First National Bank of Topeka v. United Telephone Ass'n

353 P.2d 963, 187 Kan. 29, 1960 Kan. LEXIS 461
CourtSupreme Court of Kansas
DecidedJuly 2, 1960
Docket41,796
StatusPublished
Cited by19 cases

This text of 353 P.2d 963 (First National Bank of Topeka v. United Telephone Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank of Topeka v. United Telephone Ass'n, 353 P.2d 963, 187 Kan. 29, 1960 Kan. LEXIS 461 (kan 1960).

Opinions

The opinion of the court was delivered by

Schroeder, J.:

This is an action under the code of civil procedure brought in the district court of Shawnee County by the assignee on an assignment of all moneys due or to become due on a construction contract against the obligor, a resident of Ford County, joining the assignor, a resident of Shawnee County, as a party defendant to recover the sum of $9,694.25 with interest.

The controlling question presented by this appeal is whether the assignor is a necessary party to the action and properly joined, [31]*31thereby enabling the trial court to acquire jurisdiction over the obligor by service of process in Ford County.

The First National Bank of Topeka (plaintiff-appellee), successor to the National Bank of Topeka and The Central National Bank and Trust Company of Topeka (hereafter referred to as the bank or the assignee) filed a petition against the United Telephone Association, Inc. (defendant-appellant), with its office and principal place of business at Dodge City, Ford County, Kansas, (hereafter referred to as United or the obligor) and the Neale Construction Company, Inc. (defendant-appellee), with its office and principal place of business at Topeka, Shawnee County, Kansas, (hereafter referred to as Neale or the assignor). Neale has recently been before this court in Fine v. Neale Construction Co., 186 Kan. 537, 352 P. 2d 404, and see, Fine v. Telephone & Power Supply Co., 185 Kan. 383, 345 P. 2d 616.

After reciting the parties as above indicated the petition, as amended, omitting the prayer, alleges:

“For its cause of action against said defendants, plaintiff alleges that heretofore and on the 30th day of December, 1952, the defendant Neale Construction Company, Inc., entered into a contract with its codefendant United Telephone Association, Inc., of 610 Second Avenue, Dodge City, Kansas, being contract No. REA Project Kansas 531A, for the performance of certain work and the furnishing of materials in connection with the installation of 372.86 miles of telephone line located in Ford, Clark, Hodgeman and Ness Counties, Kansas. Plaintiff alleges that arrangements were made by the defendant Neale Construction Company, Inc., with this plaintiff to borrow money from plaintiff for the purpose of carrying out said contract, and that on the 4th day of February, 1953, said defendant executed and delivered to plaintiff’s said predecessor, National Bank of Topeka, as collateral security for the repayment of all sums of money which should be borrowed by it from plaintiff’s said predecessor from time to time, an assignment of all moneys due and, to become due to said defendant Neale Construction Company, Inc., from the defendant United Telephone Association, Inc., under said contract, directing therein that all payments so due and later coming due to said defendant Neale Construction Company, Inc., should be made by defendant United Telephone Association, Inc., direct to plaintiff’s said predecessor. Said assignment was accepted by the defendant United Telephone Association, Inc., on the 16th day of February, 1953, a true and correct copy of said assignment and acceptance being attached hereto, marked Exhibit ‘A,’ and made a part hereof as though set forth herein in full. That, pursuant to and in reliance upon said assignment between and among the defendants herein and plaintiff’s said predecessor, said National Bank of Topeka advanced to the defendant Neale Construction Company, Inc., the sum of Thirty-eight Thousand Six Hundred Twenty-five and 67/100 ($38,625.67) as evidenced by a certain promissory note of said defendant Neale Construction Company, Inc., a true and correct copy of [32]*32which is attached hereto, marked Exhibit ‘B’ and made a part hereof as though set forth herein in full; that plaintiff is now the owner and holder of said promissory note and said assignment agreement, and of the debt thereby evidenced and secured.
“That various payments have been made on said note from time to time, as shown by the endorsements on the reverse side of Exhibit ‘B’ hereto, the last payment thereon having been made on the 12th day of September, 1956. That there remains an unpaid principal balance due on said note indebtedness, as of September 12, 1956, in the sum of Nine Thousand Six Hundred Ninety-four and 25/100 Dollars ($9,694.25), no payments or credits of any kind or amount having been made on said promissory note indebtedness since said date.
“Plaintiff further alleges that, prior to the filing of this action, the defendant Neale Construction Company, Inc., had performed all or substantially all of the work it had contracted to perform under the terms of its said construction contract of December 30, 1952, with the defendant United Telephone Association, Inc.; that plaintiff has never at any time released either of the defendants herein from the obligations of said assignment agreement, hereto attached as Exhibit ‘A’; that, notwithstanding the fact that plaintiff has not in any way or at any time released either of said defendants from said assignment agreement, the defendants have breached said assignment agreement in that, during the five-year period immediately preceding the filing of this action, the defendant United Telephone Association, Inc., has made payments directly to its co-defendant Neale Construction Company, Inc., in payment for work performed by said co-defendant under said construction contract, in amounts which are in excess of the amount of the balance due to plaintiff on said note indebtedness, said payments being made without the actual knowledge or consent of plaintiff.” (Emphasis added.)

It is unnecessary to set forth the exhibits in detail except the following paragraph of the assignment, Exhibit “A,” which reads:

“Now, Therefore, as collateral security for the repayment of said sums of money as may be borrowed from National Bank of Topeka by the undersigned from time to time, the undersigned does hereby assign, transfer and set over unto National Bank of Topeka, all money due and to become due to the undersigned from the United Telephone Ascociation, Inc., under and pursuant to the terms of the above described contract, and the undersigned does hereby direct that all payments so due shall be made by the United Telephone Association, Inc., direct to National Bank of Topeka for the account of the undersigned.” (Emphasis added.)

Summons was served upon United by the sheriff of Ford County there at Dodge City. United made a special appearance moving the court to set aside the service of summons upon it for the reason that the district court of Shawnee County acquired no jurisdiction of United by the service of such summons. This motion was overruled and subsequent thereto, after various motions had been directed against the petition, and amendment thereof, Neale answered [33]*33and United demurred challenging the court’s jurisdiction, among other things. The tidal court overruled United’s demurrer, whereupon United filed an answer which set forth an affirmative defense. The bank filed a special demurrer and a motion to strike certain portions of United’s answer which the trial court sustained in its entirety, thereby striking the affirmative defense alleged by United.

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First National Bank of Topeka v. United Telephone Ass'n
353 P.2d 963 (Supreme Court of Kansas, 1960)

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Bluebook (online)
353 P.2d 963, 187 Kan. 29, 1960 Kan. LEXIS 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-of-topeka-v-united-telephone-assn-kan-1960.