Brunvold

For a number of years before 1937 Victor Johnson was engaged in business under the name and style of Victor Johnson and Company. The business and its assets were the community property of Victor Johnson and his wife Hilda. In 1932 Victor Johnson in the conduct of such business entered into a contract with plaintiff giving plaintiff a five year exclusive agency in Southern California for the sale of certain commodities handled by Victor Johnson and Company. Victor Johnson breached this contract in 1935 and plaintiff commenced an action against him for damages for such breach. Plaintiff recovered judgment in that action for $9,295.50 on September 29, 1937, and that judgment was subsequently affirmed in Brunvold v. Johnson, 36 Cal.App.2d 226 [ 97 P.2d 489 ],

After the trial of that action, but before judgment, Victor Johnson caused a corporation to be formed under the corporate name of Victor Johnson and Company, Inc. The incorporators were Johnson’s wife, Hilda, his attorney, Thomas D. Aitken and his secretary, M. Smith. To this corporation Johnson and his wife transferred all of the assets of the business theretofore transacted under the name of Victor Johnson and Company in…