Beardsley v. Clark

294 N.W. 887, 229 Iowa 601
CourtSupreme Court of Iowa
DecidedDecember 10, 1940
DocketNo. 45193.
StatusPublished
Cited by6 cases

This text of 294 N.W. 887 (Beardsley v. Clark) 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
Beardsley v. Clark, 294 N.W. 887, 229 Iowa 601 (iowa 1940).

Opinion

Miller, J.

Plaintiff’s petition was filed October 5,1937, and asserted that on August 19, 1937, the defendants were engaged in the business of selling popcorn at wholesale under the trade name of Clark & Clark and on said day entered into a written contract for the sale of such business to - the plaintiff for the agreed, price of $1,500; the contract was obtained by the defendants through false and fraudulent representations; upon discovering the fraud, plaintiff elected to rescind the contract and gave notice to defendants accordingly; plaintiff offered to return to the defendants all the assets of the business described in the contract. Plaintiff prayed that the contract be declared rescinded, that plaintiff’s note and chattel mortgage for $545 be cancelled and declared void and that he have judgment against defendants for the balance of the purchase price. The answer of the defendants was in the nature of a general denial, including affirmative allegations for the purpose of controverting plaintiff’s charges of fraud. '

Trial was had. The evidence introduced at the trial is not set out in the abstract, but the record presented to us demonstrates that substantial evidence was introduced, the trial consuming several days time. After the cause was finally submitted, on December 16, 1937, the court entered a decree determining that the equities were with the plaintiff and that the contract of sale was procured by the defendants as the result of -fraud, false representations; the contract of sale was cancelled and rescinded; judgment was entered against the defendant Melvin D. Clark for the sum of $755, he was ordered to return to plaintiff his note and mortgage in the sum of $545 and, upon failure to return such note and mortgage, plaintiff was to have additional judgment in the sum of $545, or a total judgment of $1,300; plaintiff was ordered to return the property covered by the contract upon satisfaction of the judgment, but was given a lien thereon for the judgment, as provided by law.

On January 4, 1938, upon motion by plaintiff, a supplemental judgment was entered, by reason of failure of said de *603 fendant to return the note and chattel mortgage, for the additional sum of $545 pursuant to provision in the original decree.

The original decree was entered during the November 1937 term of court. The supplemental decree was entered at the January 1938 term of court. Neither defendant appealed from either decree but, thereafter, and at the March 1938 term of court, on March 22, 1938, the defendant Melvin D. Clark, through his father and next friend, defendant William J. Clark, filed a petition to vacate and modify the judgment, asserting in support thereof that he was a minor, 19 years of age; he would become 20 years of age on March 28, 1938; the judgment is voidable because during the trial no guardian ad litem was appointed and no defense made by a legal guardian as required by statute; said defendant had a good defense ‘ ‘ in that he is a minor which plaintiff knew at the time of the executing of the contract involved and that any obligations of this defendant were voidable and all liability on the minor’s part terminated and this defendant, the said minor, elects to disaffirm all contractual obligations thereunder”. Said defendant prayed that the judgment against him be vacated and a new trial granted. In answer to such petition to vacate the judgment, the plaintiff challenged the sufficiency of the petition and also asserted matters in the nature of waiver- and estoppel.

Hearing was had on the petition to vacate. Considerable testimony was taken and is set out in the abstract. We do not undertake to review it because the facts are undisputed on the issues, which determine this appeal. At the close of the testimony, the court entered an order on July 18, 1939, which dismissed the petition to vacate the judgment. On September 16, 1939, the defendant Melvin D. Clark appealed therefrom to this court.

In seeking a reversal of the order appealed from herein, appellant asserts that the judgment should have been vacated-because it appears that it was rendered against a minor, for whom no guardian had been appointed and no defense had been made by a guardian; a minor, after disaffirming a contract, is not required to restore any property which he does not have in his possession; no judgment can be rendered against a minor until after a defense by a guardian; the judgment so entered is void *604 and disregards the rule that a minor can disaffirm his contract and must return only such portion of the plaintiff’s property as he has in his possession at the time of disaffirmance. We find no merit in such contentions.

The entry of judgment against appellant while a minor, without a defense having been made by a guardian, did not render the judgment void but only voidable, and appellant was not entitled to have a new trial unless he showed that he had a good defense to the action. This is clearly demonstrated by the case of Reints v. Engle, 130 Iowa 726, 107 N. W. 947. In that case, a judgment had been recovered against a minor without a defense being made by a guardian. Thereafter a petition for new trial was filed, asserting this fact as ground therefor. The new trial was denied and on appeal the decision was affirmed, this court stating, 130 Iowa 726, 728, 107 N. W. 947, as follows:

‘ ‘ To justify the court in setting it aside, our statute requires, not only that the irregularity in the rendition of the judgment shall be made to appear, but it must also be found and adjudged that there is a valid defense to the action in which such judgment was rendered. The agreed statement of facts wholly fails in this latter respect. It shows simply that on the trial of the principal cause the defendant pleaded in denial of the plaintiff’s petition, hut states no fact on which to base a finding by the court that a defense in fact existed to the claim sued upon. It has often been held that a judgment which is merely voidable or irregular is not to be vacated until- after a hearing of the alleged defense on its merits. Code, sections 4049, 4096; Brewer v. Holborn, 34 Iowa 473; Russell v. Pottawattamie, 29 Iowa 256; Miracle v. Lancaster, 46 Iowa 179; Dryden v. Wyllis, 51 Iowa 534; Bank v. Dixon, 105 Iowa 148. There is no such showing here. The minority of the appellant was no defense to the claim for damages, and, while it is conceded that a denial to such claim was pleaded, there is, as already suggested, no allegation or proof tending to sustain the truth of the answer, or to indicate that justice required the reopening of the case for another trial. ’ ’

Pursuant to the foregoing, the appellant was required not only to show that he was a minor and that no defense was made in his behalf by a guardian, but also- that he had a good *605 defense to the action, before he would be entitled to a new trial. The principal defense asserted in this court is that the action is ex contractu, appellant had the right to disaffirm the contract upon reaching his majority pursuant to the provision of section 10493 of the Code, 1939, and need restore only such property received by virtue of the contract as remains in his hands at the time of disaffirmance. Wé find no merit in this contention.

The fatal defect in the argument of .appellant lies in the fact that the action involved herein was not ex contractu but ex delicto.

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Bluebook (online)
294 N.W. 887, 229 Iowa 601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beardsley-v-clark-iowa-1940.