Herald v. Glendale Lodge No. 1289
Herald v. Glendale Lodge No. 1289
Opinion of the Court
This is an appeal from a judgment of dismissal after demurrer sustained to complaint without leave to amend. Plaintiff brought the action as a member of the defendant lodge to enjoin it from serving beer to the members at luncheons and banquets in violation of an ordinance of the city of Glendale prohibiting the serving or distribution of malt or spirituous liquors by any person, club, corporation or association.
No briefs are on file other than that of the city attorney of Glendale, appearing on behalf of the complainant, as amicus curiae. It is represented that the issue presented has become of slight practical concern to the club because of the potent stimulus to abstemious practices of the prohibition amendment to the federal constitution. However, as there is nothing before us to indicate that the contro *327 versy has become a moot question, it seems necessary to decide the points raised upon the record.
The demurrer upon which the complaint was held' insufficient alleged: insufficiency of facts to constitute a cause of action; that the acts complained of do not constitute a public offense or violation of the ordinance of the city of Glendale; and that the city of Glendale was without constitutional power to enact the ordinance prohibiting the serving of beer to its members by the lodge.
The first question which presents itself upon the face of the record—although not directly raised by the demurrer or referred to in the brief on file—is whether or not the defendant lodge can be sued in its associate name. It does not appear from the complaint that the defendant has any legal entity. The complaint alleges that “this defendant, Glendale Lodge No. 1289 of the Benevolent and Protective Order of Elks of the United States, is a fraternal and charitable organization, instituted upon the authority and by permission of the Grand Lodge of the Benevolent and Protective Order of Elks of the United States of America, and the only authority by which such Lodge 1289 has heretofore and now continues to exist is by virtue of a charter granted to it by said Grand Lodge, which charter is subject to revocation -by said Grand Lodge.” There is nothing in this statement to give legal personality to the defendant.
It must be considered as an unincorporated association, and as such cannot be sued in its associate name, unless it comes under the provisions of section 388 of the Code of Civil Procedure, which provides that “where two or more persons are associated in any business under a common name, whether it comprises the names of such persons or not, the associates may be sued by such common name. ’ ’
In the case of Warmam Co. v. Redondo Beach Chamber of Commerce, 34 Cal. App. 37, [166 Pac. 856], decided in June, 1917, the first division of the court of appeal for the second district held that the defendant, an unincorporated association organized for the general promotion of the business interests and general prosperity of the community, was not a business organization such as contemplated under section 388 of the Code of Civil Procedure, and that action against it could not be maintained in its common name— citing Swift v. San Francisco Stock & Exhange Board, 67 Cal. 567, [8 Pac. 94], a case of doubtful relevance, and *329 St. Paul Typothetae v. St. Paul Book Binders’ Union, 94 Minn. 351, [3 Ann. Cas. 695, 102 N. W. 727], which is clearly in point. In the latter case, construing a statutory provision practically identical with section 388 of the Code of Civil Procedure, in its application to an unincorporated trades union society, the Minnesota supreme court says: “The statute, it is clear, was not intended to include associations of this character. Its purpose was to authorize the courts to take jurisdiction over unincorporated associations engaged under a common name in some sort of business in which property is bought and sold, debts contracted—concerns owning and holding property and incurring pecuniary liability—and not associations of the character of labor unions having no property, engaged in no business occupation, in a proper sense of the term, and whose only function is the promotion of the interests and welfare of the persons who are members thereof.” On the other hand, the first appellate district court of this state, in a later decision, of date November 13, 1917—Camm v. Justice’s Court, 35 Cal. App. 293, [170 Pac. 409]-—without referring to the case in the second district, and, it must be admitted, without the consideration given to the matter in the last-mentioned case, uses the following language: “We do not think it was necessary to authorize the maintenance of the action against the members of the club by their common name, to show by the complaint the specific purpose or purposes for which the members of the club had so associated themselves together. Nor is it important whether it was a voluntary association, and not organized and conducted for pecuniary profit to its projectors or members. (Armstrong v. Superior Court, 173 Cal. 341, 342, [159 Pac. 1176].) By this we mean to say that section 388 has reference to an association of two or more persons who thus band together • for the purpose of transacting as a single body any kind of business, whether for profit to themselves or for charitable or philanthropic purposes.” The case of Armstrong v. Superior Court, cited in the foregoing decision, does not throw much light on the subject, because in that case the matter arose on a record, as shown by the pleadings, and the complaint having alleged the defendant to be “an association composed of two or more persons associated in *330 business under a common name,” it sufficiently appeared that it could be sued under section 388.
