Majority
From the order quashing service of summons on the ground that defendant was a nonresident temporarily in California as a party litigant and as a witness to testify in judicial proceedings, plaintiff appeals. Appellant contends that under the circumstances, the rule of immunity against service of process cannot be fairly invoked by respondent. This claim necessitates a review of the background of the controversy.
Appellant is a daughter of Morris Marks Landau, the deceased brother of respondent. In December, 1941, in the Union of South Africa, Morris created an inter vivos trust with respondent and one Abe Schwartz as trustees. At the time Morris departed this life in November, 1949, the beneficiaries of the M. M. Landau Trust were appellant, her three brothers[3] and three children of one of the brothers. All reside in London except appellant whose home is in California. The assets of the M. M. Landau Trust consist primarily of stocks and bonds of corporations of Rhodesia and the Union of South Africa. By his last will, Morris established other trusts, the trustees of which are Samuel Zagon and Leslie Landau, executors of Morris’ will, but they administer only that part of decedent’s estate in the United States, while respondent administers that part of the estate in the Union of South Africa and in Rhodesia.
Genesis op Controversy
After Morris’ decease, respondent purchased from appellant’s three brothers their interest in the assets of the M. M. Landau Trust which included half of appellant’s share theretofore sold to her brothers. Included among her conveyances to her brothers were shares of Morland Corporation, a South African concern. Appellant’s alleged controversy had its genesis in disputes arising out of respondent’s alleged treatment of such shares. After the superior court had forbidden the executors of Morris’ estate to prosecute an action in Rhodesia to establish an interest in the Morland shares, appellant, pursuant to repeated effort, induced respondent to purchase her distributive share of the Morris M. Landau Trust. Prior to such transaction, respondent hesitated to visit California for fear that appellant would subject him to litigation, but the purchase having been effected, he determined to come to America to attend to “certain personal business matters.” Soon after such decision, however, he was advised that the executors of the estate and the trustees of the M. M. Landau Trust were about to initiate further proceedings with reference to the Morland shares, whereupon respondent resolved to visit Los Angeles in order to appear in such proceeding and testify.
Respondent Served With Summons
Immediately upon his arrival in Los Angeles, October 11, 1952, respondent retained counsel for advice as to the probate
Service Quashed
Following the trial of the motion to quash the service of summons, the court ordered that the “said motion is granted.” While the ruling upon a motion is deemed to have been based upon the facts averred by the prevailing party and proved by his witnesses, the “Memorandum Ruling” filed by the judge, not containing any statement contrary to the evidence submitted by respondent, is hereby referred to as the findings of the court. By such ruling the court determined that:
The Findings
1. Respondent was the ancillary executor of his brother’s will in England, in the Union of South Africa and in Rhodesia;
2. Respondent arrived in California eight days after the executors of the M. M. Landau Estate had filed a petition for instructions, which required some response from Harry Landau;
3. Respondent was interested in the estate, both as legatee and as ancillary executor in England, in Rhodesia and in South Africa where he resides;
4. The hearing on the petition for instructions was continued’from time to time owing to respondent’s heart attacks;
5. He was subpoenaed by the executors as a witness and testified on November 18 and December 4;
6. Meanwhile, appellant had filed a proceeding to perpetuate respondent’s "testimony and caused a subpoena to be served upon him to appear before a notary to give his deposition. He appeared accordingly and was detained at such task until December 12 when at his apartment he signed the transcript.
7. Thereupon appellant’s agent served respondent with the summons here in question.
1. Respondent came into California for the sole and controlling purpose of appearing as a party and of testifying in the probate proceeding and
2. His actions disclosed no other purpose;
3. He was not the moving party in the probate proceeding;
4. Such proceeding was not so correlated with the action alleged in appellants’ complaint as to justify the application of the exception to the general rule. Such rule is that “during a period reasonably necessary to the giving of testimony in a judicial proceeding, a nonresident witness who enters a state primarily for that purpose is immune from service of summons. The rule is based upon public policy and, even though in derogation of the rights of the individual litigant, is justified by the public interest served by the granting of immunity.” (Velkov v. Superior Court, 40 Cal.2d 289 , 291 [ 253 P.2d 25 , 35 A.L.R.2d 1348 ].)
The General Rule Applied
The wisdom of the rule is demonstrated by the very facts of the instant action: respondent, an infirm and aging person residing in a distant land, feared to visit California as a party litigant and to give his testimony which was necessary to a proper decision on the issues of the pending proceeding, but for which he would not have come. Two continuances of the trial were granted because he was too ill to attend. He did nothing to extend his sojourn but began his conferences upon arrival and departed as soon as he had finished, except for his detention to testify in appellant’s special proceeding to perpetuate his testimony. From the facts of his prompt attention to the probate proceeding, his participation therein and his attention to no private business matter, contrary to his former practice, it was a fair inference that he did not come to California for any purpose other than to participate in a judicial proceeding.
