Majority
This is an action brought to reform a contract of purchase and sale of certain letters patent. Injunctive relief also is asked. Judgment was entered for plaintiffs, and from such judgment and from the order denying a new trial and a motion to retax costs the defendants Robert H. Anderson, Ruth B. Anderson, Ruth B. Anderson as assignee of Robert H. Anderson, Ruth B. Anderson as assignee of W. C. James and Robert H. Anderson have appealed.
The contract in question was entered into on April 15, 1921, between Ruth B. Anderson, Ruth B. Anderson as assignee of Robert H. Anderson and as assignee of W. C. James and Robert H. Anderson and Ruth B. Anderson as husband and wife, as first parties, and Holmes Bed Manufacturing Company, a copartnership, doing business under the fictitious firm name and style of Holmes Bed Manufacturing Company, consisting of Verne L. Holmes, Gene C. Holmes, and Bondorra Holmes, as second parties, and recites in part “that whereas, the said Ruth B. Anderson is the assignee and holder of letters patent issued by the United States Patent Office, being serial No. 1,074,592 of date September 30, 1913, which said letters patent were originally issued to Robert H. Anderson, and which said letters patent cover a valuable improvement upon doors and recess for disappearing beds, and, whereas, the said Ruth B. Anderson is the assignee of certain letters patent of July 10, 1906, issued to W. C. James, covering certain valuable improvements consisting of a pair of doors, one with hinge and the other pivoted in the center with a gas stove secured to said door; and whereas the said parties of the second part are desirous of securing an assignment of all rights accruing to said patents or said assignees and to the said Robert H. Anderson and Ruth B. Anderson, either separately or jointly, and are desirous of securing said rights by purchase; now, therefore, it is agreed between the parties hereto as follows, to wit: said parties of the second part do hereby agree to purchase said patents and all rights thereunder, and the said parties of the first part agree to sell the same for the sum
After the execution of the contract a license was granted defendant Los Angeles Wall Bed Company by Robert H. Anderson, one of the defendants, to manufacture wall beds under the patent right, and while Los Angeles Wall Bed Company was not a party to the contract in question, it was joined as a party defendant upon the theory that it had knowledge of the contract sought to be reformed and accepted the license granted with complete knowledge thereof, and which knowledge the court found in fact it had, and injunctive relief was therefore granted enjoining Los Angeles Wall Bed Company together with the other defendants from manufacturing, offering for sale or selling any beds manufactured in accordance with the letters patent granted plaintiffs under the agreement so long as plaintiffs retain the right granted to them.
The complaint alleges “that by mutual mistake of plaintiffs and said defendants the word ‘exclusive’ was not included in said contract; that the plaintiffs believed said contract granted to them the exclusive right to operate, manufacture, offer for sale, sell, distribute and otherwise exploit said patent, said improvements, and the beds manufactured under and in accordance with the said Letters Patent of the U. S. A., No. 1074592; that the defendants knew that plaintiffs so believed.” Plaintiffs, therefore, sought to have the agreement reformed by inserting the word “exclusive” so that the agreement would read that the said parties of the second part shall have the exclusive right to manufacture, sell and distribute, and otherwise exploit and distribute said patents and said improvements made thereunder.
The court found in accordance with the allegations of the complaint, and the defendants, with the exception of de
Answering point one, we think the complaint states facts sufficient to constitute a cause of action. The complaint was intended to conform to section 3399 of the Civil Code, considered with sections 1576 and 1578 of the same code. Section 3399 provides: “When, through fraud or a mutual mistake of the parties, or a mistake of one party, which the other at the time knew or suspected, a written contract does not truly express the intention of the parties, it may be revised on the application of a party aggrieved, so as to express that intention, so far as it can be done with
In support of their contention that the complaint does not state sufficient facts appellants have cited Auerbach v. Healey, 174 Cal. 60 [ 161 Pac. 1157 ], That case sets out the facts required to be alleged in an action to reform an instrument as follows: “The complaint should allege what the real agreement was, what the agreement as reduced to writing was, and where the writing fails to embody the real agreement.” We think these requirements were complied with in the present ease. Paragraph IV of the complaint contains the following allegations: “That it was the intent and purpose of plaintiffs that said defendants by the terms of said agreement that plaintiffs should have exclusive right to operate, manufacture, offer for sale, sell, distribute and otherwise exploit said letters patent of the United States of America, No. 1074592, the improvements made thereunder and of the beds manufactured under and in accordance with the said letters patent; that by mutual mistake of plaintiffs and said defendants the word ‘exclusive’ was not included in said contract; that the plaintiffs believed said contract granted to them the exclusive right to operate, manufacture, offer for sale, sell, distribute and otherwise exploit said patents, said improvements, and the beds manufactured under and in accordance with the said letters patent of the United States of America, No. 1074592; that the said defendants knew that plaintiffs so believed.” This paragraph alleged the intent; the omission of the word “exclusive”; the belief of plaintiffs and the knowledge of such belief by defendants, and attached as Exhibit “A” and made a part of the complaint is a copy of the agreement as executed showing what the agreement as reduced to writing was.
