Barnett v. Bodley

1959 OK 274, 348 P.2d 502, 1959 Okla. LEXIS 359
CourtSupreme Court of Oklahoma
DecidedDecember 29, 1959
Docket38416
StatusPublished
Cited by16 cases

This text of 1959 OK 274 (Barnett v. Bodley) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnett v. Bodley, 1959 OK 274, 348 P.2d 502, 1959 Okla. LEXIS 359 (Okla. 1959).

Opinion

IRWIN, Justice.

Plaintiffs commenced this action against defendant, Barnett Tank Line, Inc., a corporation, for the collection of two promissory notes and foreclosure of a chattel mortgage. Defendant filed its answer and cross petition and an application to make Manganese Industries, Inc., an additional party defendant. In this application defendant alleged the plaintiffs were the organizers and incorporators of Manganese Industries, Inc., and it was a necessary and indispensable party to the action.

Manganese Industries, Inc., filed its waiver of the issuance and service of summons, entered its general appearance, filed a general denial to the answer and cross petition of defendant, and prayed for judgment as set forth in plaintiffs’ petition.

Thereafter, E. I. Barnett and L. E. Barnett, upon application and order of the court, were authorized and did file their petition in intervention. Upon motion of plaintiffs and after hearing, the order authorizing the filing of the petition in intervention *504 was vacated and the petition in intervention was dismissed. L. E. Barnett and E. I. Barnett have perfected their appeal from this order.

Pleadings

Plaintiffs alleged the execution and delivery of two promissory notes and a chattel mortgage securing one of the notes to them by Barnett Tank Line, Inc.; that the notes were past due and owing and demand had been made and payment refused. They prayed for judgment on the two notes and foreclosure of the chattel mortgage.

Very briefly stated, the substance of the answer and cross petition of Barnett Tank Line, Inc., is as follows; The answer alleged E. I. Barnett and L. E. Barnett negotiated with the plaintiffs an agreement to engage in a business venture to prospect for, mine, develop and market manganese ore; that plaintiffs were to organize a corporation for this purpose and E. I. Barnett and L. E. Barnett were to have issued to them 40% of the capital stock; Manganese Industries, Inc., was organized and incorporated by plaintiffs; that plaintiffs did not desire to advance any money for the actual operation and Barnett Tank Line, Inc., its president being G. W. Barnett, who is the father of E. I. Barnett and L. E. Barnett, was prevailed upon to execute two notes, and a chattel mortgage, the subject of this action, one note for $6,000 which was secured by the chattel mortgage and one note for $5,000 in favor of plaintiffs to be used as security by plaintiffs to secure a loan; that there was an express representation by plaintiffs that there would be no liability and would be used as collateral only, and would be cancelled when they served their purpose; that the notes and mortgage were issued and delivered for accommodation only, and without consideration, and plaintiffs are not entitled to recover on them.

Barnett Tank Line, Inc., in its cross petition, alleged that it had furnished plaintiffs and Manganese Industries, Inc., an additional $3,000 in funds and personal property; that the action of plaintiffs had damaged its credit and reputation in the stim of $50,000, and prayed for judgment in the sum of $53,000.

The petition in intervention alleged, inter alia, the circumstances resulting in the execution of the $6,000 note by Barnett Tank Line, Inc., and in addition it alleged the acquisition of certain properties in which they had expended $4,400 in acquiring and developing, which should be applied as credit on the $6,000 note; that it was agreed to incorporate Manganese Industries, Inc., and intervenors were to reduce their previously arranged interest in the Company in consideration of the payment by plaintiffs of the $1,600 due on the note which was to be returned; that Manganese Industries, Inc., was organized and plaintiffs have refused to issue to intervenors the shares of stock they were entitled to which had an actual and saleable value of $36,000; that intervenors transferred to Manganese Industries, Inc., mineral interests valued in excess of $100,000, for the stock which was to be issued to them; that there is due in-tervenor E. I. Barnett for extraordinary expenditures made by him at the request of Manganese Industries, Inc., $2,846, and due to L. E. Barnett the sum of $4,000, for service rendered; that intervenors were summarily discharged, to the damages of the in-tervenors in the sum of $10,000 actual and $20,000 punitive.

Intervenors prayed that the $6;000 note be cancelled; that they have judgment against plaintiffs for $36,000, the value of the stock, $10,000 actual damages, $20,000 punitive damages and judgment against Manganese Industries, Inc., for $7,920 for extraordinary expenditures and service rendered.

Contentions

The intervenors contend that they are indispensable parties; that their claims arise out of the same subject matter that forms the basis of plaintiffs’ action and with a court of equity having assumed jurisdiction, the entire controversy will be disposed of and full relief administered to all the parties.

*505 The plaintiffs contend that intervenors are not indispensable parties; that the issues raised by the intervening petition are not germane to the issues between plaintiffs and defendant; and the right to intervene under such conditions rests in the discretion of the trial court.

Conclusions

Title 12 O.S.1951 §§ 231 and 236, providing that any party necessary to a determination and settlement of a question involved and any person claiming an interest in the subject matter may be made a party defendant were enacted for the purpose of securing a determination of a controversy between several persons. Title 12 O.S.1951 § 237, provides that any person having an interest in the subject matter of an action may intervene and in construing this section we have said the right to intervene may be divided into two classes. One in which the petitioner claims a lien or interest in the specific property involved and within the exclusive jurisdiction of the court in which the action is pending and his lien or interest therein can be established, preserved or enforced in no other way than by determination and action of that court. In this class the right to intervene is absolute. In the other class we find those claims which are not indispensable to the presentation or enforcement of the claim of the intervenors. In this class the permission to intervene is in the discretion of the court. If granted, petitioner’s rights may then be preserved. If denied, the claim may be asserted in a separate action. See Franklin v. Margay Oil Corporation, 194 Okl. 519, 153 P.2d 486.

The procedure followed herein, that is, filing the motion to vacate the order authorizing the filing of the petition of intervention and the motion to dismiss and the sustaining of such motions is correct, as we have repeatedly held that after' a petition in intervention has been filed it can be attacked by motion to dismiss or by demurrer. See Wasson v. Anglo-Texas Oil Co., 129 Okl. 222, 264 P. 164; Stebbens v. Longhoffer, 44 Okl. 84, 143 P. 671; Goodrich v. Williamson, 10 Okl. 588, 63 P. 974; Waggoner v. Buckles, 201 Okl. 392, 206 P.2d 216; and Tuttle v. Moore, 3 Ind. Terr. 712, 64 S.W. 585.

We will now determine the right of L. E. Barnett and E. I. Barnett to intervene in this action.

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Cite This Page — Counsel Stack

Bluebook (online)
1959 OK 274, 348 P.2d 502, 1959 Okla. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnett-v-bodley-okla-1959.