Noroian v. Bennett

SHAW, J.

The defendants appeal from the judgment.

The sole question presented for our consideration is whether or not the complaint states facts sufficient to constitute a cause of action in favor of the plaintiffs against the defendants.

[807]

The facts alleged may be briefly stated. The plaintiffs were engaged in farming in the vicinity of Reedley, each conducting a separate farm on his own account. Each had been accustomed to purchase the supplies necessary for his farming operations from merchants in Reedley, and the business of each required that he should obtain these supplies on credit until he should realize money from his crops with which to pay for them. A corporation known as the California Rochdale Company, being about to purchase the business of the persons from whom plaintiffs had theretofore purchased their supplies on credit, at different times solicited the trade of each of the plaintiffs, represented to each of them that it was about to purchase the business of said other persons and intended to establish a large general merchandise store in Reedley, and “promised to each of the plaintiffs that if he would become a stockholder to the extent of one share in said Rochdale Com-' pany and would execute a promissory note in the sum of $90, payable to said Rochdale Company, and would transfer his purchasing to said Rochdale Company, he would get at least as much and as long credit as he had been receiving theretofore from any person from whom he had been purchasing his supplies.” Relying upon these representations, and in consideration of the said promise made to each of them by said company that it would extend credit as aforesaid to each of them, each of the plaintiffs, respectively, in the months of March and April, 1913, executed to the company a promissory note for $90. The shares of stock in said company were not, and never have been, of any value whatever “to any of the parties to this action.” All of these notes were executed in the county of Fresno. Some of them specified that they should be paid in the county of Fresno and others specified no place of payment. Each plaintiff thereupon transferred his custom to the Rochdale Company, said company gave each plaintiff credit- up to and until June 1, 1913, but no longer, and thereafter refused any credit -whatsoever to any of the plaintiffs and required each to pay cash for any purchase made by him. At maturity of the notes the company transferred the same to the defendants, who have begun separate actions thereon against eleven of the plaintiffs and are about to commence such actions against the other plaintiffs, respectively, .in the justice’s court of the city and county of San Francisco. In each action a writ of attachment was issued and