Glockner v. Palace Amusement Co.

SHAW, J.

Action to recover certain unpaid monthly installments of money alleged to he due under a contract for the purchase by defendant from plaintiff of a motion picture orchestra.

Judgment went for defendant, from which plaintiff appeals.

For defense to the action defendant relied upon certain alleged fraudulent acts practiced by plaintiff, whereby defendant was induced, to enter into the contract, as to all of which the court found in defendant’s favor.

[1]

It appears that prior to the institution of the action there had been another action between the same parties and

[598]

upon the same contract to recover monthly installments of money theretofore accruing thereon and which defendant had failed to pay. In this first action the defendant, as here, pleaded in defense of recovery therein the same fraudulent acts of plaintiff which it sets up in its answer in the instant case, and, as shown hy the judgment-roll in said first action, introduced in evidence, the court, as to such defense, found adversely to defendant and gave judgment tor pláintiff, which judgment had, at the time of filing the complaint herein, become final. Hence, the court having in the trial of tha first case adjudged as unavailing the defense of fraud therein pleaded, defendant must, in the second suit, upon the principle of estoppel, be deemed concluded thereby. While the subject of the action in this case was different installments from those involved in the former action, the defense to recovery thereof was the same in both; hence, as said in

Koehler

v.

Holt Mfg. Co.,

146 Cal. 335, [80 Pac. 73]: “The case comes clearly within the principle that a judgment operates as -an estoppel to preclude the parties and privies from contending to the contrary of that point or matter of fact, which, having been once distinctly put in issue by them, has been, on such issue joined, solemnly found against them.” Indeed, we know of no authority holding to the contrary, while the proposition is, among other cases, supported by