Franklin v. Dorsey-Jackson Chevrolet Co.

20 So. 2d 220, 246 Ala. 245, 157 A.L.R. 154, 1944 Ala. LEXIS 469
CourtSupreme Court of Alabama
DecidedDecember 14, 1944
Docket4 Div. 355.
StatusPublished
Cited by9 cases

This text of 20 So. 2d 220 (Franklin v. Dorsey-Jackson Chevrolet Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin v. Dorsey-Jackson Chevrolet Co., 20 So. 2d 220, 246 Ala. 245, 157 A.L.R. 154, 1944 Ala. LEXIS 469 (Ala. 1944).

Opinion

STAKELY, Justice.

These are intervention proceedings. The question presented for review is the right vel non of Ellis W. Franklin to intervene in a suit filed in the Circuit Court of Covington County by C. E. Dorsey and J. M. Jackson, partners doing business as Dorsey-Jackson Chevrolet Company, against National Surety Corporation, a corporation. The suit, brought on the law side of the court, seeks recovery against the defendant by reason of a bond in the penal sum of $1800 executed by the defendant, with condition to indemnify the plaintiff against losses of money or personal property caused by larceny, embezzlement, misappropriation, etc., on the part of Ellis W. Franklin, as plaintiff’s bookkeeper, - during the period covered by the bond. The losses alleged to have been so suffered by the plaintiff are alleged to aggregate $4,480.05. The recovery sought by the plaintiff against the defendant is $1800, the penal amount of the bond.

Ellis W. Franklin filed a petition in the suit for the purpose of being allowed to-intervene in the suit, alleging in substance that as a part of the consideration for the execution of the bond — the bond was executed only by the National Surety Corporation — he signed a written application for the bond, a copy thereof being attached to the petition. Among other provisions,, the application contained the following:

“1. The undersigned hereby agrees to indemnify the National Surety Corporation, hereinafter called Corporation, its. successors and assigns, against all loss, liability, costs, damages, attorneys’ fees and expenses which the Corporation may sustain or incur in consequence of executing-the coverage herein applied for or any renewal thereof or any other coverage in behalf of the undersigned, in making any investigation on account of any such coverage, in prosecuting or defending any action that may be brought in connection therewith, and in enforcing any of the agreements herein contained.
“2. The Corporation shall have the right to adjust, settle or compromise any claim under any such bond, unless the-undersigned shall request the Corporation to litigate such claim and shall deposit, with the Corporation collateral satisfactory to it in kind and amount.
“3. In event the Corporation shall, in-good faith, make any payment on account of any claim under any such coverage or on account of costs, damages, attorneys’ fees or expenses, an itemized statement, thereof, sworn to by an officer of the Corporation, or the voucher or vouchers or other evidence of such payment, shall be prima facie evidence of the fact and extent of the liability of the undersigned in any claim or suit hereunder.”

The petition also in substance shows, that when petitioner was notified by the defendant that claim had been made under the bond, he demanded of the defendant *247 that' no settlement be made and deposited with the defendant collateral satisfactory to the defendant; that he has employed an attorney at his own expense to defend the defendant in the present suit; that he is financially responsible and that in the event judgment is recovered against the defendant ánd payment thereof made by the defendant, petitioner will be directly liable to defendant; that the rights and •interests of petitioner will be greatly prejudiced if he is not permitted to intervene; that he has an interest in the matter of this litigation and is interested in the success of the defendant.

Plaintiffs demurred to the petition taking the position in substance that the interest of petitioner in the litigation is not sufficiently shown; that the alleged liability of petitioner to defendant in case plaintiffs recover a judgment is of no concern to the plaintiffs; that it does not appear that the petitioner has a cause of action against either plaintiffs or defendant and the mere right or fact of intervention does not within itself create a cause of action; that no judgment is sought by the plaintiffs against petitioner arid the liability or non-liability of defendant upon the bond sued on does not within itself .give an actual interest to petitioner in the litigation; that there is no privity between the defendant and petitioner.

The court sustained the demurrers to the petition, denied Ellis W. Franklin the right to intervene, and dismissed the petition. From this judgment, Ellis W. Franklin brings this appeal and with his appeal submits also on a motion for mandamus.

The right of intervention, if any, in the case at bar is governed by the 'following statute:

“Any person may, before the trial, intervene in an action or proceeding, who has an interest in the matter in litigation, in the success of either of the parties, or an interest against both. An intervention takes place when a third person is permitted to become a party to an .action or proceeding between other persons, either by joining the plaintiff in •claiming what is sought by the complaint, or by uniting with the defendant in resisting the claims of the plaintiff, or by demanding anything adversely to both the plaintiff and the defendant, and is made by complaint, setting forth the ground upon which the intervention rests, filed by leave •of the court and served upon the parties to the action or proceeding who have not appeared and upon the attorneys of the parties who have appeared, who may answer or demur to it as if it were an original complaint.” § 247, Title 7, Code 1940.

There can be no doubt that under the law in this state, prior to the adoption of the foregoing statute, Ellis W. Franklin had no right of intervention. Ex parte Proskauer, 59 Ala. 194. Has the statute changed the situation?

Counsel urge that the statute does not create a cause of action or give a right of intervention, when the party seeking to intervene otherwise has no cause of action, citing Fisher v. Bankers’ Fire & Marine Ins. Co., 229 Ala. 173, 155 So. 538, and Dodd v. Deepwater Coal & Iron Co., 233 Ala. 392, 171 So. 732. It is insisted that since Ellis W. Franklin did not execute the bond sued on, the liability, if any, of the defendant to the plaintiffs is 'an independent liability with which Ellis W. Franklin has no concern or interest. In construing the statute this court has said :

“Our statute (section 9485, Code [Code 1940, Tit. 7, § 247] has been held as merely cumulative to the common-law remedy of intervention (Awbrey v. Estes, 216 Ala. 66, 112 So. 529; Gravely v. Phillips, 23 Ala.App. 471, 127 So. 248, 249), and, as said in the latter case, citing 31 Cyc. 521: ‘The petition for intervention must by proper averments show interest of the applicant in the pending litigation and should contain facts sufficient to show that the intervener is entitled to the relief sought.’ To like effect -is the language of the court in Smith v. Gale, 144 U.S. 509, 12 S.Ct. 674, 676, 36 L.Ed. 521: ‘The intervention must be not only to protect the direct and immediate interest of the intervener in a suit, but she is bound to make that interest appear by proper allegations in her petition.’ ” Cortner v. Galyon, 223 Ala. 405, 137 So. 30, 31.

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Bluebook (online)
20 So. 2d 220, 246 Ala. 245, 157 A.L.R. 154, 1944 Ala. LEXIS 469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-v-dorsey-jackson-chevrolet-co-ala-1944.