Hofheimer v. McIntee
Decision Date | 10 March 1950 |
Docket Number | No. 9660.,9660. |
Citation | 179 F.2d 789 |
Parties | HOFHEIMER v. McINTEE et al. |
Court | U.S. Court of Appeals — Seventh Circuit |
Charles Ralph Johnston, Chicago, Ill., for appellant.
Aaron Taymor, Chicago, Ill., Claude A. Roth, Harry E. Smoot, Chicago, Ill., Louis M. Mantynband, George L. Siegel, Chicago, Ill., for appellee.
Before KERNER, LINDLEY, and SWAIM, Circuit Judges.
On November 29, 1941, Reka Goldberg Hofheimer brought the instant action against defendants, seeking to establish a trust in certain preferred and common stock of the Hump Hair Pin Manufacturing Company and to recover the same from defendants. Defendants' motion to strike the complaint was sustained on May 5, 1942. No amended complaint having been filed, on December 2, 1942, the court dismissed the suit for want of prosecution. Later, in the same month, the court vacated the order of dismissal and allowed plaintiff to file an amended and supplemental complaint.
Plaintiff's counsel having entered the United States military service, on September 25, 1942, appellant, Charles Ralph Johnston, took his place and filed the amended complaint on December 10, 1942. Count 1 alleged that the stock in controversy was held by defendants for plaintiff's benefit and Count 2 sought to enjoin defendants from participating in certain plans for corporate reorganization in the District Court. Plaintiff's motion for a preliminary injunction having been denied, she appealed to this court, where the order was affirmed in Re South State Street Bldg. Corporation (Hofheimer v. Goldberg et al.), 140 F.2d 363. In the meantime defendants had, on January 9, 1943, moved to dismiss the amended and supplemental complaint. No move was ever made to bring this motion on for hearing and the District Court has entered no order with regard to it.
Plaintiff died on January 27, 1945, and no further action of any kind was taken in the pending suit until June 17, 1947, when defendants suggested her death and moved that the cause be dismissed pursuant to Federal Rule of Civil Procedure 25(a), 28 U.S.C.A., inasmuch as no party plaintiff had been substituted within two years after plaintiff's death.
On July 25, 1947, appellant, appearing in his own behalf, before action had been taken on defendants' motion to dismiss, filed a motion that he be substituted or joined or permitted to intervene as party plaintiff and that the suit proceed in his name as sole plaintiff or as co-plaintiff, pursuant to Rules 25(c) and 24 of the Federal Rules of Civil Procedure. The motion was accompanied by his affidavit reciting that on September 24, 1941, the deceased plaintiff had entered into a written contract with Harold M. Keele as her attorney to prosecute and collect her claims against defendants; that, thereby, she had agreed to pay to her attorney a contingent fee equal to one-third of all moneys and other property recovered; that, to insure payment, she had assigned to Keele one-third of the preferred and common stock then held by her in two certain corporations; that, under the agreement, if the attorney failed to collect, he was to retain all moneys theretofore paid to him, receive no further fee for services, and reassign the one-third of the said stock to the then plaintiff, and that on September 25, 1942, Keele, in turn, had transferred to Johnston his interest in and to the stock arising out of the assignment to Keele.
At the time appellant filed his application for designation as sole plaintiff, co-plaintiff or intervenor, he tendered a supplemental complaint in which he adopted the amended and supplemental complaint previously filed by him in behalf of the former plaintiff. On September 26, 1947, Addie Goldberg, executrix under the will of Reka Goldberg Hofheimer, deceased plaintiff, filed an answer in opposition to defendants' motion to dismiss the suit and petitioned that she be substituted as party plaintiff. She objected also to appellant's motion to be substituted as plaintiff or to be allowed to intervene. On February 4, 1948, the District Court entered an order dismissing the case and denying the motion of Johnston to be joined or substituted or to intervene as a party plaintiff. From that order, Johnston appeals. Addie Goldberg has not appealed.
Rule 25(a) (1) of Federal Rules of Civil Procedure is as follows:
Under Anderson v. Yungkau, 329 U.S. 482, 67 S.Ct. 428, 430, 91 L.Ed. 436, any substitution for the deceased plaintiff, under the rule quoted, necessarily had to be made within two years after the death of the deceased. No application for substitution was ever made other than appellant's motion and that of Addie Goldberg; each of these motions, however, came after the expiration of two years. The language of the Supreme Court is decisive: Under this authoritative statement, the trial court had no recourse except to follow the mandate of the rule and dismiss the suit. Anderson v. Yungkau, 329 U.S. 482, 67 S.Ct. 428, 91 L. Ed. 436.
One alternative of appellant's motion was that he be admitted as intervenor. We assume, for the purpose of this decision, that he has a lien upon the fruits of the suit to the extent of one-third thereof,...
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