Tyler v. Park Ridge Country Club

BARNARD, J.

This action was brought by certain parties holding memberships in a golf club in Riverside County, conducted by Park Ridge Country Club, a corporation, the action being brought on behalf of and for the benefit of all those holding such memberships. The action seeks the appointment of a receiver to take charge of and manage the property of the corporation, and to restrain certain defendants who are alleged to own the stock of the corporation from transferring or selling said stock to any person other than one of the Caucasian race. The complaint alleges that the by-laws of said club limit the members thereof to persons of the Caucasian race; that those holding memberships therein are not entitled to voting power in the conduct of the club or in the corporation, nor in amending or changing the by-laws; that according to the articles of incorporation and the by-laws, the directors of the club and the owners of the corporate stock have the sole right to amend the by-laws and to provide rules and regulations for the conduct of the club and the members, including the right to change the by-laws in such a manner as to provide that memberships in said club shall not be limited to members of the Caucasian race; and further that the board of directors have full power to elect or reject candidates for membership. It is then alleged that the plaintiffs were induced to purchase memberships upon the representation that the members would be limited to persons of the Caucasian race; and that for the purpose of defrauding the plaintiffs, the directors of said club have pretended and represented that the club is insolvent. Upon information and belief, it is alleged that certain of the defendants are the owners of all of the stock of said corporation, and that these defendants have entered into an agreement to sell all of said stock to certain members of the negro race; that if not restrained, said defendants will transfer said stock to such

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other persons; that the by-laws will be so amended as to permit members of the negro race to become members of the club; and that these plaintiffs will thereby suffer great and irreparable damage. Plaintiffs pray that a receiver be appointed, and that the defendants be enjoined from transferring the stock of said corporation to any person other than a person of the Caucasian race. The action was filed in the county of Riverside, and the defendants moved for a change of venue to the county of Los Angeles, upon the ground that all of the defendants are residents of. that county. From an order denying this motion, this appeal is taken.