San Francisco Newspaper Printing Co. v. Superior Court

170 Cal. App. 3d 438, 216 Cal. Rptr. 462, 11 Media L. Rep. (BNA) 2491, 1985 Cal. App. LEXIS 2248
CourtCalifornia Court of Appeal
DecidedJuly 2, 1985
DocketH000535
StatusPublished
Cited by9 cases

This text of 170 Cal. App. 3d 438 (San Francisco Newspaper Printing Co. 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
San Francisco Newspaper Printing Co. v. Superior Court, 170 Cal. App. 3d 438, 216 Cal. Rptr. 462, 11 Media L. Rep. (BNA) 2491, 1985 Cal. App. LEXIS 2248 (Cal. Ct. App. 1985).

Opinion

Opinion

BRAUER, J.

Petitioner San Francisco Newspaper Printing Company, Inc. (SFNA) applies for a writ of mandate or prohibition directed to the Superior Court, Santa Clara County to dissolve an injunction pendente lite. SFNA is a defendant in an action brought by Miller as executrix of the estate of John R. Conway. The lawsuit seeks to establish that two identical written newspaper dealership agreements, one for the San Francisco Examiner and one for the San Francisco Chronicle, survived the death of Conway, the dealer.

When this action was first commenced, the superior court granted an injunction pendente lite restraining SFNA from terminating the dealership. Earlier this year, the Court of Appeal for the First District ordered the dissolution of the injunction, holding that the agreement is clear and permits neither the inter vivos assignment of the dealership nor its devolution by will or intestacy. (Miller v. San Francisco Newspaper Agency (1985) 164 *441 Cal.App.3d 315 [210 Cal.Rptr. 159].) That decision is final and the law of the case.

While the appeal was pending, the superior court permitted the amendment to the complaint in order to set forth claims that 1) SFNA is attempting to restrain trade in violation of the Cartwright Act by illegally allocating territories and 2) the agreement in question is an unlawful contract of adhesion whose attempted enforcement constitutes an unfair business practice in violation of Business and Professions Code section 17200 et seq. The Court of Appeal in Miller v. San Francisco Newspaper Agency, supra, 164 Cal.App.3d at page 319, took note of the amended complaint but expressly declined to address its allegations.

As soon as the Court of Appeal had denied a rehearing, and even before the remittitur issued, Miller applied to the trial court for a new injunction based on the unfair business practice cause of action. Business and Professions Code section 17203 authorizes such a remedy. In due course, the trial court granted the requested relief, and this petition followed. 1

Miller first questions the propriety of this court’s intervention at this juncture, pointing out correctly that an appeal lies from the grant of a pendente lite injunction. (Code Civ. Proc., § 904.1, subd. (f).) But where the remedy by appeal is not speedy and adequate, then in an otherwise proper case mandate may lie. (Hampton v. Superior Court (1952) 38 Cal.2d 652, 657 [242 P.2d 1].) This case is already over three years old. With that in mind and in the interest of judicial economy, this court may in its discretion grant relief by writ. (Chambers v. Superior Court (1981) 121 Cal.App.3d 893, 897 [175 Cal.Rptr. 575].)

The petition prays for the issuance of a peremptory writ. We have received and considered opposition and have on our own motion scheduled and heard oral argument. The restrictions laid down in Palma v. U. S. Industrial Fasteners, Inc. (1984) 36 Cal.3d 171, 177-182 [203 Cal.Rptr. 626, 681 P.2d 893] have been complied with. We have concluded to issue a peremptory writ in the first instance because the trial court abused its discretion in granting the second injunction.

Preliminarily, and without resting our decision on this ground, we point out that there is no sufficient evidentiary basis for the injunction. The allegations in the amended complaint which support an inference that the *442 contract in question is an adhesive one were all made on information and belief. Such allegations are inadequate, as a matter of law, to establish the facts alleged. (Bank of America v. Williams (1948) 89 Cal.App.2d 21, 29 [200 P.2d 151].) The declaration of Mr. Conway’s widow as to her expectations that the contract was survivable is irrelevant as she is not a party to the agreement. She is not a competent witness as to her late husband’s expectations. If he had in his lifetime expressed his expectations, an auditor could perhaps frame a declaration which would pass muster under Evidence Code section 1251, but no such declaration is on file.

What we do rest our decision on is the principle that an injunction pendente lite must not issue unless it is reasonably probable that the moving party will prevail on the merits (U. C. Nuclear Weapons Labs Conversion Project v. Lawrence Livermore Laboratory (1984) 154 Cal.App.3d 1157, 1160 [201 Cal.Rptr. 837]; Bennett v. Lew (1984) 151 Cal.App.3d 1177, 1183 [199 Cal.Rptr. 241]) and our conviction that Miller cannot meet this standard.

We start with the fact that the heart has been cut out of Miller’s claim: the meaning of the agreement is no longer open to question. For purposes of this lawsuit it has been conclusively established that the business run by the deceased Mr. Conway was not subject to transfer during life or by death. Miller’s argument in opposition to this petition as to the agreement’s ambiguity is totally improper and foreclosed by judgment. The only remaining issue is whether the agreement is enforceable. In what follows, we will assume that the newspaper distribution contract is indeed a contract of adhesion.

But that is just the beginning and not the end of the analysis! (Wheeler v. St. Joseph Hospital (1976) 63 Cal.App.3d 345, 357 [133 Cal.Rptr. 775, 84 A.L.R.3d 343].) As pointed out in the leading case of Graham v. Scissor-Tail, Inc. (1981) 28 Cal.3d 807 [171 Cal.Rptr. 604, 623 P.2d 165], a contract of adhesion is enforceable unless it is unconscionable or does not fall within the reasonable expectations of the weaker or “adhering” party.

There is nothing oppressive about the contract in issue. It does not, for example, compel the dealer to arbitrate disputes before an agent of SFNA acting as umpire. Compare Graham, supra. Indeed, Miller does not point to any provisions which she claims to involve overreaching; she merely asserts that it is unfair to terminate the dealership after her husband had spent 18 years building up the business and made capital investments such as delivery vehicles, etc. A nonassignability clause is of course not inherently suspect, it is routinely enforced. (See cases collected in 1 Witkin, *443 Summary of Cal. Law (8th ed. 1973) Contracts, § 731.) In Weissensee v. Chronicle Publishing Co. (1976) 59 Cal.App.3d 723 [129 Cal.Rptr. 188], a challenge to the nonassignability clause of the very contract here in question was held to be “obviously without merit.” (Id., at p. 727.)

Mrs.

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170 Cal. App. 3d 438, 216 Cal. Rptr. 462, 11 Media L. Rep. (BNA) 2491, 1985 Cal. App. LEXIS 2248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-francisco-newspaper-printing-co-v-superior-court-calctapp-1985.