Fitterling v. Welch

79 N.W. 500, 76 Minn. 441, 1899 Minn. LEXIS 622
CourtSupreme Court of Minnesota
DecidedJune 8, 1899
DocketNos. 11,672—(144)
StatusPublished
Cited by7 cases

This text of 79 N.W. 500 (Fitterling v. Welch) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fitterling v. Welch, 79 N.W. 500, 76 Minn. 441, 1899 Minn. LEXIS 622 (Mich. 1899).

Opinions

COLLINS, J.

The nature of the agreement (hereinafter called the “lease”) referred to in this opinion will be seen by an examination of Dickinson Co. v. Fitterling, 69 Minn. 162, 71 N. W. 1030. In that case it was held that all of the fixed charges specified in the lease to be paid by the lessees were in fact a part of the rent for the use of the premises, and that the assignee of the lessees — the Dickinson Company, a corporation, which had made an assignment for the [444]*444benefit of its creditors to Welch, this appellant — was liable for part of the rent while in possession.

After the decision in that case, Fitterling brought this action to recover from Welch, as assignee, and out of the assets in his hands as such, the sum of $445.32, as a balance due as rent while the premises were in the assignee’s possession after the assignment, — 21 days in all. The claim was made up of several items, — mainly, the proportionate share of the notes given when the building was erected, secured by a mortgage on the premises, the proportionate share of the interest thereon, and a like share of the taxes, which plaintiff had been compelled to pay. The payment by Welch of $125 on account of rent was acknowledged. A copy of the lease, with copies of the modifications thereof, was made a part of the complaint. As one of his defenses, the assignee alleged in his answer, and as a bar to any recovery, certain proceedings had in the district court in which the assignment proceedings were pending, and that in said proceedings, upon a petition or application made by Fitterling, through which he attempted to obtain an order of the court directing the assignee to pay to him out of the assets of the insolvent a certain sum of money, claimed to be a balance due on account of rent accruing for the same period herein, to which petition ,the assignee filed an answer, a hearing was had by the court, and its order denying the prayer of the- petitioner filed March 10, 1896. It was further alleged that no appeal was taken from the order, and that it stood unaffected and unreversed. It was also alleged that certain subsequent proceedings were taken by Fitterling in respect to his petition and the order, to which' further reference will be made.

There is really no dispute as to these proceedings, the controversy being as to their legal effect. It . appears that instead of bringing an action against the assignee to recover the balance claimed, after the payment of the $125, Fitterling appeared in the assignment proceedings, with a verified petition or application, in which he set out his ownership of the premises; the amount of rent paid per month by the insolvent prior to the assignment; that the use and occupation were reasonably worth that sum; that the assignee occupied the store for one month after the assignment, and had paid ho part of the rental, except the sum of $125. His demand was that the [445]*445assignee be ordered to pay the alleged balance, and for such other relief as the court might deem proper. To this petition the assignee answered, setting up, in part, the conditions of the lease, and alleging that thereunder the assignee was not required to pay as rental for one month a greater sum than the $125, which sum he had paid. It was alleged that under this lease, to which reference was made, a large sum of money became due and payable November 1, 1895, but that Fitterling was not entitled to any part of it until that day; that the latter and one Cunnington had entered into some agreement by which Cunnington had assumed the obligation to pay, which matured November 1; and that the assignee was not indebted in any sum on account of the claim maturing on the day last mentioned.

This answer put in issue the construction to be put on the lease, and was drawn, evidently, upon the theory that the fixed charges were no part of the rent, — an erroneous view, as we have seen. But, whatever the theory might have been, it is obvious that the answer put in issue the claim of Fitterling that under the lease he was entitled to collect from the assignee, as rent, a proportionate part of the fixed charges. At the hearing the lease and the modifications thereof were received in evidence as part of the. case. Subsequently the court made its order, in which, after reciting that the petition was for an order directing the assignee to pay over “certain moneys by way of rent/’ the court denied the petition. Soon after-wards, upon an affidavit in which it was asserted that the sum of $125 paid as before stated was only a small part of the rental to be paid by the assignee, and that the court was mistaken as to the amount which should have been paid for the month of October, an order to show cause why a rehearing of the claim should not be had, and a new order made, finding the facts in controversy between the parties, was obtained by Fitterling’s counsel. The assignee opposed such action, and the court then denied the application for a rehearing.

It appears then that, soon after the assignee ceased to occupy the building, Fitterling, as the owner, voluntarily appeared in the assignment proceedings, and submitted his claim against such assignee for rent during the month of October. He admitted a pay[446]*446ment of $126, but urged that a larger sum was due. It is true that his petition or application was inartistic, and was not so specific as it should have been in respect to the nature of his claim. It ignored the lease, and demanded rental at the rate which it alleged the insolvent had paid, on the ground that the premises were reasonably worth and of the value of that sum. But the answer set up the fact of the lease, and a portion of its terms and conditions. It referred to the lease for greater certainty, and it denied that Fitterling was entitled to any greater sum than $125, which had been paid by the assignee under these terms and conditions. The issue tendered was in fact a construction of the lease, and at the hearing this instrument, with its subsequent modifications, was submitted to the court as part of the evidence. If this lease was not before the court for construction on that occasion, and for the ascertainment of the sum due from the assignee as rental, if anything, we fail to discover what question was presented for adjudication, or why a hearing was had, or what was accomplished by it. If the lease was before the court for construction, that it might be ascertained from it what amount was due as rent while the assignee was in possession, and the claim that there was a balance due was denied or rejected, it amounted to an adjudication that Fitterling’s counsel was wrong in the interpretation he put upon it, and that counsel for the assignee was right, or it determined nothing at all in respect to the controversy.

Fitterling was privileged to select his own mode of presenting his claim and having it adjudicated. He could bring an action either against the assignee in his official capacity, or as an individual alleging a personal liability, or he could proceed, as he did, by petition or complaint, or by motion, as his counsel styles the first step taken, in the pending equitable proceeding. See Nelson v. Kalkhoff, 60 Minn. 305, 62 N. W. 335. But, if defeated in his chosen method of enforcing payment, he was bound by the result. If the method adopted is by a simple motion, and it has been determined, as such, after a full hearing upon a controverted question of fact, the-order disposing of it being appealable, as was the one in question, the determination of the litigated point is an adjudication binding upon the parties, and conclusive upon the [447]*447points passed upon. Truesdale v. Farmers L.

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Bluebook (online)
79 N.W. 500, 76 Minn. 441, 1899 Minn. LEXIS 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitterling-v-welch-minn-1899.