Dillard v. McKnightDillard v. McKnight
Plaintiffs’ son died on July 24, 1941, as the result of injuries sustained by him four days earlier in a collision between a Pontiac coupe in which he was a passenger and a Studebaker automobile then being operated by one McKnight in an allegedly negligent manner. To recover damages for their son’s death, plaintiffs in September, 1941, instituted the instant action against said McKnight; his employer, J. F. Wilcox; the owner of the Studebaker automobile, W. J. Neville ; Thorley Oil Company; and several fictitiously named defendants. On August 11,1942, the cause went to trial as to certain defendants on the first amended complaint and at the conclusion thereof, a motion for a nonsuit was granted as to defendant Thorley Oil Company. Judgment was then ordered “for the plaintiffs against the defendants General Jackson McKnight and J. F. Wilcox in the sum of $7500.00 and . . . in favor of the defendant W. J. Neville.” The court found, among other things, that “at all times herein mentioned, defendant General Jackson McKnight was the agent, servant, and employee of the defendants herein, and that he was acting within the scope of his employment as such agent, servant and employee. ’ ’ Accordingly, on September 2,1942, judgment was entered in plaintiffs’ favor as indicated; it became final, and execution thereon was returned unsatisfied.
As the result of certain evidence adduced upon the 1942 trial, plaintiffs claim to have learned for the first time the identity of James A. Bower and Robert A. Thorley as proper parties to this action. Accordingly thereafter, service Of process was made upon them in pursuance of their fictitious designations as Doe IY and Doe Y, respectively, and on August 16, 1946, plaintiffs’ first amended complaint herein was amended to show their true names. On September 12, 1946, the cause went to trial for the second time before the same judge. At the conclusion of this second trial, it was found by the court that the automobile collision was the “direct and proximate result of the negligence of the defendant General Jackson McKnight”; that on the day of the accident said “defendant General Jackson McKnight was employed by the defendants J. F. Wilcox, Robert A. Thorley, and James A. Bower as a driller” on a certain oil well but “at the time” in question he “was not acting within the scope of his employment.” Accordingly, judgment in favor of defendants Bower and Thorley was entered on December 27, 1946; and plaintiffs appeal therefrom.
In taking their appeal, plaintiffs properly note that “all
It is undisputed that in the “first part of July,” 1941, defendant Wilcox was drilling an oil well close to the corner of Main Street and Sepulveda Boulevard, near the town of Lomita, in the county of Los Angeles; that defendant Bower helped finance the venture on a “50-50” basis, and that they ran out of money; that thereupon they began negotiations with defendant Thorley, who operated a producing oil well located on certain property which he owned in the city of Los Angeles; that as a result of these negotiations defendant Thorley invested some money in the “Wilcox well” and on July 14, 1941, as a limited partner executed Articles of Limited Partnership (which were never filed or recorded [Civ. Code, § 2478, subd. (1) (b)]) in connection with such investment; that six days later—July 20, 1941-—defendant McKnight, who was then, and theretofore had been, employed as a “driller” by defendant Wilcox, became involved in the accident heretofore mentioned.
Plaintiffs first argue the significance of the established partnership undertaking in relation to the principle of res judicata as a factor in the second trial. That principle precludes parties or their privies from relitigating an issue, that has been finally determined by a court of competent jurisdiction. (1 Freeman on Judgments (5th ed.) §407, p. 887; 2 Black on Judgments (2d ed.) § 504, p. 764; 50 C.J.S., Judgments, § 592, p. 11; 15 Cal.Jur., Judgments, §166, p. 97.)
There is no dispute here, of course, as a matter of record, that the issue of defendant MoKnight’s scope of employment in relation to the happening of the accident in question was completely adjudicated incident to the entry of judgment against defendant Wilcox at the conclusion of the first trial in this action, and that such judgment has long since become final, but the third essential element relative to the identity of the parties does not appear. It is generally recognized that partners are not in such privity with one another that a judgment against one partner in an action brought against him personally on a tort arising out of the partnership business is res judicata when the same issues are raised in subsequent litigation against another partner. (1 Freeman on Judgments (5th ed.) § 518, p. 1112; 2 Black on Judgments (2d ed.) § 566, p. 852; 50 C.J.S., Judgments, § 806, pp. 351-352;
Tonge
v.
