Forbes v. Delta Land & Water Co.

193 P. 1097, 57 Utah 200, 1920 Utah LEXIS 91
CourtUtah Supreme Court
DecidedNovember 12, 1920
DocketNo. 3549
StatusPublished
Cited by7 cases

This text of 193 P. 1097 (Forbes v. Delta Land & Water Co.) 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
Forbes v. Delta Land & Water Co., 193 P. 1097, 57 Utah 200, 1920 Utah LEXIS 91 (Utah 1920).

Opinion

CORFMAN, C. J.

[202]*202January 21, 1918, the plaintiff filed ber complaint in this action against the defendants in the district court of Millard county, Utah, alleging as grounds for the recovery of a money judgment that fraudulent representations were made in the sale of certain lands and water stock.

Thereafter the defendant Delta Land & Water Company entered its appearance in the cause and gave notice that on February 11, 1918, it would petition, on the ground of diversity of citizenship, for removal of the cause to the United States District Court for the State of Nevada, for the reason that the plaintiff was a resident of the state of California and the defendant Delta Land & Water Company a resident of Nevada. In accordance with said petition, the cause was removed from the state court to the federal court, and thereafter, August 31, 1918, an order was made by the federal court remanding the cause back to the state court.

October 29, 1918, upon motion of the plaintiff, a hearing was had in the district court for Millard county upon the application of the defendant Delta Land & Water Company to strike certain allegations of the plaintiff’s complaint and also upon demurrers interposed thereto by other defendants, and said motion to strike and demurrers were then denied and the defendants given 30 days’ time in which to answer.

January 22, 1919, the defendants filed their answer. March 29, 1920, after service upon plaintiff’s counsel, a notice was filed in the cause by the defendant Delta Land & Water Company that pursuant to the provisions of Comp. Laws 1917, §§ 7051 and 7052, defendant Delta Land & Water Company required of the plaintiff security for the costs and charges which might arise and be awarded against the plaintiff.

May 22, 1920, the defendant Delta Land & Water Company filed in the court, pursuant to the provisions of said section 7052, a motion to dismiss the plaintiff’s action upon the ground of failure to furnish security for costs in compliance with the defendant’s request and the provisions of the aforesaid sections of the statute.

May 29, 1920, after notice, said motion for dismissal came [203]*203on lor bearing before the district court, whereupon the cause was dismissed without prejudice.

From the order or judgment of dismissal plaintiff appeals. The plaintiff very strenuously insists that the defendant’s demand for security for costs was not seasonably made; that, by reason of lapse of time and the proceedings theretofore had in the cause before a demand was made upon plaintiff, the right or privilege of the defendant to require security for costs under the statute was waived.

It is further contended by the plaintiff that, even if it be found that the defendant’s right to security had not been waived, the court’s dismissal of the action under all of the circumstances attending the case, and in view of the proceedings theretofore had, was premature and reversible error— that plaintiff should have been afforded-further time to comply with the defendant’s demand for security.

Section 7051 of our statute, under which the defendant made demand for security, in part provides:

“When the plaintiff in an action resides out of the state, or is a foreign corporation, security for the costs and charges which may be awarded against such plaintiff may be required by the defendant. When required, all proceedings in the action must be stayed until an undertaking executed by two or more persons is filed with the clerk, to the effect that they will pay such costs and charges as may be awarded against the plaintiff by judgment, or in the progress of the action, not exceeding the sum of $300.

Section 7052 provides:

“After the lapse of thirty days from the service of notice that security is required, * * * the court or judge may order the action to be dismissed.”

It is not contended otherwise than that the plaintiff was a nonresident when security for costs was required of her; nor is there -any contention made that a demand was not made upon notice in conformity with statute. The main contentions of the plaintiff are, as pointed out: First, that the defendant’s demand was not seasonably made, therefore its right or privilege under the statute was waited; secondly, that the dismissal of the action, after the proceedings there[204]*204tofore had, Rested in the sound diseretion of the court, and that in view of the conditions and circumstances surrounding the case and the parties the court by its rulings should not have dismissed the action without first affording the plaintiff further time and opportunity to furnish the security required by the defendant.

As we view the sections of our statute under consideration, their provisions, when properly applied, are in effect most salutary. Doubtless they were designed to preserve the equality of litigants before the court in ill-founded actions brought by a nonresident plaintiff for relief or a recovery against a defendant by affording the latter an efficient means of collecting the costs that may be awarded him. It will be observed that the statute is silent as to what stage of the proceedings in the cause the defendant may exercise his right or privilege of requiring security for costs. The decisions of the American courts as to when the defendant should make application for security under statutes similar to our own are greatly at variance but all hold that the application should be seasonably made. So, too, the statutes of the several states are somewhat dissimilar in their provisions, and this accounts in a great measure for the decisions not being entirely harmonious. But aside from the dissimilarity of the statutes, the decisions have not been harmonious as to what stage of the proceedings in a cause the application may be sustained as being seasonably made. Some of the cases hold that applications for security should be made before answer, and others even before an appearance except for the special purpose of invoking the statute and requiring security. Others have held the application may be made after issues joined or at any time during the trial of the cause, provided the plaintiff is not prejudiced or the orderly procedure of the business of the court interfered with. On the other hand, the privilege may not at any stage of the proceedings of a cause be regarded as an absolute one, and, if delay in making application operates to the prejudice of the opposing party, it has been generally held the right to security has been lost. Such seems to have been the holding of this [205]*205court in tbe case of Sciutti v. Union Pac. Coal Co., 30 Utah, 462, 85 Pac. 1011, 8 Ann. Cas. 942, cited and relied upon in the plaintiff’s brief. In that case this court held, in effect, that by reason of the defendant’s failure to make application for security until after the ease had been called for trial, both parties being present and ready to proceed, and the trial did proceed without defendant insisting upon the proceedings being stayed, the defendant must be held to have waived its privilege under the statute. As we view the decisions of the several jurisdictions, any attempt on our part to harmonize them or to lay down a fixed rule that would be controlling in every case in which the question of laches or the waiver of an applicant’s right to security might arise would be a useless task.

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Cite This Page — Counsel Stack

Bluebook (online)
193 P. 1097, 57 Utah 200, 1920 Utah LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forbes-v-delta-land-water-co-utah-1920.