Kellar

Kellar v. Hendey

Good Law
10 Cal. Rptr. 748·189 Cal. App. 2d 86·1961 Cal. App. LEXIS 2151
Court of Appeal of CaliforniaFebruary 10, 1961Civ. No. 6602California757 words

Opinion

Lead Opinion

Coughlin, J.

The issue on this appeal concerns the authority of a trial court, in an action against a corporate defendant, to determine which of two rival stockholder factions may file an answer on behalf of the corporation.

*87 The plaintiff brought an action against Hendey Manufacturing Corporation, a corporation, and others. Through an attorney by the name of Arnold, an answer was filed on behalf of one of the individual defendants and the corporation. Thereafter, through an attorney by the name of Burt, purportedly on behalf of the corporate defendant, a motion was made to strike the aforesaid answer and to permit the corporate defendant “to intervene and file” an answer and cross-complaint. This motion was denied. Through attorney Burt the “Intervener” appeals from the “Final Order denying the Motion to Intervene. ’ ’

It is apparent that a dispute exists between stockholders of the defendant corporation; that apparently two boards of directors have been elected to direct its affairs; that the corporation appeared in the action through an answer caused to be filed by an officer of the original board; that a minority stockholder purported to call a meeting for the purpose of electing a…

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