Lange v. Johnson
| Decision Date | 09 February 1973 |
| Docket Number | No. 43259,43259 |
| Parties | Ernie LANGE and Earl Lange, d.b.a. Lange Brothers, Appellants, v. Earl JOHNSON, d.b.a. Lafayette Farm Service, et al., Defendants, Walter P. Feehan, Receiver of Lafayette Farm Service, Inc., Respondent. |
| Court | Minnesota Supreme Court |
Syllabus by the Court
Where counsel mistakenly brings suit against an individual doing business as a legal entity instead of properly against a corporation, but the one served is the president and sole stockholder of the corporation and he admits service and that the debt is owed by the corporation, and answer is thereafter interposed consenting to judgment, the judgment secured against the corporation is not void for want of proper service and is a valid judgment when entered even though the answer is not on file at that moment.
Gavin & Gavin, Glencoe, Nord, Webster & Brennan, St. Paul, for appellants.
A. R. Mueller and Everett L. Young, Gislason, Alsop, Dosland & Hunter, William C. Zucco and Robert M. Halverson, New Ulm, for respondent.
Heard before KNUTSON, C.J., and OTIS, ROGOSHESKE, and SCHULTZ, JJ.
This is an appeal from an order of the District Court of Nicollet County vacating a judgment. The plaintiffs had applied to the court ex parte for amendment of a judgment nunc pro tunc as of February 2 1970, in Nicollet County. The judgment had been docketed only against Earl Johnson, d.b.a. Lafayette Farm Service, although it was originally entered on September 5, 1969, in McLeod County against Lafayette Farm Service, Inc., as well as Earl Johnson. The court refused plaintiffs' application for amendment of the judgment to be against Lafayette Farm Service, Inc., and ordered a hearing. At the hearing held September 28, 1970, the court granted the motion of the receiver for Lafayette Farm Service, Inc., to vacate the judgment. The court further required plaintiffs to pay to the receiver money previously collected under an execution and levy on the judgment in Scott County.
The issues raised on appeal are (1) whether a judgment against a corporate defendant is void for want of jurisdiction where the corporation was not named by the plaintiffs in the original summons and complaint but where the summons and complaint were served upon an officer of the corporation and where the corporation did in fact answer the complaint, and (2) whether an answer by the corporate defendant consenting to entry of judgment against it, which answer was not on file at the time of entry of judgment, is sufficient basis for the entry of a consent judgment by the clerk of court.
The plaintiffs farmed together in McLeod County and did business with defendant Earl Johnson, who was president and sole shareholder of Lafayette Farm Service, Inc. The Langes, through Johnson as a broker, delivered grain worth $15,310 to Cargill, Inc., in August 1969. Soon thereafter, plaintiffs apparently discovered that Lafayette Farm Service, Inc., was in financial difficulties. Plaintiffs contacted counsel, who mistakenly began an action in McLeod County against Earl Johnson, doing business as Lafayette Farm Service, rather than against Lafayette Farm Service, Inc. The summons and complaint were served on Johnson by substituted service on August 27, 1969, and garnishment summons and writ of attachment were issued the following day to be served on Cargill, Inc. Defendant Earl Johnson instructed his attorney to admit liability on behalf of the corporation and to consent to entry of judgment against the corporation. On or about September 4, 1969, the attorney for defendant corporation served on plaintiffs' counsel the corporation's answer, showing both Johnson and the corporation as defendants, admitting liability on behalf of the corporation, and asking that plaintiffs have judgment as demanded. On September 5, 1969, plaintiffs' counsel secured a judgment in McLeod County. Defendant corporation's answer was not on file in the courthouse when judgment was entered. Plaintiffs' counsel later altered the original summons and complaint by typing in the name of the corporation as a defendant. Subsequently, the corporation's answer was filed with the court. Plaintiffs docketed a transcript of the judgment in Scott County, and on September 19, 1969, the Scott County sheriff collected two checks from Cargill under a writ of execution. The checks totaled $8,069.26, and plaintiffs realized the sum of $7,899.87, leaving a balance of $7,469.29 due.
On October 23, 1969, a receiver was appointed for the insolvent Lafayette Farm Service, Inc. In February 1970, a Nicollet County clerk docketed a transcript of the judgment against Johnson but refused to docket a transcript of judgment against the corporation. On August 25, 1970, plaintiffs applied ex parte for amendment of the judgment nunc pro tunc to name the corporation as defendant. The court refused and ordered a hearing held on September 28, 1970, at which time a motion of the receiver dated September 15, 1970, for vacation of the original judgment was also heard. On May 16, 1971, the court ordered the judgment vacated and further ordered plaintiffs to pay over to the receiver the money obtained under the execution in Scott County.
The court in its order of May 16, 1971, subsequently modified by order dated May 27, 1971, found the judgment to be irregular in many respects and void for want of jurisdiction as to defendant corporation on the ground that defendant corporation had not been properly served.
We first consider whether the judgment was void for want of jurisdiction. The motion of the receiver was brought under Rule 60.02, Rules of Civil Procedure, the provisions of which will relieve a party or his legal representative from a final judgment where the judgment is either voidable or void. 1
In setting aside a void judgment under Rule 60.02(4), the court engages in a process totally different from that involved in the other Rule 60.02 causes. No question of discretion is involved. Difficult decisions on questions of law often must be made to determine whether or not a judgment is void or voidable. If a judgment is void, it must be set aside. It has no force and effect. A void judgment is one where the court lacks jurisdiction over the subject matter or over the parties. There is no time limit set forth in Rule 60.02 for commencing proceedings to set aside a void judgment.
A valid judgment cannot be rendered against a party without due service of process upon him. A judgment entered without due service of process is absolutely void, not merely irregular or erroneous. Beede v. Nides Finance Corp., 209 Minn. 354, 296 N.W. 413 (1941). Generally, an erroneous judgment or one founded on some irregularity is voidable.
A summons is intended to impart notice of a claim. Thus, even in the face of a misnomer, if service of a summons and complaint results in an intended defendant being fully informed as to the circumstances of the action, the court has acquired sufficient jurisdiction over that defendant. Nelson v. Glenwood Hills Hospitals, Inc., 240 Minn. 505, 62 N.W.2d 73 (1953).
In Nelson v. Glenwood Hills Hospitals, Inc. Supra, plaintiff had named Glenwood Hills Hospitals, Inc., as defendant rather than Homewood Hospital, Inc., which was the proper defendant. The complaint wrongfully stated that Homewood Hospital, Inc., was owned and operated by Glenwood Hills Hospitals, Inc. The officer upon whom the summons and complaint were served was, however, an officer of both corporations, and the complaint had in fact stated a cause of action against Homewood Hospital, Inc. Accordingly, the court concluded that the notice to Homewood Hospital, Inc., was sufficient.
In Kerner v. Rackmill, 111 F.Supp. 150 (M.D.Pa.1953), the court refused to allow amendment of a complaint to name a corporation as an additional defendant after the...
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...validated by the passage of time. See Minn. R. Civ. P. 12.08(c); Peterson v. Eishen, 512 N.W.2d 338, 340 (Minn.1994); Lange v. Johnson, 295 Minn. 320, 204 N.W.2d 205 (1973); Mesenbourg v. Mesenbourg, 538 N.W.2d 489 The Bodes argued successfully to the district court that DNR's untimeliness ......
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