Steele v. Litton Industries, Inc.

260 Cal. App. 2d 157, 68 Cal. Rptr. 680, 1968 Cal. App. LEXIS 1837
CourtCalifornia Court of Appeal
DecidedMarch 18, 1968
DocketCiv. 30391
StatusPublished
Cited by6 cases

This text of 260 Cal. App. 2d 157 (Steele v. Litton Industries, Inc.) 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
Steele v. Litton Industries, Inc., 260 Cal. App. 2d 157, 68 Cal. Rptr. 680, 1968 Cal. App. LEXIS 1837 (Cal. Ct. App. 1968).

Opinion

FRAMPTON, J.

pro tem. * —The defendants Litton Industries, Inc., Charles B. Thornton, Roy L. Ash, Hugh W. Jamie-son and Electro Dynamics Stock Trust Fund, a partnership, have appealed from the judgment and, by means of a second notice of appeal, from the order denying their respective motions for judgment notwithstanding the verdict.

It was alleged in each of the first six counts of the complaint of the plaintiff Steele that the defendants Thornton, Ash and Jamieson were copartners, doing business under the name of Electro Dynamics Stock Trust Fund and that Thornton was the agent of each of the other defendants. Those counts related to an agreement that was alleged to have been made by Thornton and the plaintiff Steele in 1958 pursuant to which Steele was to be permitted to purchase shares of Litton Industries stock equal in amount to the shares received by the defendants Ash and Jamieson. The first three counts were directed against all of the defendants and the fourth, fifth and sixth counts against all of the defendants except Litton Industries, Inc. The first count was for damages for fraud arising from the making of a promise to the plaintiff without intent to perform it; the second count was for damages for breach of contract; the third count was for specific performance ; the fourth and fifth counts were for relief by means of *160 the imposition of a constructive trust, and the sixth count was for the enforcement of an express trust.

The seventh, eighth and ninth counts related to a promise alleged to have been made in 1953 by Thornton to the plaintiff Steele that he would be permitted to purchase shares of Litton Industries stock in an amount equal to the number of shares transferred to Ash and Jamieson or either of them. In the seventh count, directed against the defendants Thornton, Ash and Jamieson, a conspiracy to defraud Steele was alleged and damages for fraud were sought. The eighth and ninth counts were directed against all of the defendants other than Litton Industries, Inc., and the relief sought was the imposition of a constructive trust.

The tenth count was for declaratory relief.

At the trial the counts for fraud (count seven, relating to the alleged 1953 promise, and count one, relating to the alleged 1958 agreement) and the count for damages for breach of the alleged 1958 agreement (count two) were submitted to the jury. The other counts, being equitable in nature, were submitted to the trial judge. On April 19, 1965, the jury returned a verdict in favor of the plaintiff as against all of the defendants in the sum of $5,182,885, 1 together with interest thereon. In response to special interrogatories the jury stated that its verdict was based upon the first and second counts which related to the alleged 1958 agreement and not upon the seventh count which related to the alleged 1953 promise. On the day of the verdict the trial judge filed his “Decision” in which he stated his opinion that the plaintiff was not entitled to the equitable relief sought under the remaining counts, other than that relating to declaratory relief, and that it was not necessary to specifically grant declaratory relief inasmuch as the determination of the other causes of action would “completely adjudicate the rights, duties and obligations of the parties hereto.” As will be explained, the trial judge did not thereafter sign and file findings of fact and conclusions of law and render judgment with respect to the equitable counts.

On April 30, 1965, the plaintiff Steele filed a document, the body of which was as follows: “Plaintiff hereby elects of alternative remedies sought by his Complaint his claim for *161 damages at law as set forth in the First and Second Causes of action, and plaintiff hereby elects to waive his claim for equitable relief as set forth in the Third, Fourth, Fifth, Sixth, Eighth and Ninth Causes of Action, and his claim for declaratory relief as set forth in his Tenth Cause of Action.” 2 On May 3, 1965, the plaintiff filed another document in which he reiterated the “election” so expressed and stated that he dismissed “with prejudice his alternative claim for equitable relief as stated in the Third, Fourth, Fifth, Sixth, Eighth and Ninth counts and his request for declaratory relief as set forth in his Tenth count of his Complaint.” The plaintiff Steele further stated therein that the “Election, Waiver, and Dismissal is not intended to, and does not dismiss plaintiff’s claim for damages at law as set forth in the First and Second counts of his Complaint. ’ ’ On the same date the plaintiff filed a written request, addressed to the clerk, to enter his “election óf remedies by dismissal with prejudice of alternative claim for equitable relief. ’ ’ On May 4, 1965, the plaintiff filed a further request, addressed to the clerk, to enter a dismissal with prejudice of third, fourth, fifth, sixth, eight, ninth and tenth counts of the complaint, stating that said request did not affect the first and second counts. On the same date the clerk signed a statement attached to the request which was as follows: “Dismissal entered this 4 day of May, 1965. ”

On May 7, 1965, the defendants filed a notice of motion for an order vacating and setting aside the plaintiff’s request to the clerk, filed on May 4, 1965, for entry of a dismissal of the alternative counts for equitable relief, separate ground for such motion being stated as follows: “1. That the purported dismissal entered was not a dismissal with prejudice of any cause or causes of action; 2. That the purported dismissal entered was not timely under C.C.P. § 581.5; 3. That the purported dismissal entered was and is ineffective under Code Civ. Proc., § 581.5 since it does not dismiss any cause of action but only alternative counts or claims for relief.” It was further stated that in the event that it should be determined that the purported dismissal which had been entered was timely and proper, the defendants would move in the alternative for an order adjudging that such dismissal constituted a dismissal with prejudice of the plaintiff’s entire action “and *162 each of the two causes of action and all counts thereof set forth in his complaint ... on the ground that the legal effect of such purported dismissal is a dismissal with prejudice of plaintiff’s entire action.” The motion to vacate the dismissal and the alternative motion for an adjudication that there had been a plenary dismissal with prejudice of the plaintiff’s action were denied on May 14,1965.

The judgment based on the verdict of the jury was entered on July 9, 1965. The defendants’ motion for a new trial was directed to the issues raised by the first and second counts. That motion was granted on August 25,1965.

The plaintiff did not appeal from the order granting a new trial and that order became final. The defendants state in their opening brief that they appealed from the judgment “to be certain to preserve for review the question as to the effect of the dismissal of the equity counts with prejudice.” One effect of an order granting a new trial, however, is to vacate the judgment. 3 (Spencer v. Nelson,

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Bluebook (online)
260 Cal. App. 2d 157, 68 Cal. Rptr. 680, 1968 Cal. App. LEXIS 1837, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steele-v-litton-industries-inc-calctapp-1968.