We are inclined to hold with the ruling in
Camm
v.
Justice’s Court,
35 Cal. App. 293, [170 Pac. 409]. We see no sufficient reason for restricting section 388 of the Code of Civil Procedure to associations formed for commercial business. As already pointed out, the term “business” has a common and general application to all sorts of enterprises which engage people’s attention and energies. When a number of persons are associated under a common name in an undertaking in which the associates incur obligations for which they are legally liable, why should they not be sued in the common name which they have adopted, whether it is a money-making concern or otherwise ? Indeed, the question of profit is the only distinction that exists between the two classes of associations suggested. If a number of persons were associated together furnishing to their patrons for pay precisely the same accommodations, entertainment and service that the Elks’ lodge furnishes its members, there would be no question but that they were engaged in a “business.” Why should a different rule of liability exist because the associates happen to contract their liabilities in an enterprise in which they are catering to themselves? The word “business,” in its broad sense, embraces everything about which one can be employed; and in its narrower sense it signifies a calling for the purposes of livelihood or profit.
(Easterbrook
v.
Orphan Society,
85 Conn. 289, [41 L. R A. (N. S.) 615, 82 Atl. 561].)
The next question—as to the ruling of the court on the demurrer to this complaint—goes to the power of a court of equity to enjoin the alleged unlawful serving of malt or spirituous liquors by defendant at the lodge banquets, and whether such action can be taken on the complaint of a member of the society complained of. These precise issues were presented to the supreme court in the cases of
Cuzner
v.
California Club,
155 Cal. 303, [20 L. R. A. (N. S.) 1095, 100 Pac. 868], and
Varcoe
v.
Alameda Lodge, B. P. O. E.,
174 Cal. 549, [163 Pac. 909]. Both actions were by individual club members to enjoin sale or distribution of liquors to members in alleged violation of local ordinances. Both cases went off on the decision of the supreme court that the practices complained of did not come within the provisions of the ordinances pleaded. No other point is referred to in the opinion in the Varcoe case; but in
Cuzner
v.
California Club,
the court, inferentially, at least, recognized the right of a club member to prosecute such action. Mr. Justice Angellotti, delivering the opinion of the court, said: “It is assumed by the parties that such an action will lie on behalf of a member of the club,” and cited
Klein
v.
Livingston Club,
*332
177 Pa. St. 224, [55 Am. St. Rep. 717, 34 L. R. A. 94, 35 Atl. 606]. In the case cited—and thus incidentally approved—the right of a club member to prosecute injunction proceedings to restrain illegal sale of liquors was recognized. But that ease also went off on the point that the acts of the club complained of were not in violation of law. The court, however, says: “A bill having for its sole purpose an injunction against crime or misdemeanor it is well settled will not lie; but it is just as well settled that equity will interfere if the alleged criminal acts go further and operate to the destruction or diminution of value of property.” In the ease of
Manderson
v.
Commercial Bank,
28 Pa. St. 379—which, in principle, is somewhat analogous to the case here—the charter of the bank, granted by an act of the legislature, provided that “the rate of discount at which loans shall be made shall not exceed one-half of one per centum for thirty days.” It was held that an injunction should issue at the instance of a stockholder to prohibit the practice of the directors in discounting notes at a rate in excess of that allowed by its charter, on the ground that such a practice jeopardized the rights of the stockholders. The court says: “A violation of the rule in relation.to the rate of discount may expose the institution to the penalties for usury, and may also put the continuance of the charter in doubt. A stockholder has a right to the necessary means to prevent a course of practice which may produce such results.”
The remaining question is as to the constitutionality of the ordinance pleaded and its application to the alleged
*334
practices of the defendant lodge.
The order and judgment appealed from are reversed.
Finlayson, P. J., and Thomas, J., concurred.
Reference
- Full Case Name
- GEORGE H. HERALD, Appellant, v. GLENDALE LODGE No. 1289, BENEVOLENT AND PROTECTIVE ORDER OF ELKS OF THE UNITED STATES OF AMERICA, Respondent
- Cited By
- 23 cases
- Status
- Published