As to objection two that there is a misjoinder of parties defendant because Los Angeles Wall Bed Company is
The point urged under assignment three—that the court has no jurisdiction because the injunctive relief is a question of the infringement of a patent and is therefore in the exclusive jurisdiction of the federal district court— is without merit. There is no issue presented here on the question of an infringement of a patent right. Both respondents and Los Angeles Wall Bed Company were manufacturing beds under the same letters patent under agreements from parties claiming rights under the patent.
As to point four, that plaintiffs are not entitled to injunctive relief because they did not show any purpose or intent upon the part of defendants to violate the contract sought to be reformed, it may be said that defendant Los Angeles Wall Bed Company in its answer admits that prior to the commencement of the action it manufactured beds under its agreement with Robert H. Anderson. The injunctive relief granted by the judgment first decrees against the defendants Anderson, prohibiting them “from trans
We do not agree with appellants’ contention under assignment five that the judgment for reformation of the contract violates all rules pertaining to reformation of con
This testimony is sufficient to support the finding that it was the intent and purpose of the plaintiffs and defendants that by the terms of the agreement plaintiffs should have the exclusive right to operate, manufacture, offer for sale, sell and otherwise exploit 'those certain letters patent of the United States of America, No. 1074592. The evidence clearly shows that all the parties to the contract accepted Mr. Adams as their attorney in the preparation of the contract and accepted his advice as to the law, and that in the minds of all of the parties to the contract was the belief that by the agreement of sale the Andersons sold and transferred to the Holmes the exclusive right to use the patent. At any event, from the testimony quoted it is apparent that appellants understood the law to be as stated by Mr. Adams and that the Andersons, if they did not accept it as true, knew the misapprehension in the minds of respondents and did not rectify the error.
In Benson v. Bunting, 127 Cal. 532 , 537 [ 78 Am. St. Rep. 81 , 59 Pac. 991 ], the court says: “The mistake was one which related to rights which the redemptioners had in the property sold under the decree of foreclosure, and was solely
Hachstein v. Berghauser, 123 Cal. 681 [ 56 Pac. 547 ], cited by appellants, is not inconsistent with the views here expressed, and Burt v. Wilson, 28 Cal. 632 , 638 [ 87 Am. Dec. 142 ], cited, was decided in 1865, prior to the adoption of the code. In Kopp v. Gunther, 95 Cal. 63 [ 30 Pac. 301 ], the complaint failed to allege the mutuality of the mistake or knowledge on the part of the defendant-of the mistake or his failure to rectify it.
Appellants complain under point seven that the findings of fact do not support a judgment for the reformation of the contract. The trial court found that on April 15, 1921, plaintiffs and defendants Anderson entered into an agreement in writing referred to in the complaint as Exhibit “A,” which agreement is set forth in haec verba in the findings. The court also found that it was the intent and purpose of plaintiffs and defendants by the terms of the agreement that the plaintiffs should have the exclusive right to use the patent. The court further found that plaintiffs believed that they had such right and that defendants knew that plaintiffs so believed. That a mutual mistake was made in the language used in the agreement is obvious from these findings, and a specific finding is, therefore, unnecessary. In Jessen v. Peterson, Nelson & Co., 18 Cal. App. 349 , 352 [ 123 Pac. 219 ], the court says: “Undoubtedly it was the duty of the trial court to find upon all of the material issues raised by the pleadings, and the judgment in the present case could not be upheld if it were, true, as defendant claims, that there was an utter failure to find the facts of a material issue upon which a finding, had one been made, would not necessarily have been adverse to the defendant. Ordinarily it is necessary to the validity and sufficiency of findings that the trial court find the ultimate fact in issue, or such probative facts as will enable the court to declare that the ultimate fact necessarily results therefrom; but where probative facts are found from which the existence of the ultimate fact must be conclusively inferred the finding is sufficient, and a judgment based thereon will be sustained. (Coveny v. Hale, 49 Cal. 556 ; Smith v. Acker, 52 Cal. 219 ; Mott v. Ewing, 90 Cal. 231 [ 27 Pac. 194 ]; Alhambra Water Co. v. Richardson, 72 Cal. 598 [ 14 Pac. 379 ].)”
In Millard v. Legion of Honor, 81 Cal. 340 , 342 [ 22 Pac. 864 ], the court-uses this language: “Of course there ought to be findings on the material issues raised by the pleadings and evidence, but if it appear that there are, in substance,
The conclusions of law and portion of the judgment complained of under assignment eight, that the judgment must be vacated and set aside because it grants relief that is not alleged in the complaint, asked for in the prayer and is beyond the issues, is an exercise of the well-known right of a court of equity to determine all issues presented and to make its judgment effective.
