Construction Products Corp. v. Superior Court

MOORE, P. J.

The question presenfed for decision is whether the court below has exceeded its jurisdiction in issuing an order pursuant to section 1000 of the Code of Civil Procedure compelling petitioners to make available to respondents for inspection “all . . . books, accounts, docu

[404]

ments and papers now in the possession and/or under the control of defendants ... in connection with . . , and relating to the business, operations and financial condition of defendant, Construction Products Corporation ...”

Such order was granted on the motion of Mr. and Mrs. Moore, respondents here and plaintiffs below, in connection with their action instituted against the corporation and its president, Prank W. Wells, demanding damages for fraud, enforcement of certain contracts and recovery of various sums of money on counts for moneys had and received. The complaint in that action reveals that the allegations of fraud are predicated upon alleged misrepresentations as to the business and financial condition of the corporation prior to plaintiffs’ advancing $60,000 to the firm, manipulation of the corporate books and records and commingling of plaintiffs’ funds held in trust by defendants.

Petitioners urge in their petition for a writ of review that this court annul the order in question on the ground that it is in excess of the trial court’s jurisdiction. Basing their contention on the decision in

Shell Oil Co.

v.

Superior Court,

109 Cal.App. 75 [292 P. 531], they assert that the order is void in that it fails to designate the precise documents which are to be made available for inspection; that the respondents have not shown that any such books and papers contain evidence material to the issues awaiting trial; that in short, such plaintiffs are merely seeking to enter upon a “fishing expedition.”

In determining the propriety of an order under section 1000, Code of Civil Procedure, it must be borne in mind that the trial court’s action thereunder is discretionary and that all intendments are in favor of the validity of such order. Accordingly, such action will not be annulled unless a clear abuse of that discretion appears.