Barry v. State Surety Company

154 N.W.2d 97, 261 Iowa 222, 1967 Iowa Sup. LEXIS 881
CourtSupreme Court of Iowa
DecidedNovember 14, 1967
Docket52610
StatusPublished
Cited by13 cases

This text of 154 N.W.2d 97 (Barry v. State Surety Company) 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
Barry v. State Surety Company, 154 N.W.2d 97, 261 Iowa 222, 1967 Iowa Sup. LEXIS 881 (iowa 1967).

Opinion

LeGrand, J.

On May 28, 1965, Miller-Tomlinson Implement Company started a replevin action against these plaintiffs to secure possession of certain property, including a 1955 1-300 International Harvester tractor. The tractor is the only property involved in the present litigation.

Desiring to obtain possession immediately, Miller-Tomlin-son Implement Company filed its bond, as required by section 643.5, Code, 1962. This action is against appellant, as surety on that bond, for damages resulting from the wrongful seizure and detention of the tractor.

This is' the second suit started by plaintiffs to collect damages. The first was begun on July 7, 1965, and was dismissed by the trial court as. premature- because the replevin action had not yet been tried and the right to claim damages was dependent upon the result of that action.

Later a judgment was entered determining that the replevin was wrongful and ordering the tractor returned to these plaintiffs. A notice of appeal from that judgment was filed, but the appeal was not pursued further.

*225 Plaintiffs then started this action against defendant, asking damages for depreciation in the value of the tractor and for loss of use thereof during the period it was wrongfully-withheld. After trial to the court, plaintiffs were awarded damages for loss of use at a rental rate of $2.00 per hour, limited by the actual value of the tractor, which the court placed at $1500. Judgment was for that amount although the court found it to be less than the actual loss of use.

In our consideration of this matter we treat defendant as if it were the obligor on the bond, since its legal position here is identical with that of its principal, Miller-Tomlinson Implement Company. As far back as Hershler v. Reynolds, 22 Iowa 152, 155, we held the surety on a replevin bond was considered as being in court in a suit against the principal and was bound by any judgment on matters covered by the bond. This is still the law, and defendant cannot impeach the replevin judgment here. 77 C.J.S.', Replevin, section 320, page 230.

Defendant has appealed from the judgment and from orders overruling its motions for judgment - notwithstanding the verdict and for a new trial. Although not presented exactly as defendant assigned them, nor in the same order, the main errors presented for our consideration are: (1) the exclusion of evidence challenging plaintiffs’ ownership of the tractor; (2) the refusal to hold that this suit was barred by dismissal of the previous action for damages; (3) the refusal to hold that a surety could in no event be liable for damages because section 643.20, Code, 1962, limits such liability to a judgment for the value of the property; and (4) the allowance of damages for loss of use.

I. Defendant contends there was error in excluding evidence offered concerning ownership of the tractor. We find no place in the record where defendant offered such evidence. The evidence offered and excluded was evidence concerning the defendant’s right of possession to, not ownership of, the tractor. Replevin is principally a possessory action. Its very purpose is to determine who should have possession. Judgment in the replevin action established that right to be in plaintiffs. Defendant is bound by that determination. This question having once been litigated, it was at the time of this *226 trial res judicata. The trial court was correct in excluding this evidence. Dawson v. Laufersweiler, 242 Iowa 757, 758, 48 N.W.2d 228, 229; In re Estate of Ramsay, 240 Iowa 50, 59, 60, 35 N.W.2d 651, 656; Jordan v. Stuart Creamery, Inc., 258 Iowa 1, 6, 137 N.W.2d 259, 261.

II. Defendant next asserts that plaintiffs were barred from bringing this action for damages because their original suit seeking similar relief had been dismissed by order of court as premature. Defendant claims this dismissal was a final adjudication of plaintiffs’ right to claim damages, which forecloses the bringing of the present action. Shortly after the replevin suit was started, but before it was tried, plaintiffs started an action asking damages for wrongful replevin. Upon motion, this action was dismissed as premature. The dismissal was not intended to be an adjudication on the merits. The reason given for the dismissal was that no action for damages would lie until the question of right of possession had been first determined. If the replevin were held to be rightful, then there could be no claim for damages. This was one of the grounds upon which the motion was made and this was the ground upon which the dismissal was based. Under such circumstances the claim for damages was not res judicata. Although the order of dismissal itself does not so provide, the record contains a statement of the trial court made during trial that the dismissal of the earlier suit was not a dismissal on the merits.

Furthermore the doctrine of res judicata is applicable only to those issues which were, or could have been, presented to and determined by the court in the earlier suit. Jordan v. Stuart Creamery, Inc., supra. Here plaintiffs seek relief for the state of disrepair in which the tractor was returned. This matter was unknown to plaintiffs when the first action for damages was brought. It could not, therefore, have been litigated and decided there. This is also true of part of plaintiffs’ claim for loss of use, which accrued subsequent to the original action for damages.

We agree with the trial court that the dismissal in question does not operate as a bar to this suit.

*227 III. Defendant next asserts that in no event may a judgment for damages be awarded against it since its liability on the bond is limited to assuring payment of a judgment for the value of the property. Defendant relies on section 643.20, Code, 1962, which provides: “When property for which a bond has been given as hereinbefore provided is not forthcoming to answer the judgment, and the party entitled thereto so elects, a judgment may be entered against the principal and sureties in the bond for its value.”

This section merely provides one remedy available against a surety. It is not exclusive of other remedies. In any event that section has no application here since plaintiffs did not make the election provided for therein. Defendant entirely overlooks section 643.5, Code, 1962, which requires the principal to pay all costs and damages that may be adjudged against him. It is the performance of this obligation which the surety guarantees. Defendant interprets this to mean only such costs and damages as are allowed in the replevin action itself, but we hold it to mean any costs and damages assessed against the principal, whether in the main action or in a separate action, when a separate action is permissible. 77 C.J.S., Replevin, section 320, page 231; Hall v. Smith, 10 Iowa 45; Annotations, 85 A.L.R. 644.

IV.

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Bluebook (online)
154 N.W.2d 97, 261 Iowa 222, 1967 Iowa Sup. LEXIS 881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barry-v-state-surety-company-iowa-1967.