Harrison v. Superior Court

NOURSE, P. J.

This is an original proceeding in

mandamus

to require the respondent court to assume jurisdiction of and to set for trial a cause of action for. damages for fraud and deceit.

The petitioner herein, as plaintiff below, commenced an action in the superior court for $6,000 damages alleged

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to have been suffered through the purchase of corporate stock. The defendants Abry, Kebler & Company and their agent Krause were stockbrokers who conducted the sale. The indemnity company was sued as surety on the brokers’ bond. Upon their motions the respondent court transferred the cause to the municipal court upon the ground that the action involved a demand less than $2,000. The complaint alleged that the plaintiff had paid $600 for 6,000 shares of stock upon the false representations of the brokers “based upon certain confidential inside information exclusively had and obtained by said defendant, that said stock would be selling in the open market and upon the San Francisco Stock Exchange or the Curb Exchange at San Francisco, at a price of One Dollar, or more, per share; that the par value of said stock was to be increased, due solely to certain confidential inside information obtained and had exclusively by said defendant Abry, Kelber & Company; furthermore, that as soon as the aforesaid stock was listed on the aforesaid exchanges or exchange, that the said stock would, with certainty, sell in the open market and have a definite and certain value to plaintiff herein of at least One Dollar or more per share”. It was then alleged that, by reason of these representations, the plaintiff had been damaged in the sum of $6,000, for which sum judgment was prayed.

The jurisdiction of the municipal courts is limited to cases at law “in which the demand, exclusive of interest . . . amounts to two thousand dollars or less”. (Sec. 89a, Code Civ. Proc.) The plaintiff justifies the demand for $6,000 on the theory that the measure of such damages is the difference between the actual value of the stock purchased and the value it would have had if the representations had been true.

(Spreckels