Item Pub. Co.,
It is true, as plaintiffs argue, that while the term “privity” has been defined as envisaging “an interest in the subject matter” of the litigation acquired “after rendition of the judgment . . . through or under one of the parties, as by inheritance, succession, or purchase”
(Bernhard
v.
Bank of America, supra,
Of course, there are situations where persons neither parties nor privies to parties to an action may be bound by a judgment. The rule is stated in section 84 of the Restatement of Judgments as follows: “A person who is not a party but who controls an action, individually or in co-operation with others, is bound by the adjudications of litigated matters as if he were a party if he has a proprietary or financial interest in the judgment or in the determination of a question of fact or of a question of law with reference to the same subject matter or transaction; if the other party has notice of his participation, the other party is equally bound.” (See, also, 1 Freeman on Judgments (5th ed.) § 432, p. 939 et seq.; 50 C.J.S., Judgments, §§ 782-783, pp. 317-320.) In urging the binding effect of the first trial’s findings and judgment against defendants Bower and Thorley on the second trial, plaintiffs appear to rely in part upon a claim of their exercise of control over the defense in the prior litigation. Thus, plaintiffs argue that from the record it may be inferred that defendants Bower and Thorley, through their correspondence with defendant Wilcox’ counsel at the time of the first trial,
But the frailty of plaintiffs’ position in this respect arises from their failure to urge the claim of res judicata until they moved unavailingly for a new trial herein, and at no time in the proceedings of the second trial did plaintiffs put in issue the question of the participation of defendants Bower and Thorley in the conduct of the prior litigation. Neither Bower nor Thorley nor the partnership was named as a party to the action as it was prosecuted through the first trial and culminated in a judgment against defendant Wilcox, and defendants Bower and Thorley in the second trial might have been able to prove that they did not participate in the conduct of the prior defense or agree to have their copartner Wilcox conduct it for them had plaintiffs attempted to prove that they did. The entire matter of such alleged participation and exercise of control would be a question of fact to be resolved from the evidence adduced thereon, and defendants Bower and Thorley would be entitled to have their day in court in challenge of such charge by plaintiffs. (See 4 Jones’ Commentaries on Evidence (2d ed.) § 1810, p. 3351 et seq.) Otherwise, to follow plaintiffs’ theory, mere knowledge of one partner that his copartner is being sued on an alleged partnership transaction would be sufficient to render the first judgment res judicata on all issues litigated, if in the subsequent prosecution of the action against the later-served partner proof is made of the relationship he sustained to the party-defendant in the prior trial. Such an extension of the doctrine of res judicata cannot be reconciled with the requirements of due process as above discussed. Nor does plaintiffs’ citation of the case of
Shamlian
v.
Wells, supra,
Nor does it avail plaintiffs to rely on the principle of judicial notice in support of their present plea of res judicata. While a trial court is bound to take judicial notice of its own records in the same action (20 Am.Jur., Evidence, § 86, p. 104; 10 Cal.Jur., Evidence, § 52, p. 728;
Craiglow
v.
Williams,
There now remains for consideration plaintiffs’ contention that the findings of the trial court with respect to whether defendant McKnight was acting within the scope of his employment at the time of the accident are contrary to the undisputed evidence in the record, and that they are therefore wholly unsupported.
