Arakawa v. Co-Operative Farmers' Exchange

253 P. 830, 81 Colo. 92, 1927 Colo. LEXIS 311
CourtSupreme Court of Colorado
DecidedFebruary 28, 1927
DocketNo. 11,495.
StatusPublished
Cited by2 cases

This text of 253 P. 830 (Arakawa v. Co-Operative Farmers' Exchange) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arakawa v. Co-Operative Farmers' Exchange, 253 P. 830, 81 Colo. 92, 1927 Colo. LEXIS 311 (Colo. 1927).

Opinion

Mr. Justice Campbell

delivered the opinion of the court.

This action by the plaintiffs in error, as plaintiffs below, holders of life membership in the defendant Cooperative Farmers’ Exchange, a corporation, is for an alleged wrong sustained by them at its hands, in that the exchange has failed to pay to them the full proceeds of a sale of their cabbage to which, under a co-operative marketing contract of the parties, they were entitled; such products having been sold by the defendant at a much greater price than the amount it accounted for as gross proceeds. The defendant corporation first filed its motion to change the place of trial or to dismiss the action. The court dismissed the action and thereafter, on the application of the plaintiffs, set aside its dismissal judgment, apparently because the real defect in the complaint was not the subject of a motion, but of a demurrer or answer. Thereafter the defendant company filed a demurrer to the complaint, only the first three grounds of which are material on this review. (1) The court has no jurisdiction of the subject matter of the action, jurisdiction being in the district court of Weld county, Colorado; (2) there is another and prior action pending in the district court of Weld county between the same parties for the same cause, $iat is, upon the same subject matter relating to the same questions and based upon *94 the same correlative and reciprocal rights, obligations and duties between the defendant exchange and the plaintiffs in connection with their membership in,. and their several contracts with, the exchange, and the legal effect and consequences thereof; (3) the object and purpose of the action is to secure relief from an injunction order of the district court of Weld county now in full force and effect made and entered by that court in the cause there pending and undisposed of. The court sustained the demurrer and in its ruling said that it considered only these three grounds, disregarding several other grounds set up in the demurrer. Plaintiffs are here with their writ of error to the final judgment dismissing the complaint.

The object of the action now under review is fairly stated in the prayer of the complaint which is that an accounting be had betAveen the plaintiffs and their associates, and the defendant éxchange, of the receipts, disbursements and business of the exchange during the years 1924 and 1925, and that a receiver be appointed to take charge of the company’s books and business pending the accounting, and that if it should appear therefrom that the exchange has converted to its own use the money of plaintiffs and their associates, that a judgment be rendered against the exchange therefor. The complaint charges generally that the defendant exchange is a corporation organized under the Co-Operative Marketing Act, that the plaintiffs and their associates hold life memberships therein, that, as the result of a marketing contract between the parties, so providing, plaintiffs were obliged to deliver to the exchange for sale and for an accounting of the net proceeds of sale of the cabbage which they produced and delivered during the life of the contract; that certain controversies between the parties arose; that plaintiffs and associates assumed to withdraw from membership in, and to sever their connection Avith, the exchange, whereupon the exchange brought *95 a suit in equity in the district court of Weld county against them to compel them to carry out their contract and obtained á temporary writ of injunction commanding the plaintiffs here, defendants there, to deliver the cabbage, and although plaintiffs did not then, and do not now, concede the justice of the court’s order, nevertheless, to save costs and for other reasons, they proceeded to comply with the mandatory order and delivered to the defendant exchange for sale the cabbage which they had grown and the same was sold by the defendant exchange, but it failed and neglected to pay and turn over to the plaintiffs the net proceeds thereof. These facts, as to the Weld county suit, appear in the complaint. Although the action in the Weld county district court is still pending and undisposed of, the plaintiffs brought their action now under review in the district court of Adams county against the exchange alleging general mismanagement and dishonesty on its part in conducting its business and in the sale and disposition of the cabbage as above stated. The complaint further alleges specifically that it seeks an accounting between the parties of the business of the exchange with the plaintiffs, asks for a receiver pending the action and for a money judgment for whatever balance might be due to them as already indicated.

■ The defendant in error exchange has not entered its appearance in this court and we are without the benefit of assistance from its counsel but we think the judgment of the trial court was right as we proceed to show. Learned counsel for plaintiffs in error say that the subject matter of the suit in the Weld county district court, in which the exchange is the plaintiff, is the delict of the defendants there and others similarly situated, plaintiffs here, in failing to comply with their contracts and that the relief sought is not only injunction to restrain, but specific performance of the co-operative marketing contract. They further say that the subject matter of the case in the district court of Adams county now under *96 review is the delict of the defendant in this case, the exchange, plaintiff in the Weld county case, and the relief sought is to compel an accounting and to secure a money judgment on such sum as shall be found due them, as net sale proceeds, and for a receiver pending the action. Their main proposition, urged with ability and plausibility, is that the plaintiffs in error here, plaintiffs below, and defendants in the Weld county" action, were not required in the Weld county action, although they might have done so, to ask for any affirmative relief to which they might have been entitled, but might well content themselves with purely defensive matter to the complaint in that action; and in a subsequent action, for the same wrongs, and between the same parties, such as the present one, they may ask for and obtain such affirmative relief by way -of accounting and a money judgment for failure of the defendant exchange to pay for'the net proceeds of the cabbage sold. They rely upon Williams v. County Commissioners, 48 Colo. 541, 543, 111 Pac. 71; Mitchell v. Pearson, 34 Colo. 278, 82 Pac. 446; Colburn v. Dortic, 49 Colo. 90, 111 Pac. 837; and Ayres v. Bensley, 32 Cal. 620. The Colorado cases are not in point. In all of them the parties to the two actions were not the same, and the subject matter of the cross suits was distinct and separate and not identical. In the Ayres case from California the court made the general announcement, which is not disputed, that the defense of the pend-ency of another action is not available unless, among other things, the causes of action and the plaintiffs, at least, in both actions are the same, and the court also held with respect to affirmative relief as already indicated. The Supreme Court of California, in Coubrough v. Adams, 70 Cal. 374, 11 Pac.

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Bluebook (online)
253 P. 830, 81 Colo. 92, 1927 Colo. LEXIS 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arakawa-v-co-operative-farmers-exchange-colo-1927.