337 F.2d 24 (8th Cir. 1964), 17352, Rock Island Millwork Co. v. Hedges-Gough Lumber Co.

Docket Nº:17352, 17353, 17640.
Citation:337 F.2d 24
Party Name:ROCK ISLAND MILLWORK COMPANY and Wholesale Distributing Co., Appellants, v. HEDGES-GOUGH LUMBER COMPANY, V. R. Gough, Margaret H. Gough, June E. Current, Charles E. Hedges, Charles E. Hedges and The Merchants National Bank, Executorsof the Estate of Helen L. Hedges, Deceased, and W. D. Willer, Appellees. HEDGES-GOUGH LUMBER COMPANY, Appellant, v. V
Case Date:October 14, 1964
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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Page 24

337 F.2d 24 (8th Cir. 1964)

ROCK ISLAND MILLWORK COMPANY and Wholesale Distributing Co., Appellants,

v.

HEDGES-GOUGH LUMBER COMPANY, V. R. Gough, Margaret H. Gough, June E. Current, Charles E. Hedges, Charles E. Hedges and The Merchants National Bank, Executorsof the Estate of Helen L. Hedges, Deceased, and W. D. Willer, Appellees.

HEDGES-GOUGH LUMBER COMPANY, Appellant,

v.

V. R. GOUGH, Margaret H. Gough, June E. Current, Charles E. Hedges, Charles E.Hedges and The Merchants National Bank, Executors of the Estate of Helen L.Hedges, Deceased, and W. D. Willer, Appellees.

ROCK ISLAND MILLWORK COMPANY, Wholesale Distributing Company and Hedges-GoughLumber Company, Appellants,

v.

V. R. GOUGH, Margaret H. Gough, June E. Current, Charles E. Hedges, Charles E.Hedges and The Merchants National Bank, Executors of the Estate of Helen L.Hedges, Deceased, and W. D. Willer, Appellees.

Nos. 17352, 17353, 17640.

United States Court of Appeals, Eighth Circuit.

October 14, 1964

Page 25

John D. Randall, Cedar Rapids, Iowa, made argument for appellants and cross-appellant Hedges-Gough Lumber Co., and filed brief.

William R. Crary, Cedar Rapids, Iowa, made argument for appellees V. R. Gough and Margaret H. Gough and filed brief with William O. Gray, Cedar Rapids, Iowa.

C. J. Lynch, Cedar Rapids, Iowa, made argument for appellees June E. Current, Charles E. Hedges, Charles E. Hedges, and Merchants Nat. Bank, executors of estate of Helen L. Hedges, deceased, and filed brief with William M. Dallas, Cedar Rapids, Iowa.

Before MATTHES, BLACKMUN and RIDGE, Circuit Judges.

MATTHES, Circuit Judge.

These are appeals from a money judgment in favor of plaintiffs, Rock Island Millwork Company (Rock Island) and Wholesale Distributing Company (Wholesale), against the corporate defendant Hedges-Gough Lumber Company, 1 and in favor of the individual defendants on plaintiffs' causes of action and in favor of the individual defendants on the corporate defendant's cross-claim.

A chronological recitation of the proceedings in the trial court will be beneficial in understanding the basis for our ultimate conclusion that diversity jurisdiction is lacking and that the judgment must be vacated.

Rock Island and Wholesale, Illinois corporations which also have their principal offices in that state, instituted this action in the United States District Court for the Northern District of Iowa. Named as defendants were Hedges-Gough, an Iowa corporation having its principal office in that state, and certain individuals, all citizens of Iowa, who were alleged to be officers and directors of Hedges-Gough.

Counts 1 and 2 of the original complaint, in identical language, averred that the defendants were indebted to plaintiff Rock Island in the amount of $12,367.12 (Count 1) and to plaintiff Wholesale in the amount of.$14,834.91 (Count 2) 'on account of goods sold and delivered'. The complaint did not state whether the goods were sold and delivered either to the defendant corporation, the individual defendants, or to both. Upon motions of the individual defendants, the Court directed plaintiffs to allege to whom the goods were sold and delivered. Thereafter, plaintiffs amended their complaint alleging that the goods were sold and delivered either to the individual defendants as partners of Hedges-Gough Lumber Company, a co-partnership, or to...

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