MacLaren v. Kramer

Decision Date07 October 1913
Docket Number81912
CourtNorth Dakota Supreme Court

Rehearing denied November 21, 1913.

Appeal from District Court, McHenry County; A. G. Burr, J. From a judgment in defendant's favor, plaintiff appeals.

Reversed and a new trial ordered.

Pierce Tenneson, & Cupler, for appellant.

The deed of assignment is valid. In the absence of fraud, every contract of a debtor is valid against his creditors who have not a lien on the property affected. Rev. Codes 1905, § 6634.

A debtor may prefer one creditor to another. Rev. Codes 1905 § 6635.

The question as to whether a transfer is fraudulent is, in this state, one of fact, and not one of law. Rev. Codes 1905 § 6640.

Voluntary general assignments by failing debtors, unless prohibited by statute, are valid. 3 Pom. Eq. Jur. 3d ed. § 994, and note; 4 Cyc. 129, 163; 3 Am. & Eng. Enc. Law, 2d ed. 5.

Right to prefer creditors by paying the claims of some of them to the exclusion of others is a necessary result of the absolute dominion and jus disponendi which a man has over his own property. 5 Enc. Law & Pr. 1157; Joas v. Jordan, 21 S.D. 379, 113 N.W. 73; McAvoy v. Jennings, 39 Wash. 109, 81 P. 77.

As against the assignee, in whom the title to the debtor's property had vested, a creditor cannot acquire title by subsequent execution sale of property as the property of the assignor. Thaxton v. Smith, Tex. Civ. App. , 38 S.W 820, 90 Tex. 589, 40 S.W. 14; Taylor v. Mahoney, 94 Va. 508 27 S.E. 107.

A trust assignment is not fraudulent on its face because of the length of time granted for its execution. Graham v. Weaver, 97 Tenn. 485, 37 S.W. 221.

Assignment providing for employment of the debtor at a stated salary is not void per se. Smith v. Craft, 123 U.S. 436, 31 L.Ed. 267, 8 S.Ct. 196; Bamberger v. Schoolfield, 160 U.S. 149, 40 L.Ed. 374, 16 S.Ct. 225; Hoppe Hardware Co. v. Bain, 21 Okla. 177, 17 L.R.A. (N.S.) 310, 95 P. 765; Hurst v. Leckie, 97 Va. 550, 75 Am. St. Rep. 798, 34 S.E. 464; Red River Valley Nat. Bank v. Barnes, 8 N.D. 432, 79 N.W. 880; F. Meyer Boot & Shoe Co. v. C. Shenkberg Co. 11 S.D. 620, 80 N.W. 126; 5 Enc. L. & P. 1509.

Does not require notice to creditors before sale. McAvoy v. Jennings, 44 Wash. 79, 87 P. 53; Peterson v. Doak, 43 Wash. 251, 86 P. 663.

Preference is the rule in this jurisdiction. Cutter v. Pollock, 4 N.D. 210, 25 L.R.A. 377, 50 Am. St. Rep. 644, 59 N.W. 1062.

The answer of the defendant is not sufficient to raise the defense of justification, or that the assignment was fraudulent and void. 20 Enc. Pl. & Pr. 151-153; 35 Cyc. 1747-1818.

The writ must identify the court which rendered the judgment; a defect in this respect is substantive and material. 8 Enc. Pl. & Pr. 406; Trotter v. Nelson, 1 Swan, 7.

It was not necessary to serve notice of his claim on the sheriff. The sheriff already had notice. Aber v. Twichell, 17 N.D. 229, 116 N.W. 95; Mariner v. Wasser, 17 N.D. 361, 138 Am. St. Rep. 714, 117 N.W. 343; Probstfield v. Hunt, 17 N.D. 572, 118 N.W. 226.

The issues cannot be changed or new ones introduced by amendment, after cause has been tried and submitted. 31 Cyc. 402, 403, note, 18.

Christianson & Weber, for respondent.

Specifications of error not argued or presented by briefs will be deemed as abandoned. Rule 14, Supreme Court Rules; Pendroy v. Great Northern R. Co. 17 N.D. 434, 117 N.W. 531; Nokken v. Avery Mfg. Co. 11 N.D. 404, 92 N.W. 487; Foster County Implement Co. v. Smith, 17 N.D. 178, 115 N.W. 663; Ulmer v. McDonnell, 11 N.D. 399, 92 N.W. 482; Kelly v. Pierce, 16 N.D. 235, 12 L.R.A.(N.S.) 180, 112 N.W. 995.