It appears that one Bob Hickerson, pursuant to the suggestion of defendant Thorley made shortly after entry into the joint enterprise in question, was placed in charge of the drilling operations at the Wilcox well. Sometime during the four years intervening between the first and second trials said Hickerson died and his testimony in the first trial was not submitted for inclusion in the present record. The only evidence on the scope of employment issue is the testimony of defendant McKnight, called as a witness for plaintiffs. He stated that he was employed as a “driller” on the Wilcox well and that he took his “orders” from Bob Hickerson, his
It further appears from defendant McKnight’s testimony that when Hickerson “started to leave” the well at about “7:30 or 8:00 p. m.” he found that “he could not get his ear started”; that then McKnight, at Hickerson’s direction and using the car of one Jack Neville, another employee at the well, “pulled him [Hickerson] ” to two service stations; that “there was no mechanic” at either station; and that sometime “between 9:00 and 10:00 p. m.” McKnight left Hickerson and the latter’s ear at the Thorley Oil Company well in Los Angeles, some “eight or nine miles” from the Wilcox well. Before they parted Hickerson gave McKnight certain instructions to carry to the driller who was to come on duty at midnight. McKnight left Hickerson with the intention of returning to the Wilcox well. As he drove along the road, he discovered that he had “missed the Main Street crossing . . . didn’t see the sign”—“the lights were not very good on the car”—and he said he then decided to drive first to a hotel where he believed he could find a derrick man to employ, before going “back to the well.” He claimed that he made no stops, except at boulevard signals, “between the time [he] unhooked [his] car from Mr. Hickerson’s truck until the . . . accident,” which occurred about 10 p. m. He was “knocked unconscious as a result of the accident,” and he said that he “came to ... in the Los Angeles County Jail.” When asked .as to whether he had “had any drinks, any alcoholic drinks” on the day of the accident, he answered that he had “five or six coke highballs” around “12:00 or 1:00 p. m.”—“before [he] got on the job” but none later. Amplifying this point and in response to the query as to whether he had ever been convicted of a felony, ’ ’ he stated: “Yes . . . in connection with this accident.” Then in response to several further questions, he testified that he was “imprisoned in the county jail ... a straight jail sentence [of] a year” but he “never spent any time in the State Prison”; that “they got [him] on three heads, negligent homicide, hit and run, and drunk driving.” Thereupon the
During the two or two and one-half hours he was assertedly driving in the evening of July 20, 1941, McKnight was not sure “how far” he traveled but apparently counsel agree it was about “ten” miles, as the route was traced on the map introduced in evidence by plaintiffs as follows: 7.6 miles in towing Hickerson’s car from the Wilcox well to the place where he left the latter in Los Angeles, at the Thorley Oil Company well; and then 2.4 miles to the scene of the accident. After hearing the evidence, the trial judge said: “I do not think he [McKnight] was within the scope of his authority and he had definite instructions to go back to the lease [the Wilcox well] and when the time came for the new driller to come on the morning tour to tell him how many points to keep the pressure on. From the time he went on duty and the time the accident happened, which was around 10:00 o’clock, I am satisfied there must have been several hours in there he cannot very well explain. I think he was out drinking during that time, because he obviously was drunk, and was so found by the Court, at the time of the accident. . . . that is the conclusion that I am drawing from the evidence, that he was drunk and that he was not doing anything within the scope of his authority. In fact he was told to go back to the lease [the Wilcox well], and it was obvious that he was to pick up the roughneck [the derrick man] at some other time or any time when he would go by there, either that one or another one—from his own testimony. I cannot see where he was in the business of the partnership at that time. . . I find that he was on his own and he was undoubtedly drinldng and he wasn’t doing any of the business that he was supposed to be doing. In fact, he was told by Mr. Hickerson to come back to the lease [the Wilcox well] and he intended to come back [there] himself. He said that both times he was on the witness stand, and I think he must have had a few drinks after he left Mr. Hickerson and prior to the time he says he got lost. I think that was probably the reason he got lost, and the Court finds against the plaintiffs” on that ‘ ‘ one issue of [whether McKnight was] acting within the scope of his employment.”
The weight and sufficiency of the evidence, the construction to be put upon it and the inferences to be drawn therefrom were matters for the trier of the facts.
(Singh
v.
Furuta,
In accord with these settled principles, plaintiffs’ challenge of the sufficiency of the evidence in support of the trial judge’s finding on the scope of employment issue cannot prevail. The verity of McKnight’s testimony was to be tested by the trial judge in the light of all the facts and circumstances, and he was free to disbelieve such parts of the witness’ account as appeared to him “evasive, equivocal,
It is true that because of the conflicting findings made in the two trials on the scope of employment issue, two opposite judgments arising from the same automobile accident have been entered, but the propriety of such result cannot be disputed. The same judge presided at. both trials and, as the record here reveals, he expressly declared that in his opinion the evidence presented was “not . . . the same” in each instance, there was “different testimony” and “some testimony that wasn’t in the other case.” As the application of the principle of res judicata has been heretofore discussed, the prior adjudication of plaintiffs’ cause of action against defendant Wilcox did not bind his copartners, defendants Bower and Thorley, who were not in legal privity with him, and consequently they were entitled to their day in court on the issues raised by the pleadings.
This is not a situation where (1) two conflicting judgments arising out of the same events were both before this court at the same time, (2) the essential facts were similarly presented, and (3) the evidence to a large extent was undisputed.
(Inyo Chemical Co.
v.
City of Los Angeles,
The judgment is affirmed.
Gibson, C. J., Shenk, J., Edmonds, J., Carter, J., Traynor, J., and Schauer, J., concurred.