Chicago, R. I. & P. Ry. Co. v. Bankers' Nat. Bank

1912 OK 166, 122 P. 499, 32 Okla. 290, 1912 Okla. LEXIS 255
CourtSupreme Court of Oklahoma
DecidedMarch 12, 1912
Docket1606
StatusPublished
Cited by30 cases

This text of 1912 OK 166 (Chicago, R. I. & P. Ry. Co. v. Bankers' Nat. Bank) 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
Chicago, R. I. & P. Ry. Co. v. Bankers' Nat. Bank, 1912 OK 166, 122 P. 499, 32 Okla. 290, 1912 Okla. LEXIS 255 (Okla. 1912).

Opinion

Opinion by

AMES, C.

This action was commenced in August, 1908. One J. A. Simpson had assigned to the plaintiff all of his right, title, and interest “in and tO' a certain claim for damages to personal property filed by me against the Chicago, Rock Island & Pacific Railway Company.” The assignment was given as security for a note which Simpson owed the plaintiff, amounting to less than the claim against the defendant. The petition alleged that the Southern Railway Company accepted a shipment of goods at Harriman, Tenn., in January, 1907, “and agreed and undertook to transport and deliver the same to Ard-more, Okla. (then Indian Territory), for a consideration of $126, * * * and that the same were delivered to the defendant at Memphis, Tenn., by said Southern Railway Company, January 9, 1907, and accepted by said defendant to be transported from Memphis, 'Tenn., to deliver to J. A. Simpson at Ardmore, Okla., in good condition, for the consideration here-inbefore mentioned.” The plaintiff recovered and the defendant brings error.

The first error assigned is that, as the assignment was intended as collateral security, it did not vest in the plaintiff such an interest as would permit the plaintiff to maintain the action in its own name, and that Simpson was a necessary party in the case. We .do not agree with this contention. In Minnetonka Oil Co. v. Cleveland Vitrified Brick Co., 27 Okla. 180, 111 Pac. 326, Mr. Justice Williams, in delivering the opinion of the court, says:

“The more serious question in this record to determine is whether the contract was assignable. At common law no chose in action was assignable. In equity, however, every chose in *292 action, except a tort, was assignable, but subject to all equities .that might be set up against it. McCrum v. Corby, 11 Kan. 467 (2d Ed. 353); Kansas Midland Ry. Co. v. Brehm, 54 Kan. 751, 39 Pac. 690; Barringer v. Bes Line Constr. Co., 23 Okla. 131, 99 Pac. 776 [21 L. R. A. (N. S.) 597]; Glenn v. Marbury, 146 U. S. 499, 12 Sup. Ct. 914, 36 L. Ed. 790. Under our statute, every chose in action, not founded upon a tort, is assignable, and right of action is conferred upon the assignee. See section 4224, Wilson’s Rev. & Ann. St. 1903; St. Okla. 1893, sec. 3898; K. C., M. & O. Ry. Co. v. Shutt, 24 Okla. 96, 104 Pac. 51 [138 Am. St. Rep. 870, 20 Ann. Cas. 255].”

Simpson’s claim against the defendant, not arising out of a pure tort, was assignable. 2 Wilson’s Rev. & Ann. St. 1903, secs. 4163, 4224 (Comp. Laws 1909, secs. 7349, 5558) ; K. C., M. & O. Ry. Co. v. Shutt, 24 Okla. 96, 104 Pac. 51, 138 Am. St. Rep. 870, 20 Ann. Cas. 255. 2 Wilson’s Rev. & Ann. St. 1903, sec. 4226 (Comp. Laws 1909, sec. 5560), provides:

“An executor, administrator, guardian, trustee of an express trust, a person with whom, or in whose name, a contract is made for the benefit of another, or a person expressly authorized by statute, may bring an action without joining with him the person for whose benefit it is prosecuted. Officers may sue and be sued in such name as is authorized by law, and official bonds may be sued upon in the same way.”

In construing this statute before it was adopted by us, the Supreme Court of Kansas, in Walburn v. Chenault, 43 Kan. 352, 23 Pac. 657, in deciding that the assignee of a judgment against a railroad company could sue thereon in his own name, notwithstanding that a beneficial interest was reserved to third persons, says:

“The consideration for the assignment was a large indebtedness of Tiernan to Chenault’s Bank, or the bank of which he was president; and it was agreed that the proceeds of the judgment should be applied in payment of the indebtedness, and to the discharge of an attorney’s lien which had attached to the judgment. The assignment was absolute, and is such as to vest in the assignee the whole legal title. Pie had such a beneficial interest in the proceeds of the judgment that he could bring an action in his own name, without joining other parties, who by collateral agreement might be entitled to a share of the pro *293 ceeds. Under section 28 of the Code, it is provided that an action may be brought by a ‘person with whom or in whose name a contract is made for the benefit of another, * * * without joining with him the person for whose benefit it is prosecuted.’ The assignee was authorized to receive the proceeds of the judgment, and the assignment is such as to afford complete protection to the plaintiffs in error against a second action by other persons interested in the proceeds of the judgment, and to whom the assignee may be required to account. The plaintiffs in error were not limited or cut off from any defense by reason of the assignment, and the absence of parties to whom the assignee must account cannot cause any future embarrassment to the plaintiffs in error. In Williams v. Norton, 3 Kan. 295, it was held that where a note was assigned to one with a beneficial interest in the proceeds of the same, and with an understanding that he was to receive the money on it, such person was the real party in interest, within the meaning of the Code, and might sue in his own name, although he was not entitled to apply to his own use the whole of the proceeds. Allen v. Brown, 44 N. Y. 228; Pom. Rem. sec. 132. The action was properly brought in the name of the assignee, and no prejudice could result to the plaintiffs in error by his failure to join other parties interested in a part of the proceeds of the judgment, or by his failure to allege his liability to them.”

It is true here, as in the case of Walburn v. Chenault, supra, that a recovery by the plaintiff is a complete protection to the defendant against any other claim which Simpson might assert, and that any defense which it might urge against Simpson it might likewise urge against the plaintiff. While there is some conflict in other jurisdictions as to whether the assignee may sue when the assignment is intended merely as collateral security (4 Cyc. 99-101, and notes), we think the previous decisions of this court, and of the Supreme Court of Kansas construing our statute, are sufficient to establish the right of such an assignee to maintain the action without joining the assignor.

It is urged, however, that as this cause of action arose in the Indian Territory, and was assigned to the plaintiff prior to statehood, the statutes of Arkansas should govern, and that under the practice then prevailing Simpson was a necessary party. Mansf. Dig. secs. 4934 and 4'73 (Ind. Ter. Ann. St.. *294 1899, secs. 3139, 455); Lanigan v. North, 69 Ark. 62, 63 S. W. 62. As this action, however, was not commenced until after statehood, we think the procedure in force at the time it was-instituted would apply. Independent Cotton Oil Co. v. Beacham, 31 Okla. 384, 120 Pac. 969; Chicago, Rock Island & Pac. Ry. Co. v. Barone, post, 122 Pac. 926.

It is next contended that the defendant’s demurrer to the plaintiff’s evidence should have been sustained,' on account of a fatal variance.

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Bluebook (online)
1912 OK 166, 122 P. 499, 32 Okla. 290, 1912 Okla. LEXIS 255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-r-i-p-ry-co-v-bankers-nat-bank-okla-1912.