—Plaintiff Allan D. Greenwood prosecutes two appeals from judgments in a single action. One of them (No. 20859) is taken from a judgment of nonsuit in favor of defendant R. Bruce Murchison, entered upon plaintiff’s opening statement with respect to the fourth amended complaint. The other (No. 20972) challenges two judgments made upon sustaining demurrers to sixth amended complaint without leave to amend. 1
Appeal From Judgment op Nonsuit
The fourth amended complaint, upon which the case originally went to trial and which was before the court at the time of granting the Murchison nonsuit, alleged that plaintiff Greenwood, defendants Leon Mooradian, L. D. Reeder, Frank Mile, Leonard D. Ormsby, L. M. Fabricating Company and others, entered into a joint venture agreement on October 29, 1951, which was partly written and partly oral, the object being to produce for Lockheed Aircraft Corporation a certain product under purchase orders and a basic agreement made with that corporation. Defendant Murchison is not alleged to have been a member of the venture. The written agreement was made “between L. M. Fabricating Co. & Associates, First Party, and Reeder International & Associates, Second Party, as joint venturers and a joint venture to be known from date hereof as L. M. Engineering Company
&
Associates.” It was signed on behalf of L. M.
The averment is that “the defendants herein have conspired together to appropriate to themselves and convert to their own use and benefit the assets and profits of the
Plaintiff’s attorney made an opening statement which was supplemented until he declared it to be complete.
The rules pertaining to a motion for nonsuit based upon an opening statement are set forth in
Bias
v.
Reed,
The opening statement developed into a lengthy argument in which the judge participated and counsel for plaintiff was put to the burden of justifying his pleading and enumerating wrongful acts done by defendant Murchison in furtherance of the alleged conspiracy.
The attack upon the complaint was centered upon the generality of the averment of conspiracy. It is above quoted and is sufficient to satisfy the controlling authorities. The argument is that acts constituting the conspiracy, as well as those inflicting a wrong pursuant thereto, must be alleged. The cases are to the contrary. In
California Auto Court Assn.
v.
Cohn,
In
Abbott Kinney Co.
v.
Harrah,
The view that defendant Murchison must be shown to have done some overt and independently tortious act in order to be liable as a conspirator is a mistaken one. In the
California Auto Court Assn.
v.
Cohn
case,
supra,
The opening statement revealed that “defendant Mr. Murchison was the attorney for the defendant Ormsby during a substantial period of the time and is now representing some additional parties.” It also covered the fact of conspiracy both by direct charge and citation of acts alleged to have been done by defendant Murchison which would tend sub
The theory of the action was initially stated by counsel as follows: “The action that the plaintiff brings is for an accounting for profits and declaration of a constructive trust, and the action is against the fellow joint venturers and various individuals and corporations that have acquired assets of the joint venture. . . . And in addition to that, the plaintiff seeks 13 per cent of the profits of the venture. In other words, the $2,000.00 per month was not to be against the 13 per cent. It was $2,000.00 per month plus 13 per cent. The right to the $2,000.00 per month is based upon agreements made contemporaneously with the joint venture, and the agreement was that the plaintiff would receive this $2,000.00 per month for the term of the joint venture operation.” Assuming the truth of his allegations and oral statement, plaintiff has a good cause of action against all defendants who participated in diverting and presently possessing the assets and business of the joint venture of which he was a member. This in effect is the holding in
San Francisco Iron etc. Co.
v.
American Milling etc. Co.,
Defendant Murchison’s status as attorney for one of the other defendants does not immunize him from liability for torts committed in person or liability for wrongs done pursuant to conspiracy joined by him.
(Warner
v.
Roadshow Attractions Co.,
The granting of the nonsuit was erroneous. When that ruling was made plaintiff’s attorney under the compulsion of adverse rulings applied for leave to amend the complaint with respect to defendant Murchison. The motion was denied and that ruling is now urged as error. It is unnecessary to discuss that claim for the complaint was not fatally defective and the order granting the nonsuit was prejudicially erroneous.
Appeal from Judgment After Sustaining Demurrer to Sixth Amended Complaint
There were two demurrers to the sixth amended complaint and two separate judgments entered thereon. One demurrer was interposed on behalf of the Mooradian group of defendants and the other was that of the Reeder group. Both having been sustained without leave, judgments were entered accordingly. (See footnote 1, supra.) Plaintiff appeals from each judgment.
The sixth amended complaint alleges the same basic cause of action as the fourth amended complaint. Of course, Mr. Murchison is not a party to it. The making of the written and oral joint venture agreement of October 29, 1951, is alleged; also that one of the signatories, L. M. Fabricating Company and Associates, “is a fictitious firm name under which Mooradian conducted certain of his business ’ ’; that Reeder International and Associates, the other signatory, “is a fictitious firm name used for convenience only by plaintiff and defendants Reeder, Ormsby and Mile to execute the joint venture agreement” of October 29, 1951; also that L. M. Engineering Company and Associates “is a joint venture composed of the plaintiff and the defendants Reeder, Ormsby, Mooradian and Mile”; that “it was orally agreed at the time of the execution of said Exhibit ‘A’
2
by plaintiff and the defendants Reeder and Mooradian that execution of exhibit ‘A’ in the name of L. M. Fabricating Co.
