Dakota National Bank v. Johnson

204 N.W. 840, 52 N.D. 845, 1925 N.D. LEXIS 153
CourtNorth Dakota Supreme Court
DecidedJune 16, 1925
StatusPublished
Cited by4 cases

This text of 204 N.W. 840 (Dakota National Bank v. Johnson) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dakota National Bank v. Johnson, 204 N.W. 840, 52 N.D. 845, 1925 N.D. LEXIS 153 (N.D. 1925).

Opinion

*847 Christianson, Ch. J.

The defendants Lewis Johnson and Lena Johnson appeal from an order of the County Court of Hansom County denying their motion to -vacate a default judgment in the above entitled garnishment action.

The material facts are as follows: On March 10th, 1924, the plaintiff commenced an action against the defendant Lewis Johnson, in tho county court of Hansom county, upon a promissory note for $100.00. The defendant Lewis Johnson made default in said action, but judgment was not entered therein until October 10th, 1924. On August 28th, 1924, the plaintiff instituted the above entitled garnishment action (ancillary to said main action on the $100.00 note), in the county court of Hansom county, the Farmers Elevator Company of Enderlin, North Dakota, being named as garnishee therein. Said garnishee interposed an answer or affidavit admitting that two loads of wheat had been hauled and delivered to the elevator of said garnishee and sold in the name of the defendant Lewis Johnson and that the said garnishee had in its possession $119.85, the proceeds of said wheat; but it was further asserted that one Lena Johnson had served upon said garnishee an affidavit claiming that she was the owner of said wheat; and, hence, the owner of the proceeds of the sale thereof. The garnishee further averred that it had no knowledge or information as to who was tho owner of said wheat except as so stated in its affidavit and the garnishee deposited the said sum of $119.85 in coui’t to bo paid to the party or parties whom the court should find entitled thereto. On October 13th, 1924, said Lena Johnson commenced an action in the district court of Hansom county against the said Elevator Company to recover from it the said sum of $119.85. Thereafter, on *848 October 18th, 1924, tbe said county court made an order directing that the said Lena Johnson be interpleaded as a. defendant in said garnishment action, and requiring that, within thirty days after the service of such order upon her, she set forth her claim if any she had to the said moneys.

The order recites that it is made upon the affidavit of the manager of the garnishee elevator company, and the affidavit of Lena Johnson; and upon the motion of the Farmers Elevator Company, garnishee. The 'affidavit of Lena Johnson referred to in such order states that she is the owner of the farm upon which the grain in controversy was raised “and the-sole owner of the crop raised on the said farm;” and “the sole owner of the proceeds of $119.85 from the sale of the grain above described and entitled to the immediate payment thereof. That on the 26th day of August 1924, she delivered to the Enderlin Farmers Elevator Company of Enderlin, North Dakota, two loads' of wheat and received grain ticket No. 5637 showing 75 bu. 22 lb., and grain ticket showing 58 bu. 50 lb., which last ticket is No. 5629. That on said day instructions were left to sell both loads, and they were sold for $139.85. . . . That $20.00 has been paid by the said elevator company from the said proceeds, by consent of all parties concerned, but that balance of $119.85 is now held by said elevator company, on account of the said garnishment action. . . . That when said two loads of grain were delivered to the elevator through some error the grain was put in the name of Lewis Johnson, the husband of this deponent. That soon thereafter the elevator was notified to change the record to show the true owner thereof. That the said Lewis Johnson has no right, title or interest in the said grain.”

On November 1st, 1924, said Lena Johnson served and filed what was denominated a special appearance wherein she set forth that on the 13th day of September, 1924, she had caused written demand to be served upon the said Farmers Elevator Company that they pay to her the said sum of $119.85 then in its possession; that such payment was not made; 'and that thereafter on the 13th day of October, 1924, she commenced an action in the district court of Kansom county against the said Farmers Elevator Company as defendant to recover the said sum of money; that no attempt was made to interplead said Lena Johnson as a party defendant in said garnishment action until *849 after she bad commenced tbe said action in 'tbe district court of Ransom county; that said Farmers Elevator Company was guilty of neglect and delay in applying for an order of interpleader 'and that it ought not be permitted to defeat tbe action brought by said Lena Johnson against it by such means; and it is asserted that by virtue of these facts the district court of Ransom county acquired and bad jurisdiction over tbe controversy and that tbe county court of Ransom county was and is without jurisdiction to determine tbe same. The defendant, Lewis Johnson, appeared in said garnishment action and interposed an answer therein, alleging that the grain which he had delivered to the Farmers Elevator Company belonged to the said Lena Johnson and that the proceeds of said sale belonged to her and that he had no right, title or interest therein.

The action brought by Lena Johnson against the Farmers Elevator Company in the district court of Ransom county came on for trial on December 3rd, 1924. There was an objection by the defendant in that action to the introduction of any evidence and a motion to dismiss the action on the ground that the county court of Ransom county had acquired jurisdiction of the parties thereto and of the subject matter involved therein, and that the district court had no jurisdiction. This motion was granted by the district court on the grounds so stated. On December 11th, 1924, plaintiff applied to the county court for, and obtained, a default judgment in said garnishment action against Lewis Johnson and Lena Johnson. In such default judgment it was adjudged that the said sum of $119.85 which the Farmers Elevator Company had paid into court be delivered to the plaintiff, and that the interpleaded defendant, Lena Johnson, be forever barred and precluded from making any claim to said monies or any part thereof. This judgment was obtained and entered without any notice whatever to either the defendant Lewis Johnson or to the interpleaded defendant Lena Johnson. In January 1925, the defendants Lewis Johnson and Lena Johnson moved that such judgment be vacated. The motion was denied and they have appealed.

In our opinion the judgment rendered against the appellants was and is irregular, and the county court erred in refusing to vacate it.

Our statutes relating to garnishment provide:

“The proceedings against a garnishee shall be deemed an action by *850 the plaintiff against the garñishee 'and defendant as .parties defendant, and all provisions relating to proceedings in civil actions at issue . . . and relief from default or proceedings taken . . . shall be applicable thereto.” Comp. Laws, 1913, § 7581.
“The defendant may in all cases by answer duly verified, to be served within thirty days from the service of the garnishee summons on him, defend the proceedings against the garnishee . . . upon any ground upon which a garnishee might defend the same; . . Comp. Laws, 1913, § 7580.

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Cite This Page — Counsel Stack

Bluebook (online)
204 N.W. 840, 52 N.D. 845, 1925 N.D. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dakota-national-bank-v-johnson-nd-1925.