Wollenberg v. Tonningsen

48 P.2d 738, 8 Cal. App. 2d 722, 1935 Cal. App. LEXIS 728
CourtCalifornia Court of Appeal
DecidedAugust 12, 1935
DocketCiv. 9812
StatusPublished
Cited by18 cases

This text of 48 P.2d 738 (Wollenberg v. Tonningsen) 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
Wollenberg v. Tonningsen, 48 P.2d 738, 8 Cal. App. 2d 722, 1935 Cal. App. LEXIS 728 (Cal. Ct. App. 1935).

Opinions

NOURSE, P. J.

Plaintiff sued for a declaratory judgment “together with such relief as may be requisite or proper”. [724]*724The defendant Tonningsen’s answer admitted the allegations of the complaint and his interests are identical with those of the plaintiff. A demurrer of the Golden Gate Land Association was sustained and the cause was dismissed as to that defendant. The defendant Bone answered and from the judgment adverse to him prosecutes this appeal. After the litigation was started the original plaintiff, Mrs. Leviston, and the defendant John Tonningsen both died and substitutions have been made for them.

In the year 1904 the Golden Gate Land Association was incorporated for the purpose of conducting a cemetery on the outskirts of San Francisco. The incorporators were Maurice Siminoff and Charles L. Patton. Later John Tonningsen came into the corporation and some time prior to the earthquake and fire of 1906 a trust agreement was executed by Siminoff, Patton, Tonningsen, Bone and one E. W. Brown whereby a large part of the stock was to be held by Patton as trustee. In accordance with this agreement a portion of the stock owned by Tonningsen and a portion of that owned by Patton was transferred on the books of the company to the name of Bone and in August, 1921, an agreement was executed by Bone, Tonningsen and Patton whereby they recognized the former trust agreement and stipulated that all the stock standing in the name of Bone should continue to be held by Patton under the former trust agreement as trustee with full power to transfer and sell the same. They also stipulated in this agreement that all of the stock in whosesoever name it stood should belong one-third thereof to each of the following persons : Tonningsen, Patton and Emma Ungar, the successor in interest to Siminoff.

The complaint alleged the execution of this agreement and that prior thereto 72,500 shares of the stock owned by Tonningsen and 59,640 shares belonging to Patton had been put in the name of Bone; that though the agreement of August 22,1921, was not executed by Emma Ungar all her interest in the stock was acquired by Tonningsen by purchase and that he and Patton were the sole beneficiaries under the agreement. It was then alleged that Patton died in 1923 and that plaintiff, as Ms executrix, agreed with Tonningsen, as the sole beneficiaries of the trust, to designate and appoint Tonningsen as trustee thereof. The controversy is alleged to have arisen through the claim of defendant Bone that in the year 1907 the [725]*725stock referred to was placed in his name as the result of a conspiracy between Patton, Tonningsen and Bone whereby-Patton and Tonningsen hoped to escape stockholders’ liability for debts of the corporation and that the defendant Bone, by reason of this intended fraud to which he claims to have been a party, claims that the other conspirators have thereby forfeited to him all their interest in the stock though the said defendant recognized the claims of Patton and Bone and acknowledged the trust relation from the time of the transfer in 1907 until the fourth day of June, 1931. The plaintiff alleged that she disputed and denied all these contentions made by the defendant Bone and asked for a declaration of the rights and duties of the respective parties with respect to the agreement of August 22, 1921, and also “with respect to said shares of the capital stock of said corporation, together with such relief as may be requisite or proper”.

The trial court found in accordance with all the allegations of the complaint and in addition thereto found that it was untrue that the stock was transferred to Bone in fraud to escape stockholders’ liability or otherwise; that such transfer did not enable any of the parties to escape stockholders’ liability and no claim was ever made against the stockholders based upon such liability and that no creditor of the corporation was ever defrauded or injured by such transfer. The court further found that the defendant Bone had no right, title or interest or any claim upon the stock in litigation and expressly ratified and confirmed the appointment of Tonningsen as substituted trustee.

