S. Cal. Thrift & Loan v. Sylvania Elec. Prods., Inc.

Appellant Southern California Thrift & Loan complained in several counts against respondent Sylvania Electric Products, Inc., seeking various sums for breach of contract and fraud. Respondent’s demurrer to appellant’s third amended complaint was sustained without leave to amend. Judgment of dismissal was entered in favor of respondent.

The first cause of action alleges substantially:

Appellant, by merger, is the successor in interest to Pacific Thrift and Loan Company (Pacific). On October 9, 1961, Pacific entered into a factoring agreement with Pioneer Electronics Corp., a manufacturer and distributor of television (TV) tubes. Pacific agreed to buy from Pioneer accounts receivable representing sales of TV tubes which Pioneer manufactured and sold. On such purchases, Pacific remitted 80 percent of the accounts so purchased to Pioneer, and retained 18½ percent as a “dealer reserve” for protection in case of default by Pioneer or its customers.

On or about December 1, 1961, Pioneer ceased manufacturing tubes and entered into an oral agreement with Pacific and Sylvania. Pioneer agreed it would purchase its requirements of tubes from Sylvania for resale to its customers under the…