California Savings & Loan Society v. Harris
California Savings & Loan Society v. Harris
Opinion of the Court
Plaintiff isa corporation, whose principal place of business is the city and county of San Francisco, and commenced the present action for the foreclosure of a mortgage that had been assigned to it. The mortgage was executed October 18, 1888, upon lands which were situated in that portion of the county of Fresno which was afterward included in the county
Section 299 of the Civil Code requires every corporation to file in the office of the county clerk of any county in the state in which it holds any property, except the county where the original articles of incorporation are filed, “ a copy of the copy of its articles of incorporation filed in the office of the secretary of state, duly certified by such secretary of state,” and declares, as the penalty for failure to comply with this requirement, that “ any corporation failing to comply with the provisions of this section shall not maintain or defend any action or proceeding in relation to such property, its rents, issues or profits, until such articles of incorporation, and such certified copy of its articles of incorporation, and such certified copy of the copy of its articles of incorporation, shall be filed at the places directed by the general law and this section.” The last clause of this sentence shows that the previous clause is to be construed distributively, and that the documents therein named are to be filed at the places required therefor respectively. As section 296 of the Civil Code requires the original
The failure to file this certified copy does not impose upon the corporation a loss or forfeiture of its property, or impair or deprive it of any cause of action or defense it may have in reference to such property. A previous filing of the certified copy is not a fact essential to the cause of action, or an element constituting the plaintiff’s right of action; and the omission of such an averment in the complaint is not a ground of demurrer (South Yuba Water Co. v. Rosa, 80 Cal. 333), or for the reversal of a judgment (Labory v. Orphan Asylum, 97 Cal. 270), and consequently is not a jurisdictional element in the suit. Nor does such failure afford to the other party any defense to the cause of action upon which a suit has been commenced, but is merely a special defense in the nature of a plea in abatement (Ontario State Bank v. Tibbits, 80 Cal. 68), by which the right of the plaintiff to maintain the action is suspended until the statute is complied with, and is subject to the same rules of pleading as are other pleas in abatement. Being matter merely in abatement, it is a defense which may be waived by the defendant, and which is waived by him unless it is affirmatively pleaded.
Pleas in abatement, or dilatory pleas, have never been favored, and are to be strictly construed. (Looms v. Randall, 3 Cal. 438; Larco v. Clements, 36 Cal. 132.) “ The party pleading them relies on technical law to defeat the plaintiff s action, and is held to a technical exactness in his pleading.” (Thompson v. Lyon, 14 Cal.
At the commencement of this action the plaintiff had not filed the certified copy with the county clerk of Madera county, but it did file it with that officer sev•sr.il months before the defendant filed his amended answer, setting up this defense, so that at the time this
The judgment is affirmed.
Van Fleet, J., and Garotttte, J., concurred.
Hearing in Bank denied.
Reference
- Full Case Name
- CALIFORNIA SAVINGS AND LOAN SOCIETY v. WILLIAM O. HARRIS
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- 44 cases
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- Syllabus
- Corporations—Action Respecting! Property—Failure to File Copy oe Articles—Plea in Abatement—Waiver.—A noncompliance with section 299 of the Civil Code requiring every corporation to file in the office of the clerk of any county in which it holds any property a certified copy of the copy of its articles of incorporation filed in the office of the secretary of state, under penalty of not being able to maintain or defend any action or proceeding in relation to such property until such copy be filed, does not impose upon the corporation a loss or forfeiture of its property; nor is a compliance therewith essential to a cause of action, or a jurisdictional element in the suit; but a failure to comply with the statute is merely ground for a plea in abatement, which may he and is waived unless it is affirmatively pleaded. Id.—Filing Copy after Suit, and before Plea—Maintenance of Action.—-Where the properly certified cop)' of the articles of incorporation is filed in the county where the property affected by a suit in favor of the corporation is situated, though such filing be after the commencement of the suit, but before the filing of a plea in abatement of the suit upon the ground that it was not filed, such plea thereafter interposed is unavailing to prevent a further maintenance of the action. Id.—Pleas in Abatement not Favored.—Pleas in abatement are not favored, and are to he strictly construed, and the matter in abatement must exist at the time of filing .of the plea.