&
Associates and Reeder International & Associates was for convenience only; that the rights and obligations of L. M. Fabricating Co. & Associates under said Exhibit ‘A’
A second count is an abbreviated charge of wrongful exclusion of plaintiff from participation in the joint venture of which he was a member, and nonpayment of moneys due him. The third to eighth counts charged different defendants separately with the receipt of specific moneys or assets of the joint venture, alleged to have constituted unjust enrichment.
The prayer is for dissolution of the joint venture created by the contract of October 29, 1951, a complete accounting of all its affairs, that defendants L. M. Engineering Company and Associates, Inc., and L. M. Industries, Inc. be required to account as constructive trustees, and for various other types of relief.
That the diversion to his own individual use of the entire assets of a joint venture by one member gives rise to a cause of action in favor of the nonparticipating member who has been injured thereby, and a right to such legal or
It is argued that plaintiff has no cause of action because his interest in the joint venture created by the agreement of October 29, 1951, is not deducible from the face of the writing, is provable only by oral evidence and that that violates the parol evidence rule. It is to be noted that the agreement does not declare the status of either of the named parties except through use of the phrase “as joint venturers.” Mooradian is described as “A managing Director” (the word “President” having been stricken), and he signs the instrument in the name of “L. M. Fabricating Co. & Associates, by Leon Mooradian, A managing Director.” Reeder is not described in the instrument but he signs “Reeder International & Associates, by L. D. Reeder, A managing Director. ’ ’ The agreement itself furnishes no clue to the nature of either organization, whether corporation, partnership, joint venture or mere fictitious name. It is not a violation of the parol evidence rule to prove by extrinsic evidence the identity of the parties in interest when it appears that the agreement has been made in the name of a partnership or joint venture, or an agent, especially when the nature of the entity named as a party or the names of the parties to the partnership or venture do not affirmatively appear in the writing.
(Milonas
v.
Sarantitis,
The sixth amended complaint states a cause of action and hence it was erroneous to sustain the general demurrer thereto.
The demurrers also contain numerous special grounds, such as want of capacity to sue, joinder of separate causes of action without separately stating them, uncertainties, ambiguities and unintelligibility. Since the enactment of section 472c, Code of Civil Procedure, in 1939, and the ruling in
Wennerholm
v.
Stanford University School of Medicine,
One of the special grounds in this case is that plaintiff has no capacity to sue in his individual capacity. It was held in
Klopstock
v.
Superior Court,
Another ground of special demurrer is joinder of two or more causes of action without separate statement, i.e., damages for breach of the joint venture agreement and action for accounting and dissolution.
San Francisco Iron etc. Co.
v.
American Milling etc. Co., supra,
and similar cases show this contention to be unsound. Plaintiff in a court of equity is entitled to any and all appropriate relief for the single wrong of excluding him from the joint venture of
Defendants attempt to raise the statute of limitations (Code Civ. Proc., § 339, subd. 1) with respect to plaintiff’s el aim for compensation. The complaint avers that plaintiff was ousted in March, 1952, and payment of his checks stopped on March 29, 1952. The original complaint was filed on June 4, 1952, and the sixth amended complaint on July 15, 1954. The compensation claim is but part of the right to an accounting which accrued in March, 1952, and the four-year statute of limitations is applicable. (16 Cal.Jur. § 83, p. 479.)
Various specifications of uncertainty, ambiguity and unintelligibility are made. Each has been examined and found to be not well taken. In reaching this conclusion we have kept in mind the rule that a demurrer must be overruled if it is directed to the entire complaint (as here) and one or more counts thereof are not vulnerable to the grounds alleged.
(Shook
v.
Pearson,
There was error in sustaining the special as well as the general demurrers to the sixth amended complaint.
The judgments in favor of the Mooradian group and the Reeder group of defendants (in No. 20972) are reversed. The judgment in favor of defendant Murchison (in No. 20859) is reversed.
White, P. J., and Doran, J., concurred.
Petitions for a rehearing were denied December 30, 1955, and respondents’ petitions for a hearing by the Supreme Court were denied February 1, 1956. Schauer, J., was of the opinion that the petitions should be granted.
Notes
Assigned by Chairman of Judicial Council.
One of those judgments runs in favor of L. M. Engineering Company and Associates, Inc., Leon Mooradian, L. M. Fabricating Company, L. M. Engineering Company, L. M. Industries, Inc., L. M. Fabricating Co. and Associates, L. M. Engineering Company and Associates, and E. R. Waltrous. The other judgment is in favor of L. D. Ormsby, L. D. Reeder, Reeder International, L. D. Reeder Lumber Company, L. D. Reeder Company of Los Angeles, Teelite Supply, Incorporated, and Reeder International and Associates.
The written agreement of October 29, 1951.
Appears to be a misprision, intended for 1952.