The particular wherein a ruling or decision is claimed as error must be pointed out and the reason given. 2 Cyc. 1016.

Where defendant takes property wrongfully and by trespass, the plaintiff, if he chooses to bring this form of action, waives the trespass and admits the possession to have been lawfully gotten. Lord Mansfield in Cooper v. Chitty, 1 Burr. 20, 1 W. Bl. 65.

On the other hand, replevin and detinue were the proper forms of action to regain possession of personal property, and damages. 34 Cyc. 1353.

Here, claim and delivery takes the place of the common-law action of replevin. Willis v. DeWitt, 3 S.D. 281, 52 N.W. 1090.

The complaint in this action puts in issue the two main propositions in claim and delivery,--ownership and possession; and the answer was sufficient. Swope v. Paul, 4 Ind.App. 463, 31 N.E. 42; Haynes v. Kettenbach Co. 11 Idaho 73, 81 P. 114; Nichols & S. Co. v. Minnesota Thresher Co. 70 Minn. 528, 73 N.W. 415; Plano Mfg. Co. v. Daley, 6 N.D. 334, 70 N.W. 277; Bailey v. Swain, 45 Ohio St. 657, 16 N.E. 370; Conner v. Knott, 8 S.D. 304, 66 N.W. 461; Best v. Stewart, 48 Neb. 859, 67 N.W. 881; Pitts Agricultural Works v. Young, 6 S.D. 557, 62 N.W. 432.

Plaintiff must recover on strength of his own title, and not on weakness of that of the defendant. 38 Cyc. 2048.

Courts here may allow amendment to pleading even after judgment. Rev. Codes 1905, § 6883; Mills v. Howland, 2 N.D. 30, 49 N.W. 413.

Amendments are favored by the courts. Anderson v. First Nat. Bank, 5 N.D. 80, 64 N.W. 114; Moore v. Booker, 4 N.D. 543, 62 N.W. 607; Finnegan v. Ulmer, 31 Nev. 523, 104 P. 17.

The matter of allowing or refusing an amendment to the pleadings rests in the sound discretion of the court. Omlie v. O'Toole, 16 N.D. 126, 112 N.W. 677; Barker v. More, 18 N.D. 82, 118 N.W. 823; Webb v. Wegley, 19 N.D. 606, 125 N.W. 562; State Finance Co. v. Halstenson, 17 N.D. 145, 114 N.W. 724; Babcock v. Ormsby, 18 S.D. 358, 100 N.W. 759; First Nat. Bank v. Red River Valley Nat. Bank, 9 N.D. 322, 83 N.W. 221; Bigelow v. Draper, 6 N.D. 152, 69 N.W. 570; 1 Enc. Pl. & Pr. 518; Murphy v. Plankinton Bank, 18 S.D. 317, 100 N.W. 614; Warder v. Patterson, 6 Dak. 83, 50 N.W. 484; Rev. Codes, §§ 6766, 7326.

Even if an order of the court is irregular, it is binding until vacated. Warder v. Patterson, supra; Rowe v. Blake, 112 Cal. 637, 44 P. 1084; 29 Cyc. 1521, 1522; Mahon v. Fansett, 17 N.D. 104, 115 N.W. 79; McLain v. Nurnberg, 16 N.D. 144, 112 N.W. 243.

Acquiescence in error takes away the right of objecting to it. Rev. Codes 1905, § 6663; Pyke v. Jamestown, 15 N.D. 163, 107 N.W. 359; Rev. Codes, § 7317, subd. 32; Clyde v. Johnson, 4 N.D. 92, 58 N.W. 512; Moore v. Ellis, 89 Wis. 108, 61 N.W. 291; Marengo Sav. Bank v. Kent, 135 Iowa 386, 112 N.W. 767.

The complaint is insufficient in that it fails to set out facts showing the manner and validity of plaintiff's appointment as receiver. Wheeler v. Hawkins, 101 Ind. 486; Foster v. Brown, 65 Ind. 234; Cheadle v. Guittar, 68 Iowa 680, 28 N.W. 14; Rev. Codes, § 6858.

