Home Finance Co. v. Balcom

127 P.2d 389, 61 Nev. 301, 1942 Nev. LEXIS 18
CourtNevada Supreme Court
DecidedJuly 7, 1942
Docket3359
StatusPublished
Cited by3 cases

This text of 127 P.2d 389 (Home Finance Co. v. Balcom) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Finance Co. v. Balcom, 127 P.2d 389, 61 Nev. 301, 1942 Nev. LEXIS 18 (Neb. 1942).

Opinion

OPINION

By the Court,

Taber, J.:

This appeal and the certiorari proceeding decided this day (Home Finance Co. v. Eighth Judicial District Court of Nevada, cause No. 3352, Nev., 127 P.(2d) 397). are companion cases, and the following statement is intended to serve for both.

On July 11, 1941, Home Finance Company, a corporation, commenced civil action No. 12212 in the Eighth judicial district court, Clark County, against James Sadler, R. D. Balcom, J. R. McDaniel, Jr., and S. L. Hardy, copartners doing business under the firm name and style of Jimmie Sadler. Six causes of action are alleged in the complaint, each based upon the assignment to plaintiff by defendants, for a valuable consideration, of all their interest as sellers in a separate conditional sales contract. The amounts due from the purchasers of merchandise under said contracts are alleged to be mostly or wholly unpaid. The complaint further alleges that in each assignment the partnership *304 guaranteed payment of the full amount remaining unpaid on the assigned contract, and covenanted that if default should be made in payment of any installment therein provided for, they would pay assignee, on demand, the full amount then unpaid. Judgment is prayed against defendants and each of them for the respective amounts due from the purchasers under said contracts, together with interest and costs of suit.

On July 18, 1941, defendants joined in filing a general demurrer to said complaint. On July 22, 1941, Harry H. Austin was substituted in place of Harold M. Morse as attorney for defendant Sadler, and on the same day entered a separate appearance for him and filed a general demurrer to said complaint in his behalf. On August 7, 1941, the demurrers of all defendants were overruled, and they were given ten days to answer. At the same time leave was granted defendant Sadler to file a “cross complaint or counter claims or cross-relief.” By stipulation, August 11, 1941, the defendants represented by Mr. Morse were given until and including September 1, 1941, to answer and further plead to the complaint.

On August 16, 1941, defendant Sadler filed his separate answer to the complaint, and his cross complaint against defendants Balcom, McDaniel and Hardy. His answer alleges, in part, that the partnership was dissolved on December 18, 1940, at which time he surrendered and delivered to the three other partners all the books of account of the partnership, and that he no longer has access to them. In his cross complaint against the other defendants, he alleges, among other things, that all the indebtedness mentioned in the plaintiff’s complaint was contracted by the partnership, appeared upon the books of the firm, and was known to all the defendants or could have been known by them by an inspection of the books. The cross complaint further alleges that on December 18, 1940, the four partners entered into an agreement in writing forever *305 dissolving the partnership, and that by the terms of said agreement defendants Balcom, McDaniel and Hardy agreed to pay all the indebtedness of the partnership, excepting only such bills as might have been contracted or incurred in the name of the firm by defendant Sadler without the knowledge of the other partners. '

On August 30, 1941, Balcom, McDaniel and Hardy commenced a separate action, No. 12469, against Home Finance Company and A. W. Blackman in said district court. On September 2, 1941, in action No. 12212, there was filed an order of the district judge dated August 30, 1941, giving defendants in that case ten days from and after final judgment by the trial court in action No. 12469 within which to answer to the merits in case No. 12212. A motion to vacate and annul this order having been thereafter denied by the trial court, Home Finance Company, on October 29, 1941, filed its petition for writ of certiorari in this court (case No. 3352) praying that said order extending time to answer be reviewed and annulled.

In said district court action No. 12469 plaintiffs, on, September 3, 1941, filed a verified amended complaint. On the basis of this complaint and the filing of an undertaking the trial court, on the ex parte application of plaintiffs, granted an injunction pendente lite restraining the defendants, until further order of court, from procuring the entry of defaults in, or the prosecution of, any of the legal actions referred to in plaintiffs’ complaint, or instituting any other similar legal action or actions. The injunction further restrained defendants from removing any of their assets beyond the jurisdiction of the trial court while the injunction remains in effect.

On September 12, 1941, defendants in said action No. 12469 separately filed general and special demurrers to the amended complaint, and noticed motions for orders dissolving said injunction. On October 21, 1941, the demurrers were sustained, and plaintiffs given ten *306 days to file a further amended complaint. On the same day, October 21,1941, the motions to dissolve the injunction were denied. Defendants, on November 21, 1941, appealed to this court from the order denying said motions.

After said application for writ of certiorari was filed (cause No. .3352 in this court), and after this appeal was perfected (cause No. 3359), a second amended complaint was filed in district court action No. 12469. There is no copy of this complaint in the record certified to this court in said certiorari proceeding, nor does a copy of it appear in the record on this appeal. A full copy, however, is set forth both in respondent’s answering brief in the certiorari proceeding and in respondents’ answering brief on this appeal. In the certiorari proceeding petitioner, in its reply brief, says, “petitioner certainly has no objection to this second amended complaint being before this court if counsel for respondents think it will help them or be in any way enlightening to this court.” Likewise, in their reply brief on this appeal, appellants say: “We might very properly raise the point that such second amended complaint should not be considered; but we carefully do not do so. On the contrary, we ask this court to treat such second amended complaint as an admission by respondents against interest. By so doing, not only will certain omissions of the amended complaint be filled in and certain obscurities and ambiguities removed, but by such admission by respondents, certain additional reasons are brought before this court why the injunction in this case was improvidently issued and why it was highly prejudicial for the lower court to deny our motion to dissolve.”

Neither in the original complaint in district court action No. 12469 nor in the first amended complaint therein was James Sadler joined as a plaintiff or made a defendant; in the second amended complaint he is made a party defendant along with Home Finance Company and Blackman.

*307 Following is a summary of the pertinent allegations in said second amended complaint:

Plaintiffs were formerly associated with defendant Sadler in the partnership known as “Jimmie Sadler Electric Appliances,” the business of which has been discontinued and all its assets disposed of.

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Bluebook (online)
127 P.2d 389, 61 Nev. 301, 1942 Nev. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-finance-co-v-balcom-nev-1942.