Hanson v. Hansen

329 P.2d 791, 134 Mont. 290, 1958 Mont. LEXIS 25
CourtMontana Supreme Court
DecidedSeptember 15, 1958
Docket9751
StatusPublished
Cited by11 cases

This text of 329 P.2d 791 (Hanson v. Hansen) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanson v. Hansen, 329 P.2d 791, 134 Mont. 290, 1958 Mont. LEXIS 25 (Mo. 1958).

Opinions

MR. JUSTICE BOTTOMLY:

The appeal in this cause arises from the following facts. Dave and Ben Hansen were brothers doing business as partners. Managerial dificulties arose with the result that Dave Hansen brought an accounting action against Ben Hansen to establish their mutual obligations and to settle the division of the partnership property between themselves. From the judgment rendered in the district court in that action, Ben Han[292]*292sen appealed. That appeal was decided by this court in the case of Hansen v. Hansen, 130 Mont. 175, 297 Pac. (2d) 879. Rehearing on the appeal was denied June 11, 1956. That decision, right or wrong, settled the law as regarded the accounting action between the parties, is the law of the case, and became the final judgment of this court.

Subsequent to the decision of this court, Ben Hansen filed a motion for an order of restitution in the district court. This motion was based upon the following facts: In the district court action, judgment had been rendered ordering dissolution of the partnership, sale of its assets and a division between Dave Hansen and Ben Hansen of the balance remaining after payment of the debts of the partnership and the expenses of receivership and sale, in the ratio of two-thirds to Dave Hansen and one-third to Ben Hansen. The partnership when organized had been on a fifty-fifty basis and had not been changed. No stay of execution had been obtained from the judgment of the district court. After judgment, and prior to the appeal from that judgment, the receiver who had been appointed sold the partnership business to Dave Hansen, filed an accounting of his receivership, and paid into the district court the amount (one-third) deemed to be due from his accounting to Ben Hansen by the judgment of the district court. This amount paid in was subject to withdrawal by Ben Hansen. The receiver was discharged.

Thus Dave Hansen, prior to appeal, was given complete control and dominion over all the partnership property, subject to his promise to pay certain outstanding debts, and less that amount or one-third of the proceeds of sale which had been paid into the district court which was considered sufficient to satisfy the district court judgment in respect to Ben Hansen. Ben Hansen then appealed to this court, and the district court judgment was by that appeal modified in the following particulars: It was held and determined that the partnership basis of showing profits and losses was fifty percent to Dave, and fifty percent to Ben, that this ratio still [293]*293applied and must control in the final disposition of the partnership property. It was held that Dave had withdrawn or held back for his own benefit net profits of the business totaling $7,986.30 during the period July 1949 to March 21, 1952; that Dave therefore should be surcharged with one-half of such amount as Ben’s share; that in dividing the assets held in the hands of the receiver there should be paid all the debts of the partnership, the reasonable and legitimate expense of the receivership and its costs lawfully incurred; that Dave’s share of the proceeds were to be surcharged in the amount of $3,993.15 and any proceeds thereafter remaining were to be divided equally between Dave and Ben.

After the district court’s judgment and prior to the judgment on appeal, Dave Hansen, then being in possession and control of the partnership property consisting of the real estate and business buildings thereon and the business therein, entered into a contract of sale with Herbert Winslow and Ruby Winslow of the said property of the former partnership. Such was the status of the property formerly owned by the partnership when the judgment of this court on appeal became final on June 11, 1956.

It was said by this court in Lasby v. Burgess, 93 Mont. 349, 353, 18 Pac. (2d) 1104, 1105;

“When judgment is rendered upon appeal and remittitur is issued and filed, the duty of the clerk below is prescribed by section 9753, Revised Codes 1921 [now R.C.M. 1947, section 93-8025]. When the judgment in the court below is entered in obedience of the judgment and order of this court as contained in the remittitur, the judgment becomes that of this court. Kimpton v. Jubilee Placer Min. Co., 22 Mont. 107, 55 Pac. 918.

“When the remittitur of this court was filed with the clerk of the district court, ‘there was then nothing remaining to be done but the entry of that judgment, and the duty of making such entry is imposed by the statute [sec. 9753, Rev. Codes 1921] upon the clerk of the district court, and not upon the [294]*294court or judge.’ State ex rel. Dolenty v. District Court, 42 Mont. 170, 111 Pac. 731, 732.”

The judgment of this court when entered by the district court clerk becomes the final judgment of this court. Compare State ex rel. United States Fidelity & Guaranty Co. of Baltimore, Md. v. District Court, 77 Mont. 594, 251 Pac. 1061; Re Sanford Fork & Tool Co., 160 U.S. 247, 16 S. Ct. 291, 40 L. Ed. 414, and cases cited therein.

On June 30, 1956, a motion for an order of restitution was filed in the district court by Ben Hansen in conformity with the decision of this court. Such motion was denied, and from this special order after final judgment Ben Hansen brings this appeal.

The primary question presented here is did the district court err in refusing the motion for an order of restitution?

In Am. Jur., Appeal and Error, section 1242, at page 739, the general rule of restitution is set forth as follows:

“The general principle is well settled that a subsisting judgment of a court which had jurisdiction of the parties and the subject-matter is binding, at least on all who were parties, and constitutes a sufficient justification for all acts done in its enforcement until it is reversed or set aside by competent authority. Nor does the perfecting of proceedings to review the judgment of itself ordinarily suspend the operation or stay the execution of the judgment or order being reviewed; generally, when a case is being reveiwed, the respondent may, unless stayed, proceed to enforce his judgment or order. But all proceedings taken under the judgment are dependent for their validity upon the judgment being sustained. When it is reversed or set aside, the law raises an obligation against the party to the record who has received the benefit thereof to make restitution to the other party of any and all money or property received under it, or of its value or equivalent, in money in case the recipient asserts title to the thing received or has converted it to his own use. In other words, a party against whom an erroneous judgment or decree has been ear[295]*295ried into effect is entitled, in the event of a reversal, to be restored by his adversary to that which he had lost thereby, but no further liability should in any case be imposed.” Emphasis supplied.

See also Restatement, Restitution, Chapter 3, section 74, at page 302, which sets out the rule as follows:

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Hanson v. Hansen
329 P.2d 791 (Montana Supreme Court, 1958)

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Bluebook (online)
329 P.2d 791, 134 Mont. 290, 1958 Mont. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanson-v-hansen-mont-1958.