Anderson v. Wilson

120 N.W. 677, 142 Iowa 158
CourtSupreme Court of Iowa
DecidedApril 8, 1909
StatusPublished
Cited by8 cases

This text of 120 N.W. 677 (Anderson v. Wilson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Wilson, 120 N.W. 677, 142 Iowa 158 (iowa 1909).

Opinion

Evans, C. J.

1. Creditors suits: sub-property in name of evidence The plaintiffs are alleged judgment creditors of the defendant- George W. Wilson, who has no property in his own name out of which a judgment can be collected. Plaintiffs charge that a large . » „ . n . amount oi property appearing on record m the name of B. M. I. Wilson is, in fact, the ' 7. property of George W. Wilson. They also charge that there is no such person as B. M. I. Wilson, and that the defendant George W. Wilson has used the name for many years as a mere cover to protect his property against his creditors.. It appears that George W. Wilson has done much business for the last fifteen years or more in the name of B. M. I. Wilson under a purported power of attorney which appears of record. The existence of such a person has heretofore been, challenged by creditors of George W. Wilson, and he [160]*160lias been examined in supplemental proceedings as to the residence and postoffice address of such person. In pursuance of the information gained in suck examination, search has been made for B. M. I. AVilson, but without success. George AV. was examined on the question on the trial of this case, and stated that he was somewhere in Cuba. While there appears of record a power of attorney filed and recorded many years ago, George AV. has never been able to produce the original, nor does he seem to be able to produce any letters from B. AI. I. AVilson, nor does there appear to he any one among his associates who ever saw him. lie has been made a party defendant in this case, and the defendant George AV. Wilson appears as attorney for him. The trial court made a finding that there was no such person. Appellant contends that such finding is not warranted by the evidence. There can be no absolute certainty that the trial court was right in its finding, but we can not avoid reaching the same conclusion upon the evidence. If this is a wrong conclusion, it was in the power of B. AL I. Wilson to produce the best evidence on the subject by producing himself in person before the court. His existence has been long enough challenged, and efforts to locate him have been sufficiently diligent to warrant an exhibit of the person, and to warrant the court in indulging extreme skepticism until such exhibit be made. AVe approve of the finding of facts made by the court.

2. Partnership: judgment against: liability of partners. II. The judgment of plaintiff A.nderson does not purport to be a judgment against the defendant George AV. Wilson, but against George AV. Wilson & Go. George W. AVilson & Co. was a partnership of which George AV. AVilson was a member. The t .. _ _ . , nudgment was rendered upon a note signed & # 1 . ° by George AV. AVilson & Co. When suit was brought, no attempt was made to make any member of the firm a party defendant, but judgment was asked [161]*161only against the firm as such. It is claimed that notice of suit against the firm was served upon George W. Wilson, and that the judgment in question can be enforced for that reason against his property under the provisions of section 3468 of the Code. Such section is as follows: “Actions may be brought by or against a partnership as such, or against all or either of the individual members thereof, or against it and all or any of the members thereof; and a judgment against the firm as such may be enforced against the partnership property or that of such members as have appeared or been served with notice. A new action may be brought against the members not made parties on the original cause of action.” It 'is apparent that the language of this section gives some color to the claim of appellee. The contention of this appellee is that a judgment against the firm as such is by force of this statute also a judgment against such member of the firm upon whom notice of the suit was served. The contention of the defendant is that a judgment against the firm as such is a judgment against the firm and nothing more,. and that no judgment can be entered against an individual partner, except as he be made a party defendant and served with notice accordingly. This question has not heretofore been passed on by this court. Under the Code of 1851, it was held that execution under a judgment against the firm as such could not be levied on the property of a member of the firm until scire facias proceedings be first had and judgment rendered thereon. Davis v. Buchanan, 12 Iowa, 575. Section 1691 of the Code of 1851 was as follows: “If sued in their partnership name their individual property may be made liable to any judgment against them unless sufficient cause be shown to the contrary.” This was the statute construed in the Davis case. At the time of such decision, however, section 2785 of the Eevision of 1860 had been enacted, which provided as follows: “If sued in their partnership name their in[162]*162dividual property may on scire facias be made liable to any judgment against them unless sufficient cause be shown to the contrary.” In construing section 1691 of the Code of 1851, the court followed the construction pointed out in the then recently enacted Revision of 1860 (section 2785). Scire facias was simply a method of procedure which resulted in the entry of a formal judgment against the individual partner before execution was permitted against his property. In the Code of 1873 all reference to scire facias proceedings was omitted. It has been held that a judgment against a partnership as such is not a lien on land of a partner. Stadler v. Allen, 44 Iowa, 198; Lathrop v. Brown, 23 Iowa, 40. It has also been held that a judgment against an individual partner on a partnership debt confers no jurisdiction over the firm as such. Weaver v. Carpenter, 42 Iowa, 343. It has been held, also, that a judgment may be obtained against a partnership as such, even though the court has no jurisdiction over individual members, Ebersole v. Ware, 59 Iowa, 663; Sketchley v. Smith, 78 Iowa, 542; also that a partnership may have a residence entirely distinct from that of its members, Ruthven v. Beckwith, 84 Iowa, 715. The necessary effect of the foregoing decisions is that a judgment against the firm as such creates no presumption of jurisdiction in the court to enter judgment against an individual member of the firm; and this is especially so if the judgment was entered by a justicé of the peace, as in the case under consideration, whose jurisdiction is forbidden over actual residents of other counties. Section 2563 of the Code of 1873 was more favorable in its language to the construction now contended for by appellee. The change of language made in the present Code is away from that construction, rather than confirmatory of it. The last sentence of section 3468 provides that “a new action may be brought against the members not made parties on the original cause of action.” That sentence seems [163]*163to assume that a judgment entered against the firm is not a judgment against any member “not made a party.” If this is a correct view, then the clause in the preceding sentence, namely, “such members as have appeared or been served with notice,” must mean such members as have appeared or been served with notice as parties defendant.

In construing this section, it must be borne in mind that at common law the liability of members of a partnership was joint, and not several, and that all the known partners were necessary parties defendant, and that no judgment could be entered against one until it was entered against all.

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Bluebook (online)
120 N.W. 677, 142 Iowa 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-wilson-iowa-1909.