Armstrong v. Armstrong

196 Iowa 947
CourtSupreme Court of Iowa
DecidedApril 3, 1923
StatusPublished
Cited by4 cases

This text of 196 Iowa 947 (Armstrong v. Armstrong) 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
Armstrong v. Armstrong, 196 Iowa 947 (iowa 1923).

Opinion

Stevens, J.-

l. garnishment: ^•^conting’ent «ability. I. This is an appeal by John W. Shunick, garnishee, from a judgment entered against him in the superior court of the city of Shenandoah, on March 21, 1922, as the supposed debtor of Jerome B. Armstrong, Sr., the principal defendant in an action brought in said court against him by Florence E. Armstrong, administratrix of the estate of Jerome B. Armstrong, Jr., deceased', for an accounting of partnership assets.

The action was commenced April 7, 1919, and notice of garnishment was served upon Shunick on the same day. The material facts are as follows: A written contract, signed by their respective agents, was entered into on April 1, 1919, by Armstrong and Shunick, by which the former agreed to convey to the latter a farm located in Fremont County, of uncertain acreage, for a consideration of $135 per acre, the exact acreage to be ascertained by survey and measurement, at Armstrong’s expense. The provision of the contract for the payment of the consideration was as follows:

“Two thousand dollars cash in hand, the receipt of which is hereby acknowledged. Grantee to assume a mortgage for $8,000.00 and interest thereon from date of delivery. Balance to be paid on delivery of deed and merchantable abstract of title.”

The contract further provided that Shunick should have possession immediately upon its execution. The principal defendant was never served with an original notice or with notice [949]*949of the garnishment, but on April 14, 1919, a written stipulation, signed by himself and Florence E. Armstrong, administratrix, plaintiff, agreeing upon a settlement of the principal action, was filed in the office of the clerk of the superior court. By the terms of the stipulation, the defendant agreed to pay plaintiff $3,000, as follows: $800 upon the signing of the stipulation, and the balance, of $2,200, by assignment and order upon Shunick for that amount, to 'be paid out of the purchase price of the farm. The stipulation further provided that, if the said $2,200 should not be paid within 60 days, judgment might be entered against the defendant therefor. The defendant did not execute' the assignment or written order upon Shunick to the plaintiff, and judgment was accordingly entered against him on August 22, 1919, for the amount then due, together with costs.

Some time later, the date not shown, the defendant ten-, dered to Shunick a deed and abstract showing a satisfactory title, but refused to deliver the same to him until the full balance of the consideration was paid. The transaction was consummated upon that basis. .Shunick, as garnishee, on February 23, 1920, filed answer in the superior court, stating that he was in no wise indebted to the defendant; that he did not have in his possession, or under his control, any property of the defendant’s, and knew of no debts owed to him. On June 6, 1921, an amendment to his original answer, setting up the contract out of which the supposed indebtedness arose, together with the facts, substantially as stated above, was filed in the superior court. The answers of the garnishee were not controverted. On March 21, 1922, the court, upon motion of the plaintiff, entered judgment against the garnishee for the full amount of the judgment previously .entered against the original defendant, with interest thereon up to that date.

The briefs of counsel are elaborate, and cover every question that could arise upon the record; but, in view of the conclusion reached on the principal contention of appellant, that, as the garnishee was held, under the contract, only to a contingent liability, the debt was not subject to garnishment, we shall not consider the other propositions argued. It is elementary that the right of the plaintiff, as against the garnishee, in the absence of fraud, can rise no higher than the right of the [950]*950principal defendant (Streeter v. Gleason, 120 Iowa 703; Smith Lbr. Co. v. Scott County G. R. & F. Co., 149 Iowa 272; Des Moines C. M. Co. v. Cooper, 93 Iowa 654; Smith T. & Co. v. Clarke & Henley, 9 Iowa 241, 244; Parker v. Carry, 121 Iowa 388; Munson v. Mabon, 135 Iowa 335; What Cheer Sav. Bank v. Mowery, 149 Iowa 114); that only a debt already due, or for the maturity of which time alone is necessary, is subject to garnishment (Ober v. Seegmiller, 180 Iowa 462; Briggs v. McEwen, 77 Iowa 303; Streeter v. Gleason, supra; Caldwell v. Stewart, 30 Iowa 379); that the liability of the garnishee must be determined as of the date of the garnishment (Code Section 3935; Smith Lbr. Co. v. Scott County G. R. & F. Co., supra; Williams Bros. v. Young, 46 Iowa 140; Huntington v. Risdon, 43 Iowa 517); and that, in order to hold a garnishee upon his answers, an indebtedness must be clearly admitted or shown thereby (Streeter v. Gleason, supra; Hibbard, S. B. & Co. v. Everett, 65 Iowa 372; Morse v. Marshall; 22 Iowa 290).

2. gaknishmunt: feet^rantiií" /ent liability. If the amended answer of the garnishee is equivalent to an admission of an absolute indebtedness to the principal defendant, judgment was properly entered thereon; otherwise not. If the debt was contingent, it must be (a) because the consideration was not to be paid until the number of acres in the tract was ascertained, and (b) because it was to be paid only upon the delivery by Armstrong to Shunick of a warranty deed conveying the farm to him.free and clear of incumbrances, except those assumed by the contract, together with an abstract showing a good, merchantable title. The contract provided for the survey and measurement of the farm at Armstrong’s expense, but did not require that it be done by him. The contingency as to the number of acres affected only the amount of the consideration, and did not inhere in the obligation itself; and the fact.that the full consideration could not be computed until the defendant's acreage was ascertained affected only the maturity of the obligation. The measurement could as well be made by the purchaser as by the seller. The contract contemplated that payment by the purchaser and the delivery of the deed and abstract by the seller should be concurrent acts. Armstrong could not, at the time the notice of garnishment was served upon Shunick, have main[951]*951tained an action against him for the specific performance of the contract, even if the acreage were known. Shnniek was not liable to him on the contract for the balance of the purchase price until he tendered a deed in full compliance therewith. This he might or might not do. It might happen that he would be unable to convey the title as agreed. If he failed to perform his part of the contract, Shunick would not be liable to him for the balance of the purchase price, and could recover the amount already paid. Compliance with the terms of the contract by Armstrong was contingent upon his willingness and ability to comply. This contingency inhered in Shunick’s obligation. The liability of Shunick for the payment of the balance of the purchase price was contingent upon the performance by Armstrong of essential acts in the future. If they were never performed, no debt was created. The indebtedness was, therefore, not absolute and unconditional, but contingent, and, under all the authorities, not subject to garnishment.

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