Upon the trial court’s finding and upon the reasonableness thereof, in the light of the adopted evidence, the privilege of immunity against service on respondent was justifiably ordered. Since his testimony was needed, it was fair and proper and in the interest of public policy that he be shielded from harassment by lawsuits while in attendance upon judicial business. (Velkov v. Superior Court, supra, p. 292; Gerard v. Superior Court, 91 Cal.App.2d 549 , 552 [ 205 P.2d 109 ] ; Hammons v. Superior Court, 63 Cal.App. 700 , 707 [ 219 P. 1037 ].) The proper test is whether
It is observed that the high court considered Ramsay’s. “main and controlling” purpose as material. By reason of such language, Judge Hanson observed with reference to the instant matter: “It is plain upon the facts that the defendant entered into the State of California to appear as a witness, and indeed as a party, if necessary ... It was his sole and con
Prom such decisions it is now the universal rule that a nonresident witness while in attendance upon a trial in an alien state to give evidence enjoys immunity against service of civil process. (See also Hollidge v. Crumpler, 72 F.2d 381 , 382 [ 63 App.D.C. 330 ] ; Harvey v. Harvey, 199 Wis. 212 [ 225 N.W. 703 ].) No rule of practice is more firmly rooted in the jurisprudence of the United States. (Rale v. Wharton, 73 P. 739 , 740.) Such privilege is extended to suitors and witnesses to secure to them the right to give testimony and other assistance in the trial of an action. (Roschynialski v. Hale, 201 F. 1017 , 1018.)
An Exception to the Rule Urged by Appellant
An exception to the rule of immunity is that the nonresident is not exempt if the suit brought against him involves matters affecting the “same correlated subject matter and the action is brought in good faith and calls for the adjudication of substantial rights.” (Von Kesler v. Superior Court, supra.) That the subject of appellant’s action is not akin to the matters pleaded in the petition for instructions is readily demonstrable. By the former, she sued for
The Petition of the Executors and Trustees The petition of the executors and trustees recites substantially that: (1) they are trustees of decedent’s three testamentary trusts; Eunice is beneficiary of trust No. 1; (2) in April, 1952, the court instructed petitioners not to institute any legal action in the Union of South Africa or elsewhere to assert any claim to a share of capital stock of Morland Corporation; (3) pursuant to our petition the court gave oral instructions with respect to the Morland shares; (4) the written orders, prepared pursuant to such instructions, have not been entered; (5) the trust created by decedent in South Africa for the benefit of Eunice gives her 13/55 interest; (6) at the time of decedent’s passing, the ordinary shares of Morland Corporation Ltd. were held by the Morris M. Landau Trust; (7) all the voting power in Morland Corporation was issued to Harry Landau, Herbert Landau and Abe Schwartz; (8) Eunice was entitled to receive 280 shares of Morland Corporation out of the assets of the Morris M. Landau Trust; (9) in November, 1949, Eunice transferred to her brothers, Cecil and Harry, one half of her distributive share of Morris Landau Trust; (10) in January, 1950, the three brothers conveyed one half their distributive share of Eunice to Harry Landau Trust and such share included 600 shares of Morland Corporation, and a dispute arose between vendors and purchaser thereof with respect to valuation of the 600 shares; but they agreed to a reappraisement by their chosen accountants;
Wherefore, petitioners pray for: Instructions (1) to employ counsel in South Africa to sue for declaratory relief against all persons claiming an interest in any shares in
Significan ce of the Petition The foregoing digest of the petition discloses the wide divergence of the two pleadings. The petition asked the court to determine the present ownership of the Morland shares and debentures and the extent of the estate’s interest in them, if any, and also the status of the claim of Aquadau Equities Ltd. against the estate.[3] The court determined the status of the ownership of the Morland shares, its debentures and securities. It found how they had gone into and out of the Morris Landau Trust, but did not examine into the accounts of that trust. Also, it determined that the transaction which gave rise to the alleged Aquadau claim is independent of the
The Complaint Herein
