McSherry v. Pennsylvania Consolidated Gold Mining Co.
Before: Fitzgerald
Synopsis
Change of Place of Trial — Motion upon Filing of Demurrer—. Counter-motion — Convenience of Witnesses — Impartial Trial. —Where a motion for a change of the place of trial is made upon the filing of a demurrer to the complaint without filing an answer, the plaintiff cannot, by cross-motion, demand the retention of the action in the county where it is pending on the ground of convenience of witnesses, and that an impartial trial cannot be had in the county to which the action is sought to be transferred.
Id.—Demand — Joinder of Defendants.—It is not necessary that all the defendants in an action should join in a demand for a change of venue.
Id. —Affidavit of Merits by One Defendant for All. —An affidavit of merits, used at the hearing of a motion for a change of'venue, in behalf of each and all the defendants, made by one of the defendants therein, which recites that the affiant makes it for each and all of the defendants and at their request, and that the affiant and the other defendants have fully and fairly stated the. facts of the case to their attorneys, who, • upon such statement, advised each and all of them that they had a good and substantial defense upon the merits of the action, which each and all of them believed to be true, is in all respects sufficient, and is not objectionable because made by one of the defendants only.
Id. — Residence of Corporation — Principal Place of Business. — The place of residence of a corporation is in the county where its principal place of business is situated, and that is the proper county, within the meaning of section 395 of the Civil Code, where an action against the corporation for an accounting, and a recovery of shares of its capital stock, alleged to have been illegally sold for delinquent assessments, must be tried, subject, however, to the other grounds of this and the following section, and the provisions of section 16 of article XII. of the constitution, and to the power of the court to change the place of trial as provided in the code.
Id. — Proof of Place of Business — Affidavit of Merits — Sham Allegation of Complaint — Information and Belief — Conflict of Evidence.— An allegation, in a complaint against a corporation, by one who has been general manager, director, and owner of a majority of its capital stock, that “plaintiff is informed and believes ” that the defendant corporation has its principal office in the county in which the action is brought, will be disregarded, as a sham allegation, upon a motion to change the place of trial upon the ground that the action was brought in the wrong county, where the affidavit of merits by the president of the corporation, upon which the motion is based, shows that at the time of the commencement of the action, and afterwards, the principal and’ only place of business of the corporation was in the county to which the action is sought to be removed, and no notice of such statement is taken by the plaintiff in his opposing affidavit, and such sham allegation of the complaint does not raise a conflict of evidence upon the question as to the place of residence.
Fitzgerald, J. The record in this case contains two appeals, — one from an order denying defendants’ motion for a change of place of trial, the other from an order denying defendants’ motion to dissolve an injunction. The action was for an accounting, and for the recovery of certain shares of the capital stock of the defendant corporation, alleged to have been illegally sold for delinquent assessments to the said corporation, who thereafter declared a stock dividend and distributed thirty per cent of plaintiff’s stock to its stockholders, the individual defendants herein, who, it is alleged, fraudulently conspired together, and in pursuance of such conspiracy did fraudulently deprive plaintiff of his stock so sold and distributed as aforesaid. Plaintiff also obtained an order restraining and enjoining all of the defendants from disposing of any of said stock, and from levying any further assessments upon the outstanding capital stock of the defendant corporation, until the termination of this action.
The application for a change of place of trial was made by each and all of the defendants at the time of filing their demurrer, and before answering, on the ground “ that the county designated in the complaint, viz., the city and county of San Francisco, is not the proper county.” The affidavit upon which the application was
[641]based shows that at the time of the commencement of the action, and afterwards, the principal and only placo of business of the defendant corporation, and the place of residence of each of the other defendants, was in Nevada County, except the defendant Bhodes, 'whose place of residence was in Sacramento County. The application was resisted by opposing affidavits, on the grounds,. — 1. That an impartial trial of the case could not be-had in Nevada County; 2. That the convenience of witnesses and the ends of justice would be promoted by the retention of the case; 3. That the defendant Bhodes did not join in the' application, for the reason that he was never served with process, and never appeared, or authorized any one to appear for or represent him in this action; 4. Insufficiency of the affidavit of merits; and 5. That the complaint, which is verified, shows that the principal place of business of the corporate defendant is in the city and county of San Francisco..
The first and second grounds of objection are disposed of by the case of Cook v. Pendergast, 61 Cal. 12, in-which it was held that, “ independent of an express provision of statute, the superior court ought not to-be called on before issues of fact have been joined to decide- that the convenience of witnesses will be promoted by- a change of the place of trial, or that an action-oaunot be fairly and impartially tried in the county in„ which.it is pending. The Code of Civil Procedure does not require a decision which, in the nature of things, must ordinarily be premature. . ... If the motion to change the place of trial is brought to a hearing before he has an-, swered, the plaintiff cannot, by cross-motion, demand the retention of the action in the county where it is pending, on the ground of convenience,.etc.” (See also Heald v. Hendy, 65 Cal. 321.)
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