Fowler v. Brown

71 N.W. 54, 51 Neb. 414, 1897 Neb. LEXIS 325
CourtNebraska Supreme Court
DecidedMay 5, 1897
DocketNo. 7229
StatusPublished
Cited by5 cases

This text of 71 N.W. 54 (Fowler v. Brown) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fowler v. Brown, 71 N.W. 54, 51 Neb. 414, 1897 Neb. LEXIS 325 (Neb. 1897).

Opinion

Post, C. J.

The action out of which this proceeding arose was brought by Stephen Douglas Bayer in the district court for Lancaster county, to foreclose a mortgage executed by George K. Brown and wife in favor of J. R. and L. 0. Richards, to secure certain notes of the said George K. Brown and his brother, Charles T. Brown, payable to the order of the mortgagees named. Among the several parties named as defendants to that action were the said George K. and Charles T. Brown, Benjamin B. Dow, and the plaintiffs in error, Bernard Fowler and the Fowler Elevator Company. Personal service was had upon the Browns and certain other defendants, but return “not found” was made as to the plaintiffs in error and Dow. The last named defendant, however, on the 24th day of February, 1893, and previous to the day named therefor in the summons, filed his answer admitting the existence of the Bayer mortgage and its lien in the order claimed, but denying knowledge of the ownership thereof or the amount due thereon, and asking that the plaintiff be put upon his proof in that regard. Accompanying his answer was a cross-petition for the foreclosure of a mortgage executed by the said George K. Brown and wife upon the premises described in petition to his co-defendant Charles T. Brown, to secure notes payable to the [416]*416latter in the aggregate sum of $15,000. Said notes and mortgage were, according to the allegations of the answering defendant, sold and transferred before maturity, for value, to the plaintiffs in error, Bernard Fowler and the Fowler Elevator Company, from whom they were by said defendant purchased in the usual course of business, before maturity. The prayer of the cross-petition was for an accounting of the amount due on said notes and mortgage, for a decree of foreclosure, and personal judgment for any deficiency remaining after exhausting the proceeds of the mortgaged property. On the 1st day of April, 1893, the plaintiffs in error voluntarily appeared in said cause and filed a disclaimer in the following words:

“Come now the said Fowler Elevator Company and Bernard Fowler, defendants herein, and disclaim any and all right, title, claim, or demand in this action, or to the premises described in the petition filed in this action. Wherefore these defendants pray to be dismissed out of court at the cost of the plaintiff.
“Fowler Elevator Company,
“Per C. H. Fowler, Treasurer.
“Bernard Fowler.”

On May 25, 1893, George K. Brown, Charles T. Brown, and David W. Brown asked leave to answer within ten days, which request was by the court denied, whereupon the two former filed an answer instanter containing a general denial of the allegations of Dow’s cross-petition. On October 3, 1893, David W. Brown and the firm of Charles T. Brown & Brothers asked to be made parties defendant, on the ground that they were necessary parties to the controversy, by reason of an interest therein adverse to Dow and the Fowlers, which motion was on October 13 sustained by the court. On October 16 the several defendants, to-wit, George K. Brown, Charles T. Brown, David W. Brown, and the firm. of Charles T. Brown & Bros., .joined in an answer admitting the execution of the notes and mortgage described in Dow’s cross-[417]*417petition, but denying the latter’s ownership thereof, and alleging that said securities were the property of the Fowlers, the real piarties in interest, and for whose benefit the said cross-petition was prosecuted. It was further alleged, also by way of a cross-petition, that the lots described in the said mortgage were, at the date of the execution of that instrument, owned by the firm of Charles T. Briown & Bros., which was composed of the said George K., Charles T., and David W. Brown, and that the notes executed by the said George K. Brown to his co-defendant Charles T. Brown were, at the time of the transfer thereof by the latter to the Fowlers, the property of said firm; that the Fowlers and the firm of Charles T. Brown & Bros, had, previous to the transaction last mentioned, been engaged together in the buying and selling of grain, and that the notes described in the cross-petition, together with other securities, property of the Browns, had during the course of such business been turned over to the Fowlers and by the latter converted to their own use. It was charged, also, that there was a large sum due Charles T. Brown & Bros, on account of such transaction, including the deals in grain and conversion of said securities. The prayer was for an accounting and judgment against the Fowlers and Dow for the amount found due said firm by reason of the several transactions alleged, and for a decree requiring the surrender by said parties, for cancellation, of the notes above mentioned, with other securities therein particularly described. On October 19 both Bernard Fowler and the Fowler Elevator Company were served with notice in writing of the filing of the last mentioned cross-petition, and that they were by order of court required to answer within ten days thereafter. Service of said notice, as shown by the return, duly verified, was made upon both of said parties by copy in the city of Chicago, and also by leaving a copy thereof at the office and last place of business of the Fowler Elevator Company, in Douglas county, in this state, there being no president, chairman [418]*418of board of directors of said corporation, or other managing officer or agent thereof found within said county. The district court, upon a final hearing of said cause, at the January, 1894, term, found in favor of the Browns as to each of the allegations of their cross-petition, and entered a decree substantially as prayed by them, to which, as appears from the record, “the defendants, Bernard Fowler and the Fowler Elevator Company, except, and pray an appeal, which is hereby allowed and forty days given defendants from the rising of court to prepare their bill of exceptions, and the supersedeas bond herein is fixed in the sum of thirty thousand dollars ($30,000).” The Fowlers, on a subsequent day of the same term, filed separate motions for the vacation of said decree, alleging as a reason therefor that it was as to them without jurisdiction and void, which having been denied, an exception was taken and the cause removed into this court for review. Separate petitions in error have been filed herein by Bernard Fowler and the Fowler Elevator Company, but which are identical in substance and may, for convenience, be considered together.

Counsel are in practical accord upon the proposition that the decisive question in this record is the jurisdiction of the district court, and not the regularity of its proceedings anterior to the final decree. The first inquiry suggested by an examination of that subject relates to the effect upon the rights of the parties hereto of the disclaimer above mentioned. Plaintiffs in error, as they contend, did not, by reason of such disclaimer, waive process and thereby submit themselves to the jurisdiction of the court so as to authorize the awarding of judgment against them personally on the cause of action subsequently alleged in defendant in error’s cross-petition. We understand their argument, so' far as it relates to this branch of the case, to rest upon the assumption that their relation to the suit below as parties defendant ended with their disclaimer; but the force of that reasoning is weakened, if not destroyed, by the implied admission [419]

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Cite This Page — Counsel Stack

Bluebook (online)
71 N.W. 54, 51 Neb. 414, 1897 Neb. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fowler-v-brown-neb-1897.