Appellants’ objection nine, that the entire cost bill should have been disallowed because not served within five days after notice of the decision of the court, and their objection ten, that the court erred in allowing the item of costs set forth in the memorandum of costs and disbursements as “copy of transcript paid to B. E. McConnell, $90.40,” may be considered together. The findings of fact and conclusions of law were signed by the court on March 10, 1925, and served on the attorneys for the respective parties defendant, as shown by admissions of services indorsed thereon, on March 3, 1925, before being presented to the court. The memorandum of costs and disbursements was filed March 21, 1925. The affidavit of Earl Curtis Peck, one of the attorneys for plaintiffs, shows that the memorandum of costs and disbursements was served on the attorneys for defendants by mail on March 20, 1925, and that all of the attorneys of record in the action maintain their offices in the city of Los Angeles. As the findings of fact and conclusions of law were served on the defendants’ attorneys by the attorneys for the plaintiffs before they were presented to the trial court for signature or filed with the clerk, the attorneys for plaintiffs, in whose favor the decision ran, had knowledge of the decision on March 10, 1925, the date it was filed, and consequently the filing and service of the cost bill, even if properly served on March 21, 1925, was
Section 1011 of the Code of Civil Procedure relates to how and when notices and papers are to be served. It clearly indicates that every reasonable effort be exhausted to make a direct service upon the attorney or upon someone in his behalf, in person, before service by mail may be resorted to. It is only after unsuccessful attempts to serve the attorney in person or by leaving the paper to be served with someone of mature years, either at his office or his residence, have failed that a notice or other paper to be served may be mailed to him at his office or residence. The only other circumstances under which service by mail may be made are those prescribed in section 1012 of the Code of Civil Procedure: “Service by mail may be made, where the person •making the service, and the person on whom it is to be made, reside or have their offices in different places, between which there is a regular communication.” It is incumbent upon one making service by mail to show that the case is one in which such service is permitted and that the mode pointed out by the statute has been followed. “A deposit in a post-office in the county or place in which a party who may be
It follows that defendants’ motion that the cost bill be stricken from the records should have been granted. With this exception we find no prejudicial error.
The judgment is modified by striking therefrom the item of costs, and as so modified is affirmed. Respondents will recover their costs on appeal.
Tyler, P. J., and Knight, J., concurred.
Cases cited
- Auerbach v. Healy 174 Cal. 60 p. 282
- Ambrose v. Drew 139 Cal. 665 at 669 p. 283
- McCreery v. Everding 44 Cal. 284 p. 283
- Shakespear v. Smith 77 Cal. 638 p. 283
- Miller v. Highland Ditch Co. 87 Cal. 430 p. 283
- Andrews v. Pratt 44 Cal. 309 p. 283
- Benson v. Bunting 127 Cal. 532 at 537 p. 286
- Hunt v. Rousmanier's Administrators 8 Wheat. 174 at 215 p. 287
- Hannah v. Steinman 159 Cal. 142 at 146 p. 287
- Butte Creek Consol. Dredging Co. v. Olney 173 Cal. 697 at 708 p. 287
- Hochstein v. Berghauser 123 Cal. 681 p. 287
- Burt v. Wilson 28 Cal. 632 at 638 p. 287
- Kopp v. Gunther 95 Cal. 63 p. 287
- Jessen v. Peterson, Nelson & Co. 18 Cal. App. 349 at 352 p. 288
- Mott v. Ewing 90 Cal. 231 p. 288
- Alhambra Addition Water Co. v. Richardson 72 Cal. 598 p. 288
- Millard v. Supreme Council of American Legion of Honor 81 Cal. 340 at 342 p. 288, p. 289
- Harlan v. Lambert 19 Cal. App. 349 at 354 p. 289
- Haller v. Yolo Water & Power Co. 34 Cal. App. 317 at 319 p. 289
- Stoner v. Security Trust Co. 47 Cal. App. 216 p. 289
- Tower v. Wilson 45 Cal. App. 123 at 132 p. 289
- Lawson v. Steinbeck 44 Cal. App. 685 at 688 p. 289
- Harris v. Mount Washington Co. 55 Cal. App. 144 at 147 p. 289
- Griffith v. Welbanks & Co. 26 Cal. App. 477 at 480 p. 290
- Dow v. Ross 90 Cal. 562 p. 290
- O'Neil v. Donahue 57 Cal. 226 p. 290
- Mullally v. Irish-American Benevolent Society 69 Cal. 559 p. 290
- Reed v. Allison 61 Cal. 461 at 466 p. 291
- Thompson v. Brannan 76 Cal. 618 p. 291
- Koyer v. Benedict 4 Cal. App. 48 p. 291
- East Side Canal & Irragation Co. v. Superior Court 30 Cal. App. 528 p. 291