The suit of appellant is against the trustees of an inter vivos trust for an accounting for money. It accuses respondent of commingling assets, borrowing from the trust and disloyalty. The petition in probate was filed for the purpose of obtaining a determination of the estate’s interest in the Morland shares and securities and did not concern itself with respondent’s fiduciary duties. Appellant’s action, on the other hand, is a direct challenge of respondent’s performance of his fiduciary duties as to all the assets of the trust. Should she prevail, she would not thereby recover a single item of the property described in the petition of the executors. Moreover, while the probate court instructed the executors how to challenge the Aquadau claim, the instant action seeks nothing with respect thereto.[3]
No Substantial Correlation
To establish a correlation of the probate proceeding with appellant’s action, it is necessary to show a substantial connection between the two. If such relation be not proved, the exception to the general rule of immunity does not apply. Two eases will illustrate the point. In Velkov v. Superior Court, 40 Cal.2d 289 [ 253 P.2d 25 , 35 A.L.R.2d 1348 ], Mrs. Velkov had come from New York to testify in a disciplinary proceeding she had initiated against her attorneys. While here, she was sued by her former lawyers for declaratory relief and they alleged the same subject matters which she had alleged in her complaint against her attorneys. By reason thereof, she was denied a writ to prevent the trial of the action instituted by those attorneys. Her case was an exception to the general rule of immunity, and service of process
* Her complaint is a voluminous recital of evidentiary matters concerning the several trust instruments of her father, their contents, her interests in each; the duties of the trustees, how respondent had dealt falsely with his obligations as trustee; that "about April 1940 defendant had acquired for the account of Morland Panama ... all of the Ordinary shares of Aquadau Equities Ltd. . . . that Harry Landau caused the said Morland Panama to write off the full value of the said Aquadau Equities Ltd. shares and reduce same on its books to nil.” Her prayer is: (1) for $100,000 damages; (2) for an account for all transactions with the assets of Morris Landau Trust, the Morland Panama or Morland South Africa corporations; (3) for judgment against defendant for the amount shown due as a result of such accounting; (4) for punitive damages in the amount of $100,000; and (5) for costs of suit.
Another Exception Not Applicable
The rule of immunity does not apply where the nonresident’s main and controlling business in the place where he is served is other than to attend to judicial proceedings. (See Day v. Harris, 14 N.Y.Supp. 3 , 4; 49 Mich.L.Rev. 907 , 909; Stewart v. Ramsay, 242 U.S. 128 [ 37 S.Ct. 44 , 61 L.Ed. 192 , 197].) As shown above, the court found that respondent’s main and controlling business in California was to assist in the proceedings with reference to the petition of the executors and trustees. The record supports such finding in that the evidence adopted shows that he had no business in this state other than to serve the court.
Findings Are Final
Appellant evidently proceeds upon the assumption that the trial court’s determination of the facts is still open to review. Such is not the law. Even though Judge Hanson had written no “memorandum ruling”—the findings are implied. When the ruling on any motion supported by affidavits is appealed from, the averments favoring the ultimate fact found are deemed to be true. All contrary averments will be disregarded by the reviewing court. Even where findings are based upon inferences only, the inferences most favorable to the order are to be considered. (Gordon v. Perkins, 203 Cal. 183 , 186 [ 263 P. 231 ] ; Doak v. Bruson, 152 Cal. 17 , 18 [ 91 P. 1001 ] ; Schreiber v. Hooker, 114 Cal. App.2d 634 , 640 [ 251 P.2d 55 ] ; Warren v. Warren, 120 Cal.2d 396 , 400 [ 261 P.2d 309 ] ; Estate of Standing, 99 Cal.App.2d 668 , 673 [ 222 P.2d 465 , 223 P.2d 255 ].) If there is any conflict in the affidavits, those in favor of the
Notwithstanding the rule and the authorities cited, appellant argues at length the evidence she introduced to show that respondent’s purpose in coming to California was to serve his selfish interests and not to participate in the probate proceedings as party or witness. She specifies (1) his letters of June 17, 1952, asking L. G. Landau to make arrangements , for an apartment in a local hotel and of August 27, detailing his itinerary; (2) his answer in the probate proceeding, requesting the court to instruct the executors that the estate has no interest in any outstanding shares of the Morland Corporation. In the first place, the finding supported by proof is final, and a retrial thereof is not permissible. (Estate of Bristol, 23 Cal.2d 221 , 223 [ 143 P.2d 689 ].) But appellant contends that another exception to the rule of immunity applies, namely, the correlation of the instant action with the matters pleaded in the petition for instructions.
