Farmers' Cash Union v. Elswood

248 P. 477, 67 Utah 501, 1926 Utah LEXIS 68
CourtUtah Supreme Court
DecidedJuly 29, 1926
DocketNo. 4392.
StatusPublished
Cited by1 cases

This text of 248 P. 477 (Farmers' Cash Union v. Elswood) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Cash Union v. Elswood, 248 P. 477, 67 Utah 501, 1926 Utah LEXIS 68 (Utah 1926).

Opinion

THURMAN, J.

This is an action to recover judgment on a title retaining note made by defendant to plaintiff September 1, 1919, for the sum of $96, with interest at 10 per cent per annum, if paid at maturity, and 12 per cent thereafter, together with a reasonable sum for attorney’s fees in case of suit for collection. The note purports to have been executed in payment of one 12-hoe farmer’s favorite drill, and payments are indorsed on the note leaving a balance due of $35.93 at the date of the last payment, January 18, 1922. One of said payments so indorsed is for 6,917 pounds of wheat at 80 cents per bushel, less 15 cents per bushel for hauling, and less $22.40 interest. The balance for which plaintiff prays judgment is $35.93 and interest thereon, together with $20 attorney’s fee and costs.

The action was commenced in the city court of Salt Lake City. Defendant filed an answer in the same court in which he denied he executed the note in any manner or form except as his signature was fraudulently obtained by duress and threats and without consideration. Defendant also filed three counterclaims aggregating the sum of $220.70, for which he prayed judgment, together with interest and costs. One of said counterclaims is for 6,917 pounds of wheat (115 bushels), which defendant alleges plaintiff unlawfully took, carried away, and converted to its own use to defendant’s damage in the sum of $200.

What was done in the city court and what the judgment was, if any, in that court is not disclosed by the record. Whether the plaintiff had judgment and the defendant appealed, or the defendant had judgment and plaintiff appealed, is not made to appear. In short, it does not appear *503 that any appeal was ever taken by either plaintiff or defendant from a judgment in the city court, or that any judgment was ever rendered by that court from which an appeal could be taken. Notwithstanding the omission of these essentials, the record contains 218 pages of typewritten matter, a large percentage of which is in single space.

On the threshold of our investigations we are confronted with a motion to dismiss the appeal.

Respondent makes the point that an appeal from a judgment of the district court to this court is not allowed, where the case arose in a city court, unless the amount in controversy exceeds the sum of $100, citing Comp. Laws Utah 1917, as amended in chapter 34, Sess. Laws 1919, p. 63. It is contended by respondent that the amount in controversy in the instant case does not exceed the sum of $100. The question is discussed from many angles. One contention is that in determining the jurisdictional amount each counterclaim must be considered separately; that the aggregate sum of all cannot be considered in determining the amount, as each counterclaim is an independent cause of action. No authorities are cited upon that proposition. Another contention is that, notwithstanding the defendant counterclaims for $200 damages on account of alleged conversion of the wheat, still the evidence shows that the actual market value of the wheat at the time was only 80 cents per bushel, less 15 cents per bushel for hauling it to the market; net value of the whole 'being $74.75. This added to the remaining counterclaims, $20.70, aggregates only $95.45, which is less than the jurisdictional amount. Appellant, on the other hand, insists that the evidence showed a higher value of the wheat than 80 cents per bushel, which, together with interest to which defendant was entitled, makes the amount in controversy in excess of $200.

The court is of opinion it is not necessary in this case to attempt a solution of the question on the theories advanced by the parties litigant. While it is the undoubted right of either party to raise a jurisdictional question at any time, *504 it is likewise the duty of this court, on its own motion, to see that it does not transcend its jurisdiction in any matter pending before it.

As before stated, where the case arises in the city court, the statute limits the right of appeal to this court from a judgment of the district court to cases in which the amount in controversy exceeds the sum of $100.

There is in the instant case a somewhat unusual situation. The plaintiff sues in a city court upon an alleged contract to recover judgment for a certain sum of money. The defendant denies the contract, alleges duress, fraud, and want of consideration, and files certain counterclaims, among which is one for $200, for the wrongful conversion of wheat of which defendant was the owner. The case, in some way or another, reaches the district court in which plaintiff recovers judgment for the amount sued for, interest, attorneys’ fees, and costs. Defendant appeals to this court, and, when the jurisdiction of the court is assailed on the grounds that the amount in controversy does not exceed the sum of $100, defendant is forced to rely upon a claim for damages which he alleges he sustained by plaintiff wrongfully taking, carrying away, and converting to its own use, certain wheat belonging to the defendant. In other words, defendant, while repudiating plaintiff’s claim, which purports to be a claim arising on contract, seeks under the guise of a so-called counterclaim to recover damages for a claim arising in tort, and that too where the alleged claim does not arise out of the transaction of which plaintiff complains, and is not connected with the subject of the action. The question is, Can defendant do that, and use it as a means of conferring jurisdiction upon this court — a jurisdiction which otherwise it would not have ? Comp. Laws Utah 1917, § 6576, reads:

“The counterclaim mentioned in the next preceding section must be one existing in favor of a defendant and against a plaintiff between whom a several judgment might be had in the action, and arising out of one of the following causes of action:
*505 “1. A cause of action arising out of the transaction set forth in the complaint as the foundation of the plaintiff’s claim, or connected with the subject of the action:
“2. In an action arising upon contract, any other cause of action arising also upon contract, and existing at the commencement of the action.”

3 C. J. 419, discussing this question, says:

“When the answer does not properly set up the counterclaim, or where it clearly appears that a demurrer to the counterclaim was properly sustained, or that the set off was a mere specious pretense, or is improperly filed in the particular action, and in other like cases, the amount of such counterclaim will not be considered in determining appellate jurisdiction.”

Some of the cases cited in the note to the above quotation bear strong analogy to the case at bar.

In Miller v. Black, 56 Tex. Cr. App. 320, 120 S. W. 559, in concluding its opinion, the court says:

“The county court correctly held that the claim of $75 actual damages and $100 exemplary damages for the assault could not be offset against plaintiff’s claim for the corn alleged to have been converted by appellant. The suit was based on a certain demand, a contract, and defendant could not offset the same by a claim for unliquidated damages founded upon a tort. Sayles’ Ann. Civ. St. 1897, art. 754;

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Bluebook (online)
248 P. 477, 67 Utah 501, 1926 Utah LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-cash-union-v-elswood-utah-1926.