Court Opinion

ID: 9734913
Source: CourtListenerOpinion
Date Created: 2023-08-26 17:51:03.296333+00
Date Added: 2024-06-11T18:26:52.298568
License: Public Domain

KAUFMAN, P. J.
I dissent.
This is an appeal from a dismissal of appellant’s action for the balance due on five negotiable notes executed by the respondent. The complaint alleged the execution of the notes, their endorsement to the appellant, and respondent’s default and nonpayment. The answer admitted all of these facts but argued that the appellant lacked the capacity to maintain this action because appellant’s endorser was a foreign corporation, not authorized to do business in California. After a hearing, the trial court granted respondent’s motion to dismiss pursuant to section 6801 of the Corporations Code on this ground, and entered judgment accordingly. On appeal, it is argued that: Respondent’s pleadings and proof fail to meet the requirements of section 6801 of the Corporations Code.
*94The five notes, payable to Douglas Investments Limited, a Canadian corporation, were executed by the respondent on January 25, 1954; April 12, 1954; May 27, 1954; October 25, 1954; and November 22, 1954. On January 11, 1957, Douglas Investments Limited duly endorsed these notes and delivered them to the appellant. At the trial, it was stipulated that the appellant was an assignee for the purpose of collection only and that Douglas Investments Limited was a foreign corporation not qualified to do business in California.
Section 6801 of the Corporations Code provides in part:
“A foreign corporation subject to the provisions of Chapter 3 of this part which transacts intrastate business in this State without complying therewith shall not maintain any action or proceeding upon any intrastate business so transacted in any court of this State, commenced prior to compliance with Chapter 3 until it has complied with the provisions thereof. ...”
The burden of proving that section 6801 precludes maintenance of an action is upon the party pleading the statute. (Automotriz etc. De California v. Resnick, 47 Cal.2d 792 [306 P.2d 1, 63 A.L.R.2d 1042]; W. W. Kimball Co. v. Read, 43 Cal.App. 342 [185 P. 192]; McMillan Process Co. v. Brown, 33 Cal.App.2d 279 [91 P.2d 613]; Indian Ref. Co., Inc. v. Royal Oil Co., Inc., 102 Cal.App. 710 [283 P. 856].) In order to prove that the statute applies, the respondent had to show that the particular transaction involved here was an intrastate one. Section 6203 of the same code provides:
“ ‘Transact intrastate business’ means entering into repeated and successive transactions of its business in this State, other than interstate or foreign commerce.”
Appellant’s contention is that the respondent did not meet the burden of proof under the above code sections. Appellant argues that the respondent’s answer did not plead that the obligations were intrastate and that there was no pleading of repeated and successive transactions or a pleading of facts showing intrastate business which constituted regular and ordinary business of the corporation. As pointed out above, in each cause of action, the appellant alleged that the five notes were made, executed and delivered at San Bruno, California, and all of these allegations were admitted. Respondent is not required to prove matters that are admitted. The uncontroverted evidence indicated that all of the negotiations for the five loans were also carried on exclusively in this state. I agree with the trial court that this was a sufficient showing *95of repeated and successive transactions of the Douglas Investments Limited in this state. I am unable to say that as a matter of law, there is no evidence to support the trial court’s finding. This must be the view of the majority if this judgment is to be reversed.
In conclusion, I am convinced there is evidence in the record before us to sustain the trial court’s finding that the foreign corporation in question was doing intrastate business in California. It is not for us to weigh the evidence. The majority, in effect, weigh the evidence. If there is any evidence in the record to sustain the finding, then the trial court’s judgment must stand. A reading of the record, the admissions in the pleadings, plus the testimony and documentary evidence have convinced me there is evidence to sustain the finding and judgment.
I would affirm the judgment of the trial court.
A petition for a rehearing was denied May 20, 1960.