Barston v. Mingo Drainage Dist.

264 F. 224, 1920 U.S. Dist. LEXIS 1181
CourtDistrict Court, E.D. Missouri
DecidedMarch 25, 1920
DocketNo. 155
StatusPublished
Cited by6 cases

This text of 264 F. 224 (Barston v. Mingo Drainage Dist.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barston v. Mingo Drainage Dist., 264 F. 224, 1920 U.S. Dist. LEXIS 1181 (E.D. Mo. 1920).

Opinion

FARIS, District Judge.

Plaintiffs sue in equity to enjoin defendants, New Amsterdam Casualty Company (hereinafter called simply Casualty Company), and some 40 other persons and corporations, from bringing actions in the state courts, against plaintiffs and against the Casualty Company upon a certain bond, which the Casualty Company executed to defendant Mingo Drainage District (hereinafter called simply Drainage District),, to secure the faithful performance of a contract of plaintiffs with the Drainage District for the doing of certain swamp reclamation work. In order to save and hold harmless the Casualty Company upon the bond which the latter gave to the Drainage District, plaintiffs made and executed a contract of indemnity to the Casualty Company.

Plaintiffs having, for reasons not considered pertinent, failed to fulfill their reclariiation contract with the Drainage District, this . contract was on the 5th day of September, 1919, declared forfeited and at an end by the Drainage District; thus, prima facie at least, creating an obligation in favor of the Drainage District and against the Casualty Company on the bond of the latter. Of course, I do not rule this point either way. In addition to this demand in favor of the Drainage District, plaintiffs, as appears from their petition, are indebted to the other 40 or more defendants herein in divers sums and on divers accounts, for the most part, however, for materials, supplies, and labor used in digging ditches and constructing levees for the Drainage District.

[225]*225Against suits to collect these divers damages and demands, plaintiffs invoke the equitable doctrine of injunction against the bringing of a multiplicity of suits, and hereby they seek to compel all of their creditors to intervene and have judgments herein in their favor, or, as to certain of the demands, to have it decreed in this court that no cause of action exists either against the plaintiffs or against the Casualty Company.

Upon the filing of plaintiff’s petition, a temporary restraining order was issued herein, together with a citation to defendants to show cause why a temporary injunction should not be granted as prayed. When this matter came on to he heard upon the citation to defendants to show cause, some of the defendants entered their appearances, some 30 thereof were found and duly served, and some 10 were returned not found in the District.

The Drainagg District, which is conceded to be the largest alleged creditor, appeared and moved to dismiss the plaintiffs’ bill for want of equity therein; others of defendants answered, denying the right of plaintiffs to an injunction upon the facts; while still others conceded this right and intervened, praying for an adjudication and a decree here for the several amounts due them.

Coming on to be heard upon the motion of the Drainage District to dismiss, plaintiffs contend that they are, upon the facts stated, entitled to a temporary injunction against the threatened institution of a multiplicity of suits. It may be conceded that upon the face of the petition a multiplicity or a multitude of suits against plaintiffs and the Casualty Company is threatened. The difficult question is whether the multiplicity of suits so threatened is such a multiplicity as is contemplated by the well-known and well-settled equity rule pursuant to which equity interposes. These numerous suits, it is averred, will be brought against plaintiffs and the defendant Casualty Company upon the theory that the latter, by executing its bond to the Drainage. District, became obligated to pay all of the debts and demands, of whatever sort, which might be incurred by plaintiffs in fulfilling their reclamation contract with the Drainage District. Upon the recovery against the Casualty Company (if it be liable, and upon this point likewise I do not rule) actions will lie in favor of the latter and against the plaintiffs upon the indemnity contract of plaintiffs with the Casualty Company.

No defense in favor of plaintiffs as against any of the defendants, except the Draiuagd District, is set up in the bill before me. These demands, I repeat, were incurred by plaintiffs in the prosecution of the reclamation contract, and are due to laborers, to merchants and dealers for supplies and materials furnished, and so it is difficult (short of a plea of payment, of which there is none) to infer any defense thereto. With reference to the demand of the Drainage District it is alleged that no action lies in favor of the District either against plaintiffs or against the Casualty Company. This is so, it is alleged, because under the contract the Drainage District retained 10 per cent, of all amounts earned by plaintiffs in the doing of the work actually performed by them, which 10 per cent., it is contended, constitutes [226]*226liquidated damages, and is the limit of the recovery to which the Drainage District is entitled as against either plaintiffs or the Casualty Company. I mention this as part of the facts in the case, but I do not consider it pertinent upon the motion to dismiss, and of course do not pass upon it here.

It is also averred, as upon the advice of counsel, that no liability exists upon the bond made by the Casualty Company to the Drainage District in favor of the creditors of plaintiffs other than the Drainage District. In other words, in favor of tiróse defendants whose demands accrued from their having furnished labor and materials and supplies to plaintiffs to enable them to prosecute the work.

Under these facts are plaintiffs entitled to enjoin defendants from bringing civil actions in the state courts for the amounts due them, and thus compel the several defendants to forego a trial in the state courts before a jury, and to intervene herein, upon the sole equitable ground that the facts stated constitute that multiplicity of suits which gives jurisdiction to a court of equity? I do not think so. I am forced to the view that the multiplicity of suits held in mind by the writers and courts as conferring jurisdiction in equity is an entirely different thing from the situation presented here.

Having made the Casualty Company a defendant, plaintiffs’ interests are adverse to it, and plaintiffs cannot here speak for it or bind it. Thomas v. Council Bluffs, etc., Co., 92 Fed. 422, 34 C. C. A. 428; Mechanics’ Ins. Co. v. Distilling Co., 173 Fed. 888, 97 C. C. A. 400, 32 L. R. A. (N. S.) 940. Clearly, if the case were one uncomplicated by the contract of indemnity, and by the bond of the Casualty Company for faithful performance of the reclamation work, the mere fact that plaintiffs are indebted to 35 or 40 different persons or corporations, upon 35 or 40 different accounts, would furnish to plaintiffs no ground of equity jurisdiction. If tire Casualty Company, as a defendant here, is in law and in fact liable to each one of its codefendants upon its bond to the Drainage District, and if each of these codefendants were threatening suit against the Casualty Company, this would furnish no ground for equity jurisdiction in favor of the plaintiffs; for, if all these several codefendants should sue the Casualty Company at law and obtain several judgments against it, it would not be necessary for the Casualty Company to sue plaintiffs upon the contract of indemnity held by it from plaintiffs as many times as the Casualty Company itself had been sued.

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Cite This Page — Counsel Stack

Bluebook (online)
264 F. 224, 1920 U.S. Dist. LEXIS 1181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barston-v-mingo-drainage-dist-moed-1920.