Crandall v. Trowbridge

170 Iowa 155
CourtSupreme Court of Iowa
DecidedJanuary 20, 1915
StatusPublished
Cited by7 cases

This text of 170 Iowa 155 (Crandall v. Trowbridge) 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
Crandall v. Trowbridge, 170 Iowa 155 (iowa 1915).

Opinion

Preston, J.

1. Process: service: fraud in securing: jurisdiction. With the merits of the controversy between plaintiffs and defendants, we have nothing to' do on this appeal. There has been no general appearance, or plea to, or trial upon the merits, except that the Savings Bank has filed an answer. The appearance by defendant Swenson was under Par. 4; Chap. 162, Acts of the Thirty-Fourth

General Assembly. The question is, whether plaintiffs practiced a fraud upon appellant, as alleged. It is almost entirely a question of fact. The fraud alleged is, that the presence of appellant in Clay County, Iowa, was procured by plaintiffs upon the representation that if he would come to Spencer, Iowa, he would there have delivered to him an automobile as payment of the $1,200 note of plaintiffs which Swenson held, and by plaintiffs’ concealing from him certain facts which, if he had known, would have caused him not to come within the jurisdiction. Appellant says his presence in Iowa was not voluntary; that plaintiffs’ purpose was unknown to him. If the presence' of appellant in Iowa was procured by trickery, deceit, or the fraudulent and wrongful acts of plaintiffs, or those acting in their behalf, the court did not obtain jurisdiction,-and in that case the motion to quash should have been sustained. Appellant cites upon this point: Dunlap v. Cody, 31 Iowa 260; Mooney v. U. P. R. Co., 60 Iowa 346; Toof v. Foley, 87 Iowa 8; Mahoney v. Insurance Co., 133 Iowa 570; Allen v. Wharton, 59 Hun. 622, 13 N. Y. Sup. 38; Townsend v. Smith, 47 Wis. 623; Van Horn v. Great Western Mfg. Co., 37 Kans. 523; Wood v. Wood, 78 Ky. 624; Chubbuck v. Cleveland, 37 Minn. 466; Wauzer v. Bright, 52 Ill. 35; Heston v. Heston, 52 N.J. Eq. 91; Battelle v. Youngstown, etc., 84 Tenn. 355; Frawley v. Casualty Co., 124 Fed. 259; Cavanaugh v. Manhattan, 133 Fed. 818.

Plaintiffs both signed the notes and were interested in [157]*157the California land deal, and were investigating the facts to make defense. They are each chargeable with the acts of the other, or their attorney, as to the service of notice in the action by plaintiffs. Toof v. Foley, supra.

It is the claim of appellant that plaintiffs had been planning to have Swenson come to Iowa in order to serve him with notice, and that they concealed such purpose from him. There is no other claim of concealment. If such was not their purpose, then, of course, there was no concealment of it. The evidence, which will be later pointed out, shows that until after Crandall had the conversation with Gillespie on the morning of October 28, and when Crandall supposed Swenson had already started to Spencer, there was no intention to sue Swenson, consequently no fraud or concealment.

Fraud and fraudulent intent and purpose may be inferred-from the acts and representations of the parties and all the facts and circumstances shown. Bean, etc., Mfg. Co. v. Standard Spoke Co., 131 Fed. 215. But as between honest and dishonest motives and purposes, we should presume honesty of intent and purpose unless the facts and circumstances are such as to satisfy the mind that the acts and statements relied upon are fraudulent or dishonest.

The legal propositions seem to be settled, so that it is unnecessary to discuss the cases. ¥e do not understand counsel for appellees to controvert the legal propositions in appellant’s authorities before cited. They contend, however, that under the evidence there was no fraud or unfairness, and that appellant came voluntarily to Spencer, Iowa. After a careful examination of the record, we are of opinion that the position of appellees ought to be sustained.

Without going too much into detail, we shall state the more important facts appearing in the record. Although the hearing was of a motion, supported by affidavits, with counter-affidavits, the record is voluminous for such a case, and there, is necessarily more or less repetition. The facts are, in the main, without substantial dispute, although there [158]*158is some conflict as to some of the details which we shall endeavor to point out. To better understand the situation, we shall briefly státe the claim of plaintiffs in the action. It is, in substance, that about May 25, 1912, plaintiffs and another contracted for the purchase of land in California; that thereunder $8,700.00 would be due August 1, 1912; plaintiffs were unable to meet the payment, and in August, defendant Trowbridge represented that defendant Swenson would advance that amount of money if plaintiffs and Trowbridge would execute their note for that amount, which plaintiffs agreed to, and did, do. The note was delivered to Trowbridge for Swenson as security for the money to be furnished by Swenson; that later, in August, 1912, Trowbridge and Swenson represented to plaintiffs that Swenson had forwarded $8,700.00 to the person in California, to whom it was due, and had accepted as security therefor the note of plaintiffs and Trow-bridge, but informed plaintiffs that the note was too large for Swenson to handle and that Swenson desired to have smaller notes given in lieu thereof; that this was done at the request of Swenson, and three new notes of $5,000.00, $2,500.00 and $1,200.00 were given; that Trowbridge, Swenson and one George Gillespie conspired together to induce plaintiff to execute the $8,700.00 note; that Swenson had not agreed to furnish the money; that Swenson had not sent any money to California, and that the statement that it had been done ■ was false. The $1,200.00 note, endorsed by Trowbridge to. Swenson, and still held by him at the time this suit was brought, and the negotiations for its payment, are involved in this appeal. The $2,500.00 note is held by defendant Savings Bank, and it has answered, claiming to be an innocent holder.

We shall state the substance of the affidavits and testimony bearing upon the alleged fraud by which appellant claims plaintiffs induced him to come to Iowa. October 4, 1912, plaintiff, Crandall, sent appellant a telegram making inquiry whether he would be at home the next day. Appellant replied by telegraph from Nebraska that he' would be at home. [159]*159The next day, Mr. Heald, of Spencer, Iowa, an attorney for plaintiffs, saw Swenson at his home in Nebraska. It is shown by the affidavit of appellant, and not disputed by appellees, that at this time Mr. Heald maintained a friendly attitude towards appellant and stated that plaintiffs might have some financial difficulty in meeting some of the notes on the date of their maturity, and that Crandall had recently purchased an automobile', which he desired to sell to appellant and have the purchase price apply as a payment of the $1,200 note held by appellant; appellant stated to He'ald that, he would consider Crandall’s proposition and requested Heald to have Crandall send a detailed description of the automobile; that Heald also stated that plaintiffs desired to enlist appellant’s service's in disposing of the land for which the notes had been given. October 15th, Crandall wrote a letter to appellant referring to the conversation between appellant and Heald in regard to procuring appellant’s assistance to sell the land and in regard to the sale of the automobile, stating further that he expected to go to Council Bluffs the next Saturday night, and suggesting that appellant meet him Sunday to go over the matters.

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170 Iowa 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crandall-v-trowbridge-iowa-1915.