Ellison v. Baird

Decision Date20 July 1940
Docket Number6611
Citation293 N.W. 793,70 N.D. 226
CourtNorth Dakota Supreme Court

Syllabus by the Court.

1. A district court has inherent power to vacate, on motion, a judgment that has been rendered by such court against a party who has not been served with summons in the action. A motion to vacate such judgment is not controlled by Section 7483 C.L.1913.

2. An independent equitable action to set aside a judgment will not lie in a case where it appears from the facts alleged in the complaint that the plaintiff has an adequate remedy by motion in the action in which the judgment was rendered.

Appeal from District Court, Ward County; Gronna, Judge.

Action by J. N. Ellison and Otto Ellison against L. R. Baird, as receiver of the Scandinavian American Bank of Minot, N. D to cancel and set aside a personal money judgment. From an order sustaining defendant's demurrer to the complaint the plaintiffs appeal.

Order affirmed.

C. D. Aaker, for appellants.

Geo. A. McGee, for respondent.

Christianson, J. Nuessle, Ch. J., and Burr, Morris, and Burke, JJ., concur.

OPINION
CHRISTIANSON

This is an action to cancel and set aside a personal money judgment for $ 522.07 rendered by the district court of Burleigh county in this State, in favor of the defendant and against the plaintiffs. The defendant demurred to the complaint on the ground, among others, that it does not state facts sufficient to constitute a cause of action, in this, that the plaintiffs have a complete and adequate remedy by motion to vacate the judgment. The demurrer was sustained, and the plaintiffs have appealed.

The complaint alleges, in substance, that on November 29, 1924 the Scandinavian American Bank of Minot, a banking corporation organized under the laws of this State, was duly adjudged insolvent by the district court of Burleigh county, and that the said defendant, Baird, was duly appointed receiver of said bank, and ever since has been, and now is, such receiver; that at the time said bank was so adjudged to be insolvent, each of the plaintiffs was the owner of four shares of the capital stock of said bank, and that thereafter and during the year 1925 both plaintiffs paid in full the assessments levied against them as such stockholders, -- such assessments having been made pursuant to an order entered by the court in which the said action to liquidate said bank and the receivership proceeding ancillary thereto were pending; that notwithstanding said payment by said plaintiffs, the defendant on or about March 23, 1926, commenced an action in the district court of Burleigh county against the stockholders of said bank of record for their added stockholders' liability, and included the plaintiffs among the defendants in such action; "that the summons and complaint in said action was never served upon the plaintiffs herein," and that they "had no knowledge that any judgment was entered against them by reason of said alleged service of the summons and complaint until years afterwards." "That as a result of said alleged service there was entered in the district court of Burleigh county, North Dakota, on or about the 20th day of November, 1928, a judgment in favor of the defendant herein and against each of the plaintiffs herein in the sum" of $ 509.67 for...

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