Bespondent Did Not Initiate the Litigation
Another feature of the decisions wherein the exception to the immunity rule was invoked is that the nonresident was the very party who initiated the first action. Of course, where a nonresident travels into California and sues a resident of this state, it is unthinkable that the resident should be forbidden to litigate by appropriate pleading all issues created by his adversary. (Von Kesler v. Superior Court, 109 Cal.App. 89 , 91 [ 292 P. 544 ]; Mullen v. Sanborn, 79 Md. 364 [ 29 A. 522 , 523, 25 L.R.A. 721 , 47 Am.St.Rep. 421 ] ; Tiedemann v. Tiedemann, 35 Nev. 259 [ 129 P. 313 , 314].)
Bespondent was found not to have instigated the probate proceedings. Such finding based upon substantial evidence is final and conclusive.
No General Appearance by Bespondent
Appellant contends that respondent made a general appearance. She does not assert that the Notice of Motion to Quash Service of Summons is deficient as special appearance. It alleges that “Harry Landau, appearing specially for the purpose of giving this notice of motion and making the motion hereinafter set forth, and for no other purpose.” In his supplemental notice of motion to quash, respondent repeated the same declaration that he was appearing specially for the purpose of moving to quash the service of summons. But appellant erroneously conceives that a general appear
‘ ‘ Mr. Meyberg : Yes. ”
Appellant contends that if, pending a motion to quash, an application for time extension is made, such application “in this sequence is a general appearance.” She cites Payne v. Pullan, 44 Cal.App. 728 [ 187 P. 127 ], as authority for her thesis. The cited decision is not authority. In that case the defendant, specially appearing to make the motion, moved to quash. Later, he requested an extension of two days in the event his motion should be denied. In the action at bar, a stipulation had been made by the parties that respondent might have ten days to plead after his motion should be finally decided. After his counsel had said, “I wish at this time to make the motion,” he called the court’s attention to his agreement with appellant’s counsel and the court thereupon made the order: “Ten days.” After respondent’s counsel had repeated the understanding, appellant’s attorney confirmed it. It is the law that where a request for time to plead is made contemporaneously with the motion to quash, such request is not the equivalent of a general appearance. (Note, 81 A.L.R., p. 170.) In Powers v. Braly, 75 Cal. 237 [ 17 P. 197 ], a lawyer made a “special appearance” to move to strike the amended complaint and dismiss the action. On the same day he applied to the court for an extension of time for defendants to move and plead until it was determined which complaint he should plead to. It was held that his asking the court for an extension of time to move or plead until the motion was disposed of was an act ancillary to the motion. The court emphasized that the Code of Civil Procedure, section 1014, states the law: “A defendant appears in an action when he answers, demurs, or gives the plaintiff written notice of his appearance or when an attorney gives notice of appearance for Mm.”
In Davenport v. Superior Court, 183 Cal. 506 [ 191 P. 911 ], citing section 1014, supra, it was held that the order given
The order is affirmed.
McComb, J., and Fox, J., concurred.
Appellant’s petition for a hearing by the Supreme Court was denied November 17, 1954.
Footnotes
- * Harry, Cecil, and Leslie Landau.
- * That claim is against the African estate. Respondent could not be sued upon it in California.
Cases cited
- Velkov v. Superior Court 40 Cal.2d 289 at 291 p. 687, p. 694
- Gerard v. Superior Court 91 Cal.App.2d 549 at 552 p. 687
- Hammons v. Superior Court of Los Angeles 63 Cal.App. 700 at 707 p. 687
- Stewart v. Ramsay 242 U.S. 128 at 197 p. 688, p. 695
- Slosberg v. Municipal Court 101 Cal.App.2d 238 at 240 p. 689
- Franklin v. Superior Court 98 Cal.App.2d 292 at 294 p. 689
- Fox v. Hale & Norcross Silver Mining Co. 108 Cal. 369 at 424 p. 689
- Horn v. Superior Court 94 Cal. App.2d 283 at 285 p. 689
- Von Kesler v. Superior Court 109 Cal. App. 89 at 90, at 91 p. 689, p. 696
- Goes v. Perry 18 Cal.2d 373 at 378 p. 690
- Warren v. Warren 120 Cal.App.2d 396 at 400 p. 690
- Gordon v. Perkins 203 Cal. 183 at 186 p. 695
- Doak v. Bruson 152 Cal. 17 at 18 p. 695
- Schreiber v. Hooker 114 Cal. App.2d 634 at 640 p. 695
- Nelson v. Berggren 99 Cal.App.2d 668 at 673 p. 695
- Estate of Bristol v. Young 23 Cal.2d 221 at 223 p. 696
- Payne v. Pullan 44 Cal.App. 728 p. 697
- John Powers v. Braly 75 Cal. 237 p. 697
- Davenport v. Superior Court of Imperial County 183 Cal. 506 p. 697