Dunlop v. First Trust Joint Stock Land Bank

270 N.W. 362, 222 Iowa 887
CourtSupreme Court of Iowa
DecidedDecember 15, 1936
DocketNo. 43549.
StatusPublished
Cited by1 cases

This text of 270 N.W. 362 (Dunlop v. First Trust Joint Stock Land Bank) 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
Dunlop v. First Trust Joint Stock Land Bank, 270 N.W. 362, 222 Iowa 887 (iowa 1936).

Opinion

Albert, J.

On the.24th of June, 1935, the plaintiff filed his original petition herein, which was later followed by an amendment thereto. On the 12th of October, 1935, the defendant appeared and filed an answer. The prayer under the original petition was for specific performance of a contract, requiring the defendant to convey the property involved and, on failure of the defendant to execute and deliver a deed, that a commissioner be appointed to make such conveyance; and “that the court grant such other and further relief in the premises as is equitable”.

Briefly stated, the claim of the plaintiff in this petition and amendment was that he had purchased the land involved, to wit, 240 acres in Greene county, Iowa, that the plaintiff had performed his part of the contract, and that the land bank had refused to make conveyance in accordance with the terms of the contract.

The case went to trial and after the plaintiff had introduced his testimony he filed a substituted petition. This petition differed from the original petition in that it prayed for “such orders, judgments or decrees as shall be equitable or necessary to afford full relief on account of the matters complained of”.

The defendant is a nonresident corporation with its principal place of business in the city of Chicago. Service of the original notice herein was not made within the state of Iowa, but was duly served on the defendant corporation in the city of Chicago; in pursuance of which the defendant in due time appeared in the Iowa court and filed answer to the original petition and amendment as above stated, When the substituted petition was *889 filed defendant filed special appearance thereto and objected to the jurisdiction of the court, claiming therein that in the original petition and amendment the plaintiff’s action was for specific performance in favor of the plaintiff, and that said cause of action was an action in rem and the relief prayed was in rem, and that it was not an action in personam and against the defendant as now prayed in the substituted petition; and that in said substituted petition a new, distinct,. and independent cause of action was alleged, and new issues set up, changing the entire theory of the case as originally pleaded by the plaintiff, and alleging a distinction between the contract originally sued on and the substituted petition in that in the substituted petition the additional allegation is made that the defendant “would take no further steps in the collection of said debt or enforcement of said judgment against said lands, and receive and accept the things proim ised to be given them in full satisfaction and discharge thereof.” Otherwise the same general allegations appear in both petitions, except that in the latter part of the substituted petition it is alleged, in addition, that one Don Dunlop was a party to the contract, and by reason of said allegation the cause of action therein stated differs from the original cause of action in that the prayer of the original petition could be granted only in an action in rem, and defendant asks that the court “adjudge and decree that it has no jurisdiction to try and determine any of the issues or cause of action plead or to grant the relief asked in the substituted petition.”

Reference is also made to a petition of intervention, which will be referred to later in this opinion;

The court overruled the special appearance; defendant refused to plead further and judgment was entered in favor of the plaintiff.

The defendant land bank relies largely, if not wholly, on the case of Fidelity & Casualty Co. of New York v. Bank of Plymouth, 213 Iowa 1058, 1061, 237 N. W. 234, 235. We do not think that said case solves the question we have before us. That case was a creditor’s bill to set aside a deed to a 160-acre tract of land, growing out of the following facts. One Ehlers, a member of a partnership doing a banking business, was appointed administrator of an estate. He gave a bond with the plaintiff as surety. The banking partnership failed. Judgment had been obtained against this plaintiff on the aforesaid bond. Valentine, *890 who was a member of said partnership, and his daughter, Gertrude B. Huntley, were residents of the state of California, and in this creditor’s bill proceedings service was made upon them in said state. It appears that the creditor’s bill was to set aside a' deed to a described quarter section of land in Cerro Gordo county, Iowa, which had been made by Valentine to his daughter, Gertrude B. Huntley. Huntley entered a general appearance in the Cerro Gordo county court to said creditor’s bill and filed answer. Prior to the trial of the case depositions were taken which disclosed that Valentine had also deeded to his daughter Huntley certain business property in Mason City, Iowa, and Huntley had sold said business property for $19,000. The plaintiff then filed an amended and substituted petition, and among other things asked that Gertrude B. Huntley be held to be a trustee and to account for the $19,000 she had received on the sale of the business property in Mason City; whereupon Gertrude B. Huntley entered a special appearance challenging the jurisdiction of the court to require her to account or to enter personal judgment against her for the amount found due as the result of the sale of said property. "We there held that section 11573 of the Code provides that:

“The relief granted to the plaintiff, if there be no answer, cannot exceed that which he has demanded in his petition. In any other case the court may grant him any relief consistent with the case made by the petition and embraced within the issue. ’ ’

The opinion continues:

“ It is obvious that no cause of action upon which a personal judgment could have been entered against appellee was set up in the original petition. Surely, under the provisions of the foregoing statute, no personal judgment could, upon the allegations of the petition, have been entered against her by default. We think it equally clear that none could have been entered against her if a trial had been had upon the issues joined on said original petition. The only judgment which could have been properly rendered against the appellee upon the cause of action as originally stated was such as would have been consistent with the allegations of the petition and embraced within the issues tendered. (Citing cases.)
*891 “The remedy sought in the petition was the subjection of the 160-acre tract to the payment of the debt. Property in such case remains that of the debtor, and the creditor’s remedy is against the property, and not for a personal judgment. Lambert v. Reisman Company, 207 Iowa 711, 223 N. W. 541.”

The opinion continues, and holds that:

“The amended and substituted petition sets up a cause of action upon which both an accounting and personal judgment are sought. The relief prayed for in the original action was in rem and against the property only. Kolb v. Mall, 187 Iowa 193, 174 N. W. 226. The distinction between an action in rem and one in which an accounting and personal judgment is asked is obvious.”

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Related

Sloan-Pierce Lumber Co. v. Gardiner
3 N.W.2d 531 (Supreme Court of Iowa, 1942)

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Bluebook (online)
270 N.W. 362, 222 Iowa 887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunlop-v-first-trust-joint-stock-land-bank-iowa-1936.