Damicus v. Kelly

234 N.W. 416, 120 Neb. 588, 1931 Neb. LEXIS 22
Nebraska Supreme Court·Decided January 16, 1931·No. No. 27381·Published·Cited by 3 cases

Opinion

Eberly, , J.

This appeal involves the interpretation of the provisions of the Nebraska “bulk sales” statute. Comp. St. 1929, sec. 36-501. It appears that certain actions were brought by one Peter Damicus to recover the rental accruing to him under the terms of a written lease with one Nelson and one Smith for the period January to November, 1928, inclusive. Judgments were entered for the plaintiff. Subsequently garnishment proceedings in aid of execution were had in which Patrick H. Kelly and Edward J. Kelly appeared and were examined as garnishees. Thereafter, challenging the answers of these parties thus made, this action was brought against them under the. provisions of section 20-1030, Comp. St. 1929.

It also appears that, during the period covered by the written lease referred to, Nelson and Smith were the proprietors of a stock of drugs and carried on a retail drug business in Omaha, Nebraska. In the month of November, [589]*5891928, they sold the stock of drugs to the defendants Kelly “in bulk” and “otherwise than in the ordinary course of trade and in the regular and usual prosecution of the seller’s business.” The present action was prosecuted by the plaintiff on the theory that the Kellys had failed, in the purchase of the drug stock so made, to comply with the provisions of section 36-501, Comp. St. 1929, and were therefore to .be deemed trustees in possession of the stock by them purchased for the benefit of the creditors of Nelson and Smith, of whom plaintiff was one. There was judgment for plaintiff in the district court, from which the defendants appealed.

As their first contention, the defendants challenge the sufficiency of the plaintiff’s petition. It does not appear that this point was properly presented to the trial court. True, in the amended answer on which the case was tried, as part thereof, the substance of a demurrer is incorporated, but joined to paragraphs containing a general denial and other facts constituting a defense pleaded specially. However, the controlling rule of pleading applicable to the question presented by this record is that, in this jurisdiction, “A demurrer to the petition is not, by the provisions of our Code of Practice, a proper part of the answer filed in a case, and should be disregarded.” Fidelity & Deposit Co. v. Parkinson, 68 Neb. 319; Kyner v. Whittemore, 90 Neb. 188; Pine-Ule Medicine Co. v. Yoder & Eply, 91 Neb. 78. The bill of exceptions discloses no demurrer ore tenus was interposed by the defendants prior to or during the introduction of the evidence. After the introduction of evidence had been completed and all parties had rested, the defendants moved for an instructed verdict, stating, as one reason for the application, “plaintiff’s petition does not state a cause of action against the defendants, or either of them.” This motion the district court denied. We are of the opinion that it did not err in so doing. So far as the quoted challenge to the petition is concerned, it was tantamount to a general demurrer ore tenus interposed at the conclusion of the evidence. Thus considering it, the language employed by commissioner Albert in National Fire [590] Ins. Co. v. Eastern Building & Loan Ass’n, 63 Neb. 698, is controlling and as applied to the instant case approved. Judge Albert, in the case referred to, said in part: “It is first urged that the court erred in overruling the defendant’s demurrer ore tenus. This demurrer was interposed after both parties had rested. * * * It will suffice, perhaps, to say that had the demurrer been interposed before the introduction of any testimony, or before the parties had developed their respective theories of the case, it should have been sustained. But coming, as it did, at the close of the testimony, we cannot ignore the construction placed upon the petition by the parties to the suit, as evidenced by the answer and the nature of evidence introduced. Interposed at so late a day, the pleading assailed should be scanned in the light of the entire record, and the court should give it such construction as the parties' themselves have seen fit to place upon it, although, standing alone, it might not admit of such construction. Viewed in that light, the demurrer, in our opinion, was properly overruled.” See, also, Punteney-Mitchell Mfg. Co. v. Northwall Co., 66 Neb. 5. While not intending to create the inference that the petition in the instant case was subject to successful challenge by demurrer at any time, nevertheless the reasons set forth by Judge Albert are otherwise applicable and convincing, and we are of the opinion that no error was committed in sustaining the pleading assailed in the district court.

In the instant case, both plaintiff and defendants moved for instructed verdicts at the close of the evidence. The defendants’ motion was denied and the plaintiff’s sustained.

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Damicus v. Kelly, 234 N.W. 416, 120 Neb. 588, 1931 Neb. LEXIS 22 (Neb. 1931).

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