Shida v. Japan Food Corp.

185 Cal. App. 2d 443, 8 Cal. Rptr. 271, 1960 Cal. App. LEXIS 1523
CourtCalifornia Court of Appeal
DecidedOctober 18, 1960
DocketCiv. 24395
StatusPublished
Cited by11 cases

This text of 185 Cal. App. 2d 443 (Shida v. Japan Food Corp.) 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
Shida v. Japan Food Corp., 185 Cal. App. 2d 443, 8 Cal. Rptr. 271, 1960 Cal. App. LEXIS 1523 (Cal. Ct. App. 1960).

Opinion

VALLÉE, J.

Appeal from an order changing the place of trial from the county of Los Angeles to the city and county of San Francisco.

The defendants are Japan Food Corporation, a California corporation, with its principal place of business in the city and county of San Francisco; Waimanalo Ko-Ko Company, a partnership, the partners being Richard K. Kiyota, James M. Kiyota, David M. Kiyota, and Kiyono Kiyota; Richard Kiyota; and H. Kiyota. The partners and the individual defendants are all residents of the State of Hawaii. The order was made on motion of Japan Food Corporation, which was the only defendant that had appeared in the action.

The verified complaint is in two counts. The first count, in substance, alleges: Plaintiff is an individual doing business under a fictitious firm name; Waimanalo Ko-Ko Company is a Hawaiian corporation or partnership (we shall refer to it as the partnership); the partnership and the two individual defendants agreed if plaintiff would at his own expense and effort create a market for their products, they would from year to year grant to him the exclusive right to distribute their products in the United States; shortly thereafter, on February 11, 1952, they executed and delivered to plaintiff an agreement giving him. the exclusive right from 1952 to *445 1955, copy of which is incorporated in the complaint as an exhibit and set out in the footnote; 1 written extensions were executed and delivered to plaintiff for each subsequent year from 1953 through January 28, 1959, in consideration of the exclusive right of distribution “on the mainland and particularly in California”; plaintiff ordered and undertook to distribute and make known all the products, previously unknown on the mainland, particularly the pickled products, and did order and distribute increasing quantities up to and including January 28, 1959 ; 2 for some time prior to that date and thereafter plaintiff had not received the products in the quantities ordered, did not receive a renewal of the annual agreement after repeated inquiries, and was notified about February 11, 1959, in writing the contract would not be renewed. It is alleged this communication was a breach of local usage and custom incident to the “Law Merchant.”

The first count also alleges: Plaintiff’s orders had not been filled due to the fact, unknown to plaintiff, that the corporate defendant had solicited the partnership to breach the contract which he could reasonably expect and rely on being renewed by usage and custom; the partnership failed and refused to perform solely and proximately by reason of the interference *446 of the corporate defendant, which culminated in the abandonment of the contract by the partnership, although it would otherwise have been performed by it; unless the corporate defendant is enjoined from receiving the products, plaintiff’s business, good will and trade name will be irreparably injured; the amount of damage is difficult to ascertain and plaintiff cannot be adequately compensated by a monetary judgment since other products sold by plaintiff for many past years will be adversely affected.

The second count incorporates the allegations of the first count through the alleged breach. It then alleges a controversy between plaintiff and defendants in respect to the contractual rights and duties, particularly in respect to the obligation of the noncorporate defendants under the “Law Merchant.” It also appears to allege a controversy between the corporate defendant and the other defendants in respect to the rights of plaintiff.

Plaintiff prays judgment against defendants and each of them, declaring he is entitled to the exclusive right to sell the products on the mainland for the usual period conforming with local customs, usage, and the “Law Merchant,” $6,000 damages and $500 each month the products are diverted to the corporate defendant or until they are properly channeled to plaintiff.

In support of the motion the corporate defendant filed a declaration of its executive vice-president and general manager that its principal place of business is in the city and county of San Francisco, an affidavit of the managing partner of Waimanalo Ko-Ko Company, and a declaration of merits, the sufficiency of which is not in question.

The affidavit of the managing partner of Waimanalo Ko-Ko Company states: Waimanalo Company is a partnership composed of individuals residing in Hawaii; the partnership has never maintained an office, telephone listing or sales agents, employees or representatives in California at any time; the other defendants are individuals residing in Hawaii.

The affidavit further states: 1. The contract, or contracts, and all other agreements made between the partnership or any of its individual partners and plaintiff were in fact entered into, consummated, concluded and to be performed in Hawaii, in that (a) the original agreement was signed, dated and posted by affiant at Waimanalo, Island of Oahu, state of Hawaii; (b) each successive yearly extension consisted of letters signed by affiant on behalf of the partnership, dated *447 and posted in Hawaii; (c) all sales to plaintiff were in fact, by custom and agreement, made f.o.b. Hilo, Hawaii, and title passed to plaintiff on delivery at dockside there; (d) all payments became due and payable at the partnership’s principal place of business at Waimanalo, or at Hilo; (e) all purchase orders placed by plaintiff for Ko-Ko brand pickles were subject to acceptance by the partnership at Waimanalo, or at Hilo. 2. Any contracts and all other agreements made between the corporate defendant and the partnership or any individual partner on the obligations of which this action is founded were in fact entered into, consummated, and concluded within the state of Hawaii.

We are concerned only with the rights of the corporate defendant. They are governed by the self-executing provisions of section 16 of article XII of the California Constitution (Hale v. Bohannon, 38 Cal.2d 458, 470 [241 P.2d 4]; Blumer v. Kirkman Corp., 38 Cal.2d 480, 485 [241 P.2d 17]), which states:

“A corporation or association may be sued in the county where the contract is made or is to be performed, or where the obligation or liability arises, or the breach occurs; or in the county where the principal place of business of such corporation is situated . . . .”

Section 16, article XII, is permissive; it does not prevent a plaintiff from suing or proceeding to trial in any county in the state. (Rutherford v. New York Hanseatic Corp., 153 Cal.App.2d 462, 464 [314 P.2d 560].) His choice is regarded as presumptively correct. (J. C. Millett Co. v. Latchford-Marble Glass Co., 144 Cal.App.2d 838, 839 [301 P.2d 914

Free access — add to your briefcase to read the full text and ask questions with AI

Related

BLACK DIAMOND ASPHALT, INC. v. Superior Court
134 Cal. Rptr. 2d 510 (California Court of Appeal, 2003)
Cacciaguidi v. Superior Court
226 Cal. App. 3d 181 (California Court of Appeal, 1990)
Mission Imports, Inc. v. Superior Court
647 P.2d 1075 (California Supreme Court, 1982)
Jhirmack Enterprises, Inc. v. Superior Court
96 Cal. App. 3d 715 (California Court of Appeal, 1979)
Sea World, Inc. v. Superior Court
13 Cal. App. 3d 100 (California Court of Appeal, 1970)
Easton v. Superior Court
12 Cal. App. 3d 243 (California Court of Appeal, 1970)
Gutierrez v. Superior Court
243 Cal. App. 2d 710 (California Court of Appeal, 1966)
Pacific Air Lines, Inc. v. Superior Court
231 Cal. App. 2d 587 (California Court of Appeal, 1965)
Marin v. Jacuzzi
224 Cal. App. 2d 549 (California Court of Appeal, 1964)
Smith v. Stanford Research Institute
212 Cal. App. 2d 750 (California Court of Appeal, 1963)
Pascoe Steel Corp. v. Pozun Bros., Inc.
205 Cal. App. 2d 762 (California Court of Appeal, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
185 Cal. App. 2d 443, 8 Cal. Rptr. 271, 1960 Cal. App. LEXIS 1523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shida-v-japan-food-corp-calctapp-1960.