Verified demand for goods should have been served upon defendant. West v. St. John, 63 Iowa 287, 19 N.W. 238; Rev. Codes 1905, § 6951; Mariner v. Wasser, 17 N.D. 361, 138 Am. St. Rep. 714, 117 N.W. 343; Cheadle v. Guittar, 68 Iowa 680, 28 N.W. 14.

Trust deeds under general assignments, excluding creditors who do not assent to terms, are void. Also, where it is provided that the surplus, after settling with assenting creditors, should be paid to debtor. Grimshaw v. Walker, 12 Ala. 101; Lill v. Brant, 6 Ill.App. 366; Bangs v. Fadden, 5 N.D. 94, 64 N.W. 78; May v. Walker, 35 Minn. 194, 28 N.W. 252; McConnell v. Rakness, 41 Minn. 3, 42 N.W. 539; Rev. Codes, § 6637; Re Courtenay Mercantile Co. 186 F. 352; Lookout Bank v. Noe, 86 Tenn. 21, 5 S.W. 433; Sweet, D. & Co. v. Neff, 102 Wis. 482, 78 N.W. 745; Session Laws 1907, chap. 221.

Sales of property in violation of the law are invalid. Young v. Lemieux, 79 Conn. 434, 20 L.R.A.(N.S.) 160, 129 Am. St. Rep. 193, 65 A. 436, 600, 8 Ann. Cas. 452, 211 U.S. 489, 53 L.Ed. 295, 29 S.Ct. 174; Spurr v. Travis, 145 Mich. 721, 116 Am. St. Rep. 330, 108 N.W. 1090, 9 Ann. Cas. 250; Pierson & H. Co. v. Noret, 154 Mich. 267, 117 N.W. 644; Hanna v. Hurley, 162 Mich. 601, 127 N.W. 710; People's Sav. Bank v. Van Allsburg, 165 Mich. 524, 131 N.W. 101; Interstate Shirt & Collar Co. v. Windham, 165 Mich. 648, 131 N.W. 102.

The identity of the court and of the judgment is amply sufficient. 17 Cyc. (XII. A 1) 1001; Ross v. Shurtleff, 55 Vt. 177; Wright v. Nostrand, 94 N.Y. 31.

An officer is justified in executing any order or process, regular on its face, and coming from proper authority. Rev. Codes 1905, § 2512.

It has been held that a valid execution may issue, even though judgment has not been entered. Hastings v. Cunningham, 39 Cal. 137; Los Angeles County Bank v. Raynor, 61 Cal. 145; Drake v. Harrison, 69 Wis. 99, 2 Am. St. Rep. 717, 33 N.W. 81; Weigley v. Matson, 125 Ill. 64, 8 Am. St. Rep. 335, 16 N.E. 881; Fontaine v. Husdon, 93 Mo. 62, 3 Am. St. Rep. 515, 5 S.W. 692; Lowenstein v. Caruth, 59 Ark. 588, 28 S.W. 421.

No exceptions to the findings were taken, nor was request made for different findings, and there is nothing here, properly, for review. Washtenaw County v. Rabbitt, 99 Mich. 60, 57 N.W. 1084; Saukville v. Grafton, 68 Wis. 192, 31 N.W. 719; Ironton Cross Tie Co. v. Evans, 146 Mich. 197, 109 N.W. 254; Richardson v. Dunne, 3 Cal. Unrep. 728, 31 P. 737; Merriman v. McCormick Harvesting Mach. Co. 101 Wis. 619, 77 N.W. 880; Van Cise v. Merchants' Nat. Bank, 4 Dak. 485, 33 N.W. 897; Carstens v. Leidigh & H. Lumber Co. 18 Wash. 450, 39 L.R.A. 548, 63 Am. St. Rep. 906, 51 P. 1051; Weist v. Morlock, 116 Mich. 606, 74 N.W. 1012; Simmons Hardware Co. v. Rose, 140 Mich. 123, 103 N.W. 529; State ex rel. Milwaukee v. Milwaukee Electric R. & Light Co. 144 Wis. 386, 140 Am. St. Rep. 1025, 129 N.W. 623.

The waiver of a jury, in a case properly one for a jury, merely substitutes the court for the jury; ...

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