Wahyou v. Ostrovsky

267 P.2d 387, 123 Cal. App. 2d 722, 1954 Cal. App. LEXIS 1246
CourtCalifornia Court of Appeal
DecidedMarch 8, 1954
DocketCiv. No. 8415
StatusPublished

This text of 267 P.2d 387 (Wahyou v. Ostrovsky) 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
Wahyou v. Ostrovsky, 267 P.2d 387, 123 Cal. App. 2d 722, 1954 Cal. App. LEXIS 1246 (Cal. Ct. App. 1954).

Opinion

SCHOTTKY, J.

This is an.appeal from a money judgment for the purchase price of certain meat and meat products which the trial court found were purchased by defendant from plaintiffs.

The complaint was filed in San Joaquin County and the action was transferred to Solano County. The complaint contains three counts, i.e., a common count for goods sold and delivered, an open book account, and an account stated. Each count alleges that at all times mentioned therein appellant was doing business under the fictitious firm name and style of “Quality Meat Market.” Appellant did not deny this allegation. Following a trial by the court, sitting without a jury, the court found in accordance with the allegations of [723]*723the complaint, and judgment for respondents was entered accordingly.

Appellant bases his argument for a reversal of the judgment upon three grounds: First, that there is nothing in the record to indicate that the account sued on was incurred by him, his employees or agents; second, that the record shows that prior to delivery of the merchandise in question respondents “were in receipt of” actual knowledge that it was not being purchased by appellant, his employees or agents; and third, that the trial court erred in holding that actual knowledge of a change of ownership of the meat market, imparted to respondents’ agent prior to the time when the obligation sued upon was incurred, was not binding on respondents.

Before discussing these contentions we shall give a brief summary of the evidence as shown by the record.

Respondents are partners doing business as the Daylite Market. They are engaged in the wholesale distribution of meats and their main office is located in Stockton, California. Appellant operates a retail grocery business under the name of Quality Market, in Vallejo, California. A retail meat department or market, known as the Quality Meat Market, was operated in conjunction with appellant’s business and one of the chief questions involved in this appeal is whether or not this retail meat operation was being conducted by or for appellant during the time when the purchases in question were made from respondents. The record shows that appellant was operating the meat market in June, 1949, when the first purchases were made from respondents. At that time James Sale was employed by appellant to manage the meat market. Thereafter, respondents continued to sell and deliver meat to the market until July, 1951, at which time a balance of $1,418.68 was owing and unpaid to respondents.

There is testimony showing that on October 31, 1949, appellant leased the meat market business to Sale and Vernon Bleamel who thereafter conducted it as a partnership venture until April 5, 1951, when Bleamel withdrew from the partnership, leaving Sale as the sole owner of the business. Sale continued on in the meat market until late in July, 1951, when he closed, apparently because of his inability to redeem certain checks which he had given to respondents over a 45-day period and which the drawee bank refused to honor for lack of funds. Appellant and Sale and Bleamel each testified to the lease [724]*724and the taMng over of appellant’s meat market business, although Sale was not certain whether this was done in 1949 or 1950. There was no written lease, but appellant and Bleamel testified that the rental was $100 per month, and the latter also testified that he and Sale took possession on October 31, 1949. Although Sale and Bleamel did not have a written agreement' covering their partnership, their operation of the Quality Meat Market as a partnership venture is corroborated by the notice of dissolution of partnership which they had published in a Vallejo newspaper on April 6, 1951, and which was later filed in the office of the county clerk. Sale admitted that he owed the unpaid balance of $1,418.68, stating that it was incurred during his operation of the meat market after dissolution of the partnership.

There is no direct testimony refuting the claimed change in ownership and operation of the meat market business, but there is evidence which will support inferences to the contrary. The record shows, in this regard, that the business was continued under the same name as before; that the business license, apparently issued by the city of Vallejo, was retained and renewed in appellant’s name; none of the signs in the market was changed; no notice of intended transfer was published or recorded; and Sale, who had managed the operation for appellant, continued on in the meat market. No written notice of the change in ownership was sent to respondents, although the testimony of appellant and Sale and Bleamel is. to the effect that respondents’ salesman, Jack Peters, was told of the change in ownership and operation when he was at the market on October 31, 1949 (the day when the change allegedly took place), and Sale then placed an order with him. It appears that Sale had not done the ordering prior to this time, but he placed all of the orders thereafter. The orders were given to respondents’ salesman, and the checks in payment were given either to the salesman or to respondents’ driver. In evidence are the customer’s copy of the invoice for Sale’s first order, and the cancelled check given in payment. The invoice shows that the order was billed to “Quality Market,” and the cheek was signed “Quality Meat Market, Vernon Bleamel.” There is no showing that Peters, the salesman, ever told his principals of the change in ownership. The account was carried under the name of Quality Meat Market, on respondents’ books. No change in ownership is indicated on the ledger sheets, although respondents’ credit manager testified that a new ledger sheet [725]*725would have been set up for the account if notice of the change had been received at the home office. Apparently Peters left respondents’ employ during the early part of 1950; he did not appear at the trial.

Leon Rahe was the salesman to whom Sale gave the worthless cheeks. He admitted that he did not take the matter of payment up with appellant personally, but explained that appellant was in the hospital at the time. Rahe apparently took over the Vallejo territory, as salesman for respondents, on May 15, 1951. There is a conflict in the evidence as to what was said regarding ownership of the meat market when Rahe and Sale first met. Sale testified that Peters brought Rahe to the meat market and introduced Sale as the owner. Rahe testified that he went alone, introduced himself, and nothing was said regarding the ownership. This was more than a year after Peters left respondents’ employ.

As to appellant’s contention that there is no evidence in the record to support a finding that the account sued on was incurred by appellant or his employees or agents, it is to be noted that the complaint alleges that at all times mentioned therein appellant was doing business under the fictitious firm name of “Quality Meat Market.” Appellant did not deny this in his answer, so the allegation must be taken as true. (Code Civ. Proe., §462.) No evidence was required to prove this fact, and no finding thereon was necessary (City of Los Angeles v. City of Huntington Park, 32 Cal.App.2d 253, 265 [89 P.2d 702]; Welch v. Alcott, 185 Cal. 731, 754 [198 P.

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Bluebook (online)
267 P.2d 387, 123 Cal. App. 2d 722, 1954 Cal. App. LEXIS 1246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wahyou-v-ostrovsky-calctapp-1954.