Hoosier Canning Manufacturing Co. v. Donovan

6 Ohio N.P. 431, 9 Ohio Dec. 59, 1897 Ohio Misc. LEXIS 329
CourtPutnam County Court of Common Pleas
DecidedNovember 20, 1897
StatusPublished

This text of 6 Ohio N.P. 431 (Hoosier Canning Manufacturing Co. v. Donovan) is published on Counsel Stack Legal Research, covering Putnam County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoosier Canning Manufacturing Co. v. Donovan, 6 Ohio N.P. 431, 9 Ohio Dec. 59, 1897 Ohio Misc. LEXIS 329 (Ohio Super. Ct. 1897).

Opinion

Sheets, J.

The plaintiff filed its petition in the court of common pleas of Putnam county against one hundred and twelve-persons, seeking to recover a several judgment against each, for the-amount each subscribed to pay toward the erection of a canning factory, the subscriptions ranging in amount'from $25 to $100.

One of the defendants, a subscriber of $100, was served with summons in Putnam county. The remainder of the defendants reside in the counties of Henry and Wood, and were there served with summons.

Motion is made to quash theservicecf summons on all the defendants who were served outside of Putnam county. The ground of the motion for those who subscribed $100 is that this court-has no jurisdiction over their persons.

As tc those who subscribed less than $100 the grounds of the motion are-two-fold.

First: That this oourt has no jurisdiction over their persons.

Second: That this court has no jurisdiction over the subjeot matter— the amount of the recovery sought against each being less than $100.

Section 5009, Revised Statutes, pro-, vides:

“One or more of the persons severally liable on an instrument may be [432]*432included in the same action thereon.”

Section 5038 provides:

“When the action is rightly brought iu any county according to the provisions of chapter five of this division, a summons may be issued to any other county, against one or more of the defendants, at the plaintiff’s request; but no maker or acceptor, or, if the bill is not accepted, no drawer of an instrument for the payment of money only, should be held liable in an action thereon, except on warrant of attorney, in any county other than (the) one in which he, or one cf the join makers, acceptors, or drawers, resides or is summoned.”

From these two sections the following propositions may be deduced:

First: If the contract sued upon is, as to all the parties to it, to be treated as one instrument within the meaning of seotion 5009, then the defendants are properly joined even though they are severally liable.

Second: This court has jurisdiction over the persons, of all the defendants provided they are properly joined in this action.

Whether this court has jurisdiction over the persons of the defendants served outside of Putnam county, depends upon the construction of the contract sued on.

The provisions of this contract in so far as they bear on the questions at issue are substantially as follows:

The plaintiff was to construct and equip for the subscribers thereto, a canning factory of the size, style and •equipment designated therein, for sixty-eight hundred dollarsjduplicates of the same contract to be circulated for subscriptions, and when the full contract price was subscribed, then all the duplicates should be attached and constitute the sole contract between the parties; the subscribers to meet within five days after the date of the contract and appoint an executive committee with full power and authority tc represent the subscribers’ interests frcm time to time, while the plaintiff was building and equipping the factory; the committee also to procure a site for the factory within 'ten days after their appointment, and to accept the factory, when completed, for the subscribers; subscriptions to any amount over and above the contract price, were allowed to be obtained, all of which were to belong to plaintiff until the contract price should be fully paid; after payment in full, the remaining subscriptions uncollected to belong to the subscribers;. each subscriber bound himself to pay the amount subscribed by-him and no more; the subscribers to have the privilege of incorporating among themselves, fixing the capital stook at not less than the amount subscribed, shares to be issued to the subscribers in proportion to their paid up interest.

It is claimed by counsel fcr defendants that section 5009 of the code wcrks no broader change than to allow the joinder of defendants severally liable for the same debt evidenced by the same instrument, such as joining the maker and indorser or guarantor of a promissory note (26 Ohio St., 330). Also that the contract sued upon should be construed just as though each defendant had obligated himself in a separate instrument to pay the sum subscribed by him; that there is no difference in principle between the contract in question than a church subscription,or local aid to a railroad, where all may sign the same paper, and each agrees to pay the sum set opposite his name for the purpose specified.

Conceding, for the purpose of argument, that such subscriptions as last suggested are to be treated in law as separate and independent instruments and ñot falling within the provisions of section 5009 of the code, there is a marked distinction between such instruments and the one at bar. In the case suggested each subscriber agrees to contribute to an enterprise not his own — each subscriber has no interest in what any other subscriber does' — ■ and no joint interest in the property their subscriptions pay for.

By the terms of the contract sued upon all the subscribers purchased a oanning factory of plaintiff and became the joint owners. They not only owed the plaintiff an obligation, but they were mutually obligated to one [433]*433.another to carry out the terms of the contract.

If the contract sued upon is to be regarded as a separate and independent instrument between the plaintiff and each subscriber, then each subscriber has no interest in the performance by any other subscriber cf his contract, and half the subscribers could repudiate their contract while executory, yet the remaining half insist upon its performance by plaintiff, ■ and at the same time it could not recover the sums agreed to be paid by the repudiating subscribers- Each subscriber would be regarded as a separate and independent contractor with ■the plaintiff, possessing full power to -repudiate the contract or insist on performance independently of the wishes of the other subscribers.

Such are some of the necessary consequences if the construction contend■ed for by counsel for defendants is oorrect.

In law all the subscribers are one party, the plaintiff the other. If the -subscribers wish to repudiate the contract while it is executory, they must -all unite; any number less than all will not suffice

From the interest that each sub-scriber has in the performance of the contract by all the other subscribers, ■•it is apparent that the instrument sued upon is joint m all its features, save and except the obligation to pay the contract price. That element only was apportioned severally ^mong the -subscribers.

See Gibbons v. Bente (Minn.) 22 L. R. A. 80, where a similar contract was ■construed, and the same conclusion ■reached.

It follows that the instrument sued upon is one and the same instrument as to all of the defendants within the meaning of section 5009 of the code •unless the other contention of counsel obtains, i. e., that this section was meant to cover only cases where there •is a several liability to pay the same •'debt, evidenced by the instrument.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
6 Ohio N.P. 431, 9 Ohio Dec. 59, 1897 Ohio Misc. LEXIS 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoosier-canning-manufacturing-co-v-donovan-ohctcomplputnam-1897.