Frederickson v. Nye

144 N.E. 299, 110 Ohio St. 459, 110 Ohio St. (N.S.) 459, 2 Ohio Law. Abs. 390, 35 A.L.R. 1163, 1924 Ohio LEXIS 314
CourtOhio Supreme Court
DecidedJune 3, 1924
Docket18120
StatusPublished
Cited by45 cases

This text of 144 N.E. 299 (Frederickson v. Nye) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frederickson v. Nye, 144 N.E. 299, 110 Ohio St. 459, 110 Ohio St. (N.S.) 459, 2 Ohio Law. Abs. 390, 35 A.L.R. 1163, 1924 Ohio LEXIS 314 (Ohio 1924).

Opinions

Hay, J.

Two questions are involved in a determination of this case: First: Was there such an election of remedial rights by the Nyes in filing and pressing the Seneca county case as prevents them from asserting their claims in equity in the Hancock county case? Second: If there was such an election, which controls as to the Morgans, does the same operate as to their grantee, Frederickson?

The petition filed in the instant case, in Han *464 cock county, among other averments, pleads as follows:

“The legal title to which now stands in the name of the defendant, Elbin Morgan, but which in equity, in view of said fraud these plaintiffs furnished the consideration for its purchase, and the defendants and neither of them have any just or equitable right to the same or any part or any interest therein. * * * Wherefore, plaintiffs pray that a trust for them be established and declared in said Findlay real estate above described and enforced for their protection, and they be decreed to be the real owners of the same.”

In the petition of plaintiffs filed in the action in Seneca county there appear, among other declarations, the following averments:

“These plaintiffs relying upon the representations as to the worth of the said 'defendants, and the value of said farm, were induced to and did sell the said property, real estate, and goods of the value of $12,500 to the said Elbin Morgan, no part of which said sum has been paid * * * and Elbin Morgan immediately went to Findlay and conveyed plaintiff’s property in Hessville, to one Harry D. Culler, and received in consideration for the real estate, property and goods which these plaintiffs had conveyed to the defendants a certain business block in the city of Findlay, Ohio. * * *
“Plaintiffs say that by reason of the facts herein alleged they have been defrauded in the sum of $10,000 together with interest thereon from the 10th day of January, 1922, for which amount they pray judgment. Wherefore, plaintiffs pray that they may have judgment in the sum of $10,000 with *465 interest * * * and that a restraining order issue from this court temporarily restraining and enjoining the defendants and each of them from disposing of, conveying, selling or incumbering the property belonging in the said defendants * * * and that these plaintiffs may be first paid the same sum of $10,000 coming into the hands of the said receiver.”

It is apparent that the petition in the Hancock county case avers the legal title to the Findlay block as in the Morgans and Frederickson, and the equitable title as in the Nyes, and that the action was clearly one in equity seeking to establish a constructive trust in the property in question in favor of the Nyes.

It is equally apparent that the action in the Seneca county ease avers the title to the property, both legal and equitable, as in the Morgans, and what the plaintiffs wanted was a judgment for $10,000, the amount of which they claimed to have been defrauded, and that the property should be sequestered or sold to pay the same. This was an action at law in deceit with a prayer for money judgment.

"Were these remedial rights which the Nyes were seeking to establish so inconsistent that the selection of one would be a bar to the assertion of the other?

It is to be noted that tinder the theory of one case, to wit, the law action in deceit (Seneca county), the title to the property is averred to be in the Morgans. In the other ease, while the legal title is conceded to be in the Morgans and their grantee, the equitable title is claimed to be in the Nyes.

Manifestly the Nyes could not claim that the *466 property belonged to tbe defendants below and ask a money judgment and at the same time maintain an action upon the basis that the property did not* belong to the defendants below, but in equity belonged to them.

At some stage the Nyes must necessarily be put to their election. An election of remedial rights is a choice made with knowledge between two inconsistent substantive rights, either of which may be instituted at the instance .of the chooser, who cannot, however, enjoy both. Such an election goes not to the form, but to the substance, affecting some right of title selected. Such a choice, therefore, discards the alternative inconsistent right or claim.

An election of- remedies or forms of action or procedure does not necessarily involve a choice as between two existing substantive rights. ■ A form of action or remedy is but a means of administering justice rather than an end in itself. There is, therefore, a marked distinction between an election between remedies or forms of action and an election of remedial rights. One goes to the substance and the other to the form. Where the remedies afforded are inconsistent, it is the election of one that bars the other; where- they are consistent, it is the satisfaction which operates as a bar. It is the inconsistency of the demands that makes the election of one remedial right an estoppel against the assertion, of the other, and not the fact that the forms of action are different.

The theory of the ¡Seneca county case was that the title to the property was in the Morgans and *467 their grantee, and a money judgment was the relief sought. It amounted to an affirmance of the contract of conveyance of the properties in question. On the other hand the theory of the Hancock county case, being the action in equity, was that of disaffirmance of the contract of conveyance of the property, and assertion that while the legal title passed the equitable title was in the Nyes.

Now, a remedy based on the theory of an affirmance of the contract, or other transaction, is inconsistent with a remedy arising out of the same facts based on the theory of its disaffirmance or rescission, so that the election of either must be an abandonment of the other.

As we view the case presented, in order to make the two cases brought by the Nyes consistent, the Seneca county case must be treated and regarded as an action in equity for relief upon the ground of fraud, but unfortunately the averments of the petition charging that the property belonged to the defendants and asking for a judgment in the sum of $10,000 make the case one at law as an action in deceit based on fraud.

It is true that there is a prayer for injunction and a receiver, but this does not make the action one in equity. As is said by Matthias, J., in Complete Building Show Co. v. Albertson, 99 Ohio St., 11, 15, 121 N. E., 817, 818:

“But an action for the recovery of money as a debt or as damages is essentially an action at law and cannot be converted into a suit in equity by the mere use of words and phrases usually found onlv in pleadings in equitable actions, no matter how *468 often repeated nor the extent of variation of such allegations.

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Cite This Page — Counsel Stack

Bluebook (online)
144 N.E. 299, 110 Ohio St. 459, 110 Ohio St. (N.S.) 459, 2 Ohio Law. Abs. 390, 35 A.L.R. 1163, 1924 Ohio LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frederickson-v-nye-ohio-1924.