Appellant first argues that the complaint fails to state a cause of action because the writing of August 22, 1921, was not a valid contract and because there was no controversy under this writing. The point is that since the writing was not signed by all the parties to be bound by it no valid contract was made and that in the absence of a valid contract no real controversy could arise to give the court jurisdiction to grant declaratory relief. The point would have presented a question of debatable interest if the appellant had stood upon his demurrer, but having answered and gone to trial and the evidence having disclosed the manifest equities incorporated in the judgment the question of the sufficiency of the complaint becomes academic. This is particularly so in view of the rule stated in Zellner v. Wassman, 184 Cal. 80, [726]*72688 [193 Pac. 84], that: “It is not essential that a complaint state a cause of action for the relief which plaintiff seeks, provided the facts stated show some right of recovery, and a party cannot be thrown out of court merely because he may have misconceived the form of relief to which he is entitled." (Brown v. Anderson-Cottonwood Irr. Dist., 183 Cal. 186, 188 [190 Pac. 797]; Martin v. Hall, 219 Cal. 334, 339 [26 Pac. (2d) 288].)

Appellant assumes that the jurisdiction to entertain a proceeding for declaratory relief depends upon the existence of a controversy with respect to some written instrument. Provision for such proceeding is found in sections 1060 to 1062a of the Code of Civil Procedure. Section 1060 reads: “Any person interested under a deed, will or other written instrument, or under a contract, or who desires a declaration of his rights or duties with respect to another, or in respect to, in, over or upon property, . . . may, in cases of actual controversy relating to the legal rights . . . bring an action in the superior court for a declaration of his rights and duties in the premises. ...” The use of the word “or” following the word “contract” definitely expressed the purpose to authorize such an action by one who desires a declaration of his rights or duties with respect to another or in respect to property. Hence, though the plaintiff pleaded the agreement of 1921 and asked for a declaration of her rights in respect to it, she also pleaded the facts which disclosed a controversy over the rights and duties of the parties with respect to the stock of the corporation. It cannot be said that the complaint failed to plead a controversy when it alleged facts showing that some of the parties claim title to the property under either an oral or written trust and the other claims under a fraudulent transfer. Hence we may assume that the writing did not become a binding contract and also that the plaintiff has not pleaded a controversy based upon a written instrument, but nevertheless, having pleaded facts which would entitle her to equitable relief, the complaint stated a cause of action and fully supports the decree entered.

The third point raised by the appellant is that the action for declaratory relief will not lie when there is an available remedy in an ordinary action at law or in equity. The answer is that the code does not so limit that right of action. Appellant cites Stenzel v. Kronick, 102 Cal. App. 507 [727]*727[283 Pac. 93], and Hamburger & Sons v. Kice, 129 Cal. App. 68 [18 Pac.

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

Related

Tashakori v. Lakis
196 Cal. App. 4th 1003 (California Court of Appeal, 2011)
Travers v. Louden
254 Cal. App. 2d 926 (California Court of Appeal, 1967)
Gardiner v. Gaither
329 P.2d 22 (California Court of Appeal, 1958)
Southern Traffic Bureau v. Thompson
232 S.W.2d 742 (Court of Appeals of Texas, 1950)
Luckhardt v. Mooradian
207 P.2d 579 (California Court of Appeal, 1949)
California Physicians' Service v. Garrison
172 P.2d 4 (California Supreme Court, 1946)
Hansen v. Bear Film Co.
168 P.2d 946 (California Supreme Court, 1946)
Temm v. Temm
191 S.W.2d 629 (Supreme Court of Missouri, 1945)
Columbia Pictures Corp. v. DeToth
161 P.2d 217 (California Supreme Court, 1945)
Ermolieff v. R. K. O. Radio Pictures, Inc.
122 P.2d 3 (California Supreme Court, 1942)
Gunn v. Giraudo
120 P.2d 177 (California Court of Appeal, 1941)
Zimmer v. Gorelnik
109 P.2d 34 (California Court of Appeal, 1941)
Eiffel Realty & Investment Co. v. Ohio Citizens Trust Co.
8 N.E.2d 470 (Ohio Court of Appeals, 1937)
Wollenberg v. Tonningsen
48 P.2d 738 (California Court of Appeal, 1935)

Cite This Page — Counsel Stack

Bluebook (online)
48 P.2d 738, 8 Cal. App. 2d 722, 1935 Cal. App. LEXIS 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wollenberg-v-tonningsen-calctapp-1935.