H. Redington, President.
[Corp. Seal.] “ George Penlington, Secretary.”

[54]*54After formally alleging the above facts, the complaint proceeds as follows:—

“ 6. That thereafter, to wit, on or about the seventh day of June, 1882, said firm of Eedington & Co. pressed for and demanded of the said corporation the collection and payment of the balance of the indebtedness aforesaid and of said promissory note; that at the time of said demand said corporation was wholly without funds wherewith to pay the same; that thereupon, to wit, on or about the said last-named day, at said city and county of San Francisco, this plaintiff, in good faith, and for the honor, use, and benefit of the said ‘The Eedington Quicksilver Co.,’ advanced and paid the said sum of $64,126.24 to said firm of Eedington & Co., in full satisfaction and dischárge of the said balance, and of the said indebtedness evidenced by the said promissory note; that thereby all of the indebtedness of said corporation then subsisting to said Eedington & Co., and all claims and demands of said firm upon said corporate note, were fully paid and extinguished; that said Eedington & Co. thereupon surrendered and delivered said promissory note to this plaintiff;
“ 7. That no payments have been made by said corporation, or on its behalf, or at all, upon said account, or the said balance thereof, or upon said indebtedness evidenced by said promissory note, or upon or on account of said sum so advanced by said plaintiff, except the sum of $24,126.24, which was repaid to plaintiff thereon on or about the thirty-first day of May, 1884, and that on said thirty-first day of May, 1884, there remained and was, and that there now is, due and wholly unpaid from said ‘The Eedington Quicksilver Co.’ to this plaintiff of the said balance and of the said indebtedness, and of said sum advanced by plaintiff as aforesaid, the sum of $40,000, with interest thereon from said last-named day, together with interest upon the sum of $24,126.24 from the seventh day of June, 1882, up to said thirty-first day of May, 1884;
[55]*55“8. That at all the times and dates aforesaid the said defendant was one of the directors of the said ‘ The Redington Quicksilver Co.’; that as such director he acted for said corporation in and about the execution of said promissory note, and also in incurring the indebtedness evidenced thereby, and in making the payments that have been made on account of the same as aforesaid; that said defendant, as such director, and also individually, had at all the times and dates aforesaid full notice and knowledge of the facts herein-above alleged, and of each and every one thereof; that he has at all the times, and with notice and knowledge, as aforesaid, acquiesced in, confirmed, and ratified all and singular the acts of said corporation, and of said firm of Redington & Co., and of this plaintiff, hereinabove mentioned and averred;
“ 10. That by reason of the premises defendant is, and at all the times since the said thirty-first day of May, 1884, has been, liable and holden to plaintiff for S of the said sum of $40,000, and of the interest remaining due to plaintiff from'said corporation as aforesaid, to wit, the sum of $14,635, together with interest thereon from the said thirty-first day of May, 1884, at the legal rate, together with of the interest at the legal rate upon the said sum of $24,126.24 from the seventh day of June, 1882, to the thirty-first day of May, 1884;
“ 11. That though frequently requested so to do, the said defendant has hitherto wholly failed, neglected, and refused to pay to plaintiff the said last-mentioned sum or i he said interest, or any part thereof;
12. That upon receiving from defendant payment of his proportionate part of the balance and indebtedness aforesaid due from said corporation to this plaintiff, and of the moneys so as aforesaid advanced and paid by plaintiff, and of said interest, this plaintiff is ready and willing, and now here and hereby offers to discharge and [56]*56satisfy to the extent of such payment the said obligation of the said corporation, or of its stockholders to this plaintiff, and otherwise to abide by and perform the judgment of this court touching the same.”

The second count is upon another promissory note of the corporation to the same copartnership firm for the sum of $14,800.43, dated December 31,1883, for abalance of the account running to the date of this second note. In all other respects the second count is like the first.

The grounds of the demurrer are,— 1. That neither count states facts sufficient to constitute a cause of action; and 2. That both counts appear to be barred by subdivision 1 of section 338 of the Code of Civil Procedure.

1.

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Cite This Page — Counsel Stack

Bluebook (online)
27 P. 40, 90 Cal. 49, 1891 Cal. LEXIS 881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redington-v-cornwell-cal-1891.