Kellison

The question presented is whether a defendant, who competently alleges he was damaged by voluntary compliance with a temporary restraining order with which he was never served, is entitled to prove his damages in a proceeding to enforce the liability of the surety after the complaint for injunction has been dismissed on plaintiff’s motion. We hold that he is.

Prior to July 26, 1980, defendant, James F. Kellison, was president and a member of the board of directors (board) of plaintiff Special Editions (Special Editions), a California corporation engaged in the business of designing, producing and marketing custom automobiles. Apparently, there was disagreement among the members of the board over the manner in which defendant conducted the affairs of the corporation. On July 26, 1980, a majority of the board voted to remove defendant as president and as an employee of the corporation and to move the business operations from Lincoln, California, to southern California.

On the day following his ouster, defendant went to the corporate premises and removed fixtures, assets, books and records, etc. On July 28, 1980, Special Editions filed a complaint for conversion and…