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Innes v. Diablo Controls, Inc.

California Court of Appeals, First District, Fifth Division

June 16, 2016

JOHN HERBERT INNES, as Trustee, etc., et al., Plaintiffs and Appellants,
v.
DIABLO CONTROLS, INC., Defendant and Respondent.

         Superior Court of Alameda County, No. HG15761845, Hon. Ioana Petrou, Judge.

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[Copyrighted Material Omitted]

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         COUNSEL

         Roberts & Elliott, James Roberts and Sharmi Shah for Plaintiffs and Appellants.

         Greenan, Peffer, Sallander & Lally, James S. Greenan and Edward Romero for Defendant and Respondent.

         OPINION

         SIMONS, J.

         John Herbert Innes and Catherine Lynne Innes, as Trustees of the Innes Family Trust UDT April 22, 1992, appeal the trial court’s order denying their petition to compel inspection of certain records of respondent Diablo Controls, Inc. (Diablo Controls) pursuant to Corporations Code, section 1601.[1] We agree with Jara v. Suprema Meats, Inc. (2004) 121 Cal.App.4th 1238 [18 Cal.Rptr.3d 187] (Jara) that section 1601 requires that the records be made available for inspection at the office where such records are kept. Further, we reject appellants’ contention that Jara does not govern records like those in this case that are maintained out-of-state. Accordingly, we affirm.

         BACKGROUND

         Appellants are shareholders of Diablo Controls, a California corporation. In February 2015, appellants submitted a written demand to inspect Diablo Controls’ accounting books and records; the minutes of proceedings of shareholders, the board, and committees of the board; and certain other

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records.[2] The demand requested the inspection take place at Diablo Controls’ California office. The requested records were located in a Diablo Controls office in Illinois. Diablo Controls shipped records to California and made them available for appellants’ inspection at its counsel’s California office.

         Appellants found the records available for inspection to be incomplete and filed the instant petition for a writ of mandate in March 2015. Appellants argued Diablo Controls’ failure to make all requested records available for inspection violated section 1601. After the petition was filed, Diablo Controls mailed appellants copies of additional records and made other records available ...


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