Hugh K. Gale Post No. 2182 Veterans of Foreign Wars v. Norris

201 P.2d 777, 53 N.M. 58
CourtNew Mexico Supreme Court
DecidedJanuary 5, 1949
DocketNo. 5109.
StatusPublished
Cited by33 cases

This text of 201 P.2d 777 (Hugh K. Gale Post No. 2182 Veterans of Foreign Wars v. Norris) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hugh K. Gale Post No. 2182 Veterans of Foreign Wars v. Norris, 201 P.2d 777, 53 N.M. 58 (N.M. 1949).

Opinion

BRICE, Chief Justice.

This is an action in equity instituted to compel the appellant (defendant) as a trustee ex maleficio to “pass the title” of certain land to plaintiff, which plaintiff alleges was bought by defendant in trust for it. From a decree for plaintiff this appeal is prosecuted. The substance of the material facts found by the trial court, or admitted in the pleadings, is as follows:

The plaintiff is a duly organized and existing post of the Veterans of Foreign Wars, numbered 2182, with headquarters in Farmington, San Juan County, New Mexico. Appellant (defendant) was at all material times a member of plaintiff association. While such member and acting as an officer (adjutant) of plaintiff, he was appointed with another (which appointment he accepted) as a committee to locate property to be purchased as a home for plaintiff. The other member, Fred Barnett, talked with the owner of certain lots in the town of Farmington and informed the-defendant that these lots could be purchased for plaintiff. Upon receiving such, information defendant went to the owners,. Dr. and Mrs. J. E. Reece, and represented, to them that he wished to purchase the lots, for plaintiff; that he would advance the-purchase price and hold them for plaintiff until such time as plaintiff could repay him, at which time he would convey the lots to-plaintiff.

Relying upon these representations Dr. Reece and wife, without specific direction from defendant as to whom to make grantees in the deed, executed a deed conveying the lots to defendant and wife, and the survivor, as joint tenants. The defendant paid the purchase price of $1000, an amount considerably less than the market value of the property, and accepted by Dr. Reece and wife upon the distinct understanding that the defendant was acting, and purchasing the lot, for the plaintiff. The plaintiff relied upon the defendant to purchase the property in question for it; left the negotiations with him and made no other effort to acquire the property. After the defendant had acquired the legal title to the property in his own and in his wife’s name as joint tenants, he stated to various persons that it was bought for the benefit of plaintiff and that he would convey the lots to plaintiff as soon as it could repay him the money he had advanced for its purchase.

Demand was made upon defendant for a conveyance of the lots to plaintiff and he was offered the amount of the purchase price together with interest thereon at the rate of six per cent per annum, but defendant refused to convey the lots to plaintiff.

Plaintiff is willing and able to repay to defendant the amount of the purchase price for the lots, together with six percent interest thereon from the date of the purchase to the date of filing plaintiff’s complaint herein, which the cou'rt finds to be just and reasonable.

The court concluded that there was a relation of trust and confidence between defendant and plaintiff; that the defendant by accepting the office of adjutant of plaintiff, and by acting as such, became charged with a position of trust; that by accepting appointment upon the committee to secure suitable property for a home for plaintiff he accepted a position of trust and confidence in all matters pertaining to the negotiations for, and the purchase of, the property in question; that in representing to Dr. and Mrs. Reece that he was acting for the plaintiff in purchasing the property he thereby became a trustee for such purpose. The defendant’s failure and refusal to convey the property to plaintiff is wrongful, illegal, and constitutes a breach of trust; that plaintiff is entitled to receive a conveyance of the property upon the payment of the purchase price of $1000 and six per cent interest per annum from the date of purchase until the date of the filing of plaintiff’s complaint herein.

Thereupon the trial court entered judgment for the plaintiff, in which it was ordered and decreed:

“ * * * that the defendant, Chester A. Norris, be and he hereby is ordered to convey to the plaintiff, Hugh K. Gale Post #2182, Veterans of Foreign Wars, of Farmington, New Mexico, by good and sufficient warranty deed, with abstract of title thereto, Lots 6 to 10 inclusive of Block 11, Original Townsite of Farmington, New Mexico;
“Such conveyance to be made conditionally, only, upon the payment by the said plaintiff to the said defendant of the sum of $1,000 with interest at 6% from the 27th day of April A. D. 1945 to the 7th day of May 1946;
“And the plaintiff is hereby given until August 26, 1947 from the date hereof to tender to the said defendant the above required principal sum, plus interest from the time of judgment at 6'%.”

It is asserted by defendant that the plaintiff was without capacity to sue, in that it is an unincorporated association. This may be true, but the question was not raised by motion before answer, or by answer; and not until the parties had appeared to begin the trial of the case on its merits. The trial court held that it was then too late to entertain the motion to dismiss upon that ground. Sec. 19-101 (12) (h), Rules of Civil Procedure, N. M. Sts. 1941, is as follows:

“A party waives all defenses and objections which he does not present either by motion as hereinbefore provided or, if he has made no motion, in his answer or reply, except (1) that the defense of failure to state a claim upon which relief can be granted and the objection of .failure to state a legal defense to a claim' may also be made by a later pleading, if one is permitted, or by motion for judgment on the pleadings or at the trial on the merits, and except (2) that whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject-matter, the court shall dismiss the action. The objection or defense, if made at the trial, shall then be disposed of as provided by Rule 15(b) in the light of any evidence that may have been received.”

Except when the jurisdiction of the court is involved, a question of the capacity of the plaintiff to sue must be raised by motion or answer. It is waived after answer filed. This was the law before the adoption of our rule cited. Mc-Candless v. Furlaud, 293 U.S. 67, 55 S. Ct. 42, 79 L.Ed. 202; State ex rel. Missouri State Highway Board etc., v. Cox, 318 Mo. 387, 1 S.W.2d 787; 47 C. J. “Parties,” Sec. 345; 39 A.J. “Parties” Sec. 106.

An unincorporated association is not a partnership, although rated as one, insofar as its capacity to sue and be sued is concerned. Chastain v. Baxter, 139 Kan. 381, 31 P.2d 21; 7 C.J.S., Associations, § 1(3).

The trial court was not without jurisdiction, and the judgment is not void. Spaulding Mfg. Co. v. Godbold, 92 Ark. 63, 121 S.W. 1063, 29 L.R.A.,N.S., 282, 135 Am. St. Rep. 168, 19 Ann.Cas. 947; Foreman v. Weil et al., 98 Ala. 495, 12 So. 815; Easterwood v. Burnitt, 59 Tex.Civ.App. 521, 126 S.W. 934; Gilman v. Cosgrove, 22 Cal. 356; Smith v. Chenault, 48 Tex. 455; Stephens v. Turner, 9 Tex.Civ.App. 623, 29 S.W. 937; Frisk v. Reigelman, 75 Wis. 499, 43 N.W. 1117, 44 N.W. 766, 17 Am.St.Rep. 198; 40 A.J. Partnership; Sec. 432.

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201 P.2d 777, 53 N.M. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hugh-k-gale-post-no-2182-veterans-of-foreign-wars-v-norris-nm-1949.