Palmco Corp. v. SUPERIOR COURT OF ORANGE CTY.
Opinion
Opinion
Wallin, J.
Palmco Corporation petitions for a writ of mandate directing the superior court to vacate an order for an accounting of its profits from a business conducted after operations were enjoined but while the injunction was stayed on appeal. It contends the court exceeded its jurisdiction. We conclude the trial court acted within its equitable powers and deny the writ petition.
Chul Ki Kim was a shareholder in Palmco, an importer and exporter of goods. Kim sold his shares to Palmco in exchange for an agreement that he would receive all rights of Palmco to engage in a stainless steel flatware import and sales business. Subsequently, Palmco entered into contracts with United and American Airlines to supply flatware. Kim filed suit against Palmco for specific performance and breach of contract and obtained a judgment awarding him damages and injunctive relief.
The judgment, filed August 27, 1987, ordered Palmco to pay Kim $325,000 plus 10 percent interest from June 3. In addition, Palmco was ordered to transfer to Kim all rights under the contracts with United and American Airlines, to sell its existing flatware inventory to Kim, to refrain from contracting with the two airlines…