Industrial Hospital Ass'n v. Ege

165 P.2d 576, 178 Or. 100, 1946 Ore. LEXIS 113
CourtOregon Supreme Court
DecidedDecember 5, 1945
StatusPublished
Cited by8 cases

This text of 165 P.2d 576 (Industrial Hospital Ass'n v. Ege) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Hospital Ass'n v. Ege, 165 P.2d 576, 178 Or. 100, 1946 Ore. LEXIS 113 (Or. 1945).

Opinion

BRAND, J.

The petition alleges that the Hospital Association entered into a contract with Stebco Inc., a corporation, whereby it agreed to provide medical and hospital services and supplies to the employees of Stebco. The contract provided generally that, if an employee of Stebco should be injured by a third party, the Hospital Association should be subrogated to the rights of the employee against the third party to the extent of the disbursements expended by it for the benefit of the employee under the contract.

Jerry Stroman, a minor and an employee of Stebeo, was injured by a train operated by the Spokane, Portland and Seattle Railway Company and thereafter demanded that the Hospital Association bear his medical and hospital expenses as provided in the contract. The Hospital Association in performance of its contract incurred expense. Thereafter the minor, through his father as his duly appointed guardian ad litem, instituted an action in the Circuit Court of the State of Oregon for Multnomah County against the railway company to recover for injuries and reasonable expense of the medical and hospital services and supplies which had been borne by the Hospital Association pursuant to its contract. The minor recovered judgment in the sum of $7,500, which was satisfied by the payment of said sum into court. Thereafter the funds were paid into the guardianship estate of Jerry C. Stroman, “which guardianship estate was created *105 to receive and administer upon said funds.” Edwin Ege is the guardian.

The Hospital Association demanded payment of the minor and of his guardian, and payment was refused by both. As subrogee it now seeks from the probate court an order directing payment of its claim.

We quote from the order of the trial court sustaining the guardian’s demurrer:

“* * * And it duly appearing that this court, as a court of probate jurisdiction having jurisdiction of guardianship estates, has no jurisdiction of the subject of said petition, but that said matter-asserted in the petition must be asserted in a court of general jurisdiction where the ward may be protected in his right to a jury trial, and the court being fully advised, * * * the demurrer * * is * * * sustained.”

The form of the order on the demurrer indicates an adoption by the court of the guardian’s contention that the petitioner’s claim could only be asserted in a court of general jurisdiction (meaning a circuit court -as distinguished from a probate court) and by an action at law with the right of jury trial. It is undoubtedly true that the ordinary claim for money owing from a minor to his creditor is triable in a circuit court of general jurisdiction as an action at law with the right to trial by jury. But it does not necessarily follow that claims of equitable cognizance may not arise against a minor which would be triable in a court of general jurisdiction sitting in equity without any right to jury trial. The petitioner’s brief indicates that it rests its case, in part at least, on a theory that the minor has recovered from the railroad company money as damages and that a portion thereof in the guardianship estate is held as a trust fund for the petitioner *106 as the subrogee for whose benefit the minor collected and owns the money now in the guardianship estate.

We express no opinion as to whether a suit could be brought in a court of equity upon this theory. The matter is mentioned merely to indicate that the decision of the trial judge to the effect that the court sitting in probate was without jurisdiction is not necessarily based upon the minor’s right to a jury trial in a law action.

The proceeding was brought in the Circuit Court of Multnomah County, a court having the general jurisdiction and powers which are vested in circuit courts generally but in which court also rests all jurisdiction formerly vested in the probate courts of that county. Laws of 1919, Chapter 59, now variously distributed in O. C. L. A. §§ 13-206 to 13-208, and §§ 93-232 to 93-234, 93-310.

As this court has said:

“The jurisdiction of the Circuit Court was not in any respect lessened or restricted by the enactment mentioned. Its powers were increased by the addition of probate jurisdiction.” In re Will of Pittock, 102 Or. 159, 172, 199 P. 633, 17 A. L. R. 218.

See also Bartlett v. Bartlett, (1944) 175 Or. 215, 152 P. (2d) 402; In re Norman’s Estate, 159 Or. 197, 207, 78 P. (2d) 346; Re Faling Estates, 113 Or. 6, 15, 16, 228 P. 821; Re Pittock’s Estate (Leadbetter v. Price), 102 Or. 47, 201 P. 428. However, the broad jurisdiction of such circuit court over subject matter and remedies does not dispense with the necessity of acquiring jurisdiction over the person.

Assuming for the moment that the substance of the allegations in the petition did set forth a cause of action either at law or in equity but did not set forth *107 any claim within probate jurisdiction as such, it is clear that the petitioner would have had no right to proceed in the manner which he adopted; and this is true regardless of the broad powers of the circuit court in which the proceeding was commenced, for the following reasons: (1) Petitioner makes no claim that the proceeding is at law or in equity. Its argument is that a court of probate has jurisdiction of the subject of the petition and that this is not a “civil case” within the meaning of the Oregon Constitution, Article I, § 17. (2) The case was filed in the probate department where it should not be unless it was within the jurisdiction pertaining to probate courts. (3) The procedure employed was not appropriate to a plenary action or suit in a circuit court. The case is entitled “In the Matter of the Guardianship of the Estate of Jerry C. Strornan, a Minor.” It is a petition for an order directing the guardian to pay out money. There is no evidence of the issuance of any process. The only acknowledgment of service of the petition and the only appearance is by “Edward J. Clark, of attorneys for guardian.” The obstacle which alone would prevent the circuit court from entertaining the proceeding as a plenary action or suit is found in the fact that the title to the fund that comprises the guardianship estate is in the minor and not the guardian. 39 C. J. S. 116, Guardian and Ward, § 75. The ward who owns the money has never been served. Therefore, treating the proceeding as a plenary suit or action in a circuit court of general jurisdiction, if such could be done, it would be necessary to dismiss the cause for want of jurisdiction over the real party in interest.

The only remaining theory on which jurisdiction could be based is that the claim was one within the jurisdiction pertaining to probate courts as such and *108 that the procedure in the probate court was adequate to establish jurisdiction therein. This is the issue presented by the brief of petitioner; and in its determination the fact that the proceeding was in Multnomah County, where probate matters are tried by a circuit court, becomes immaterial. The issue would be the same if it had arisen concerning the jurisdiction of a county or probate court prior to 1919.

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Bluebook (online)
165 P.2d 576, 178 Or. 100, 1946 Ore. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-hospital-assn-v-ege-or-1945.