John Wight and Mondakota Gas Company, a Corporation v. Montana-Dakota Utilities Co., a Corporation

299 F.2d 470, 1962 U.S. App. LEXIS 6183, 1962 Trade Cas. (CCH) 70,212
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 17, 1962
Docket16736
StatusPublished
Cited by9 cases

This text of 299 F.2d 470 (John Wight and Mondakota Gas Company, a Corporation v. Montana-Dakota Utilities Co., a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Wight and Mondakota Gas Company, a Corporation v. Montana-Dakota Utilities Co., a Corporation, 299 F.2d 470, 1962 U.S. App. LEXIS 6183, 1962 Trade Cas. (CCH) 70,212 (9th Cir. 1962).

Opinion

FOLEY, District Judge.

Montana-Dakota Utilities Co., a corporation, appellee here, filed its complaint in the United States District Court for the District of Montana against John Wight, E. A. Wight and Mondakota Gas Company, a corporation, defendants. The complaint set forth five causes of action and jurisdiction of each is based upon diversity of citizenship and the requisite amount in controversy.

The complaint charged appellants with violation of a covenant and malicious prosecution in prosecuting two cases, namely: McClellan, Trustee of Capital Gas Corporation, and John Wight v. Montana-Dakota Utilities Co., U.S.D.C.Minn., 104 F.Supp. 46, hereinafter referred to as McClellan case; and Mondakota Gas Company v. Montana-Dakota Utilities Co., U.S.D.C.Mont., 103 F.Supp. 666, appeal dismissed 9 Cir., 194 F.2d 705, hereinafter referred to as Mondakota case.

Separate answers were filed: That of Mondakota Gas Company which, after certain admissions and denials, asserted seven counterclaims; and the separate answer of John Wight which contained five counterclaims.

From the notice of appeal it appears that appellants John Wight and Mondakota Gas Company appeal from the judgment of Judge Murray entered September 8, 1959, granting plaintiff’s motion to dismiss the first counterclaim of defendant Mondakota Gas Company and the first counterclaim of defendant John Wight and dismissing said counterclaims without leave to amend, and, further, granting plaintiff’s motion for summary judgment as to the second, third, fourth, fifth, sixth and seventh counterclaims of Mondakota Gas Company and the second, third, fourth and fifth counterclaims of John Wight and dismissing all of said counterclaims upon the ground that there is no genuine issue as to any material fact in any of said counterclaims, and that plaintiff is entitled to judgment of *471 dismissal of said counterclaims as a matter of law.

Judge Murray’s Order and Memorandum preceding the entry of the judgment appealed from provides us with a comprehensive statement of the nature of the controversy with which we are dealing and gives us for our consideration the reasoning resulting in the conclusions reached. The Order and Memorandum, after the entitlement of court and cause, is as follows:

“ORDER AND MEMORANDUM

“Plaintiff filed a Motion to Dismiss the First Counterclaim of Mondakota Gas Company and John Wight and for summary judgment of dismissal as to all other counterclaims of Mondakota Gas Company and John Wight. In the oral argument and/or in their brief, counsel for counterclaimants have conceded that the first, second and third counterclaims of Mondakota Gas Company and the first counterclaim of John Wight were vulnerable to the motion and that the second counterclaim of John Wight was not pressed, which leaves for consideration the fourth, fifth, sixth and seventh counterclaims of Mondakota Gas Company and the third, fourth and fifth counterclaims of John Wight.

“Mondakota Gas Company Counterclaims

“Of the remaining four counterclaims of Mondakota Gas Company the fourth and sixth are practically identical and the fifth and seventh are practically identical, the fourth and sixth seeking damages for the alleged failure of Montana Dakota Utilities Co. to operate its pipelines as a common carrier, and the fifth and seventh seeking damages for alleged violations by Montana Dakota Utilities Co. of the anti-trust laws. The only difference between the fourth and sixth counterclaims is that the fourth contains allegations in paragraph (6) thereof with reference to the release obtained by Montana Dakota Utilities Co. in 1939, whereas such allegations are omitted from the sixth counterclaim. Likewise, the fifth counterclaim contains allegations with reference to said release, whereas, such allegations are absent from the seventh counterclaim. Since Mondakota is not a party to the release and was not even in existence at the time it was executed and is not bound by it, the allegations in the fourth and fifth counterclaims with reference to it add nothing, and mean nothing, and are merely surplusage.

“The principal ground of Montana Dakota Utilities Co.’s motion for summary judgment on these four counterclaims is that they have been previously adjudicated in this court in the case of Mondakota Gas Co. vs. Montana Dakota Utilities Co., et al., 103 F.Supp. 666. The issues and parties in that case were identical with the issues and parties involved in the counterclaims under consideration, and this court, acting through Judge Pray granted summary judgment in favor of Montana Dakota Utilities Co. and against Mondakota. Mondakota’s appeal in that case was dismissed by the Court of Appeals without consideration on the merits because the filing fee for the notice of appeal was not timely paid (194 F.2d 705), and certiorari was denied by the Supreme Court. Thereafter, however, in Parissi vs. Telechron Inc., 346 [349] U.S. 46, [75 S.Ct. 577, 99 L.Ed. 867], the Supreme Court reversed the Court of Appeals for the Second Circuit [Parissi v. Foley, 203 F.2d 454] which had dismissed an appeal on facts similar to those in the Mondakota ease, and disapproved the decision of the Ninth Circuit Court of appeals in the Mondakota case. Thereafter Mondakota sought a rehearing on its petition for writ of certiorari which was denied. Thus the decision in the Mondakota ease was never considered on its merits by an appellate court.

“Counsel for Mondakota concedes that the issues presented by their counterclaims are the identical issues decided by Judge Pray in the Mondakota case, but contend that the doctrine of res judicata should not apply because that case was never ruled on on its merits by an appellate court.

“As a general proposition, the operation of a judgment as res judicata is not *472 affected by a mere right of appeal where the appeal has not been taken, or by an appeal which never has been perfected 30-A Am.Jur. ‘Judgments’, Sec. 342.

“Á case closely analogous to this case is U. S. vs. Munsingwear [Inc.], 340 U.S. 36 [71 S.Ct. 104, 95 L.Ed. 36]. In that case the government brought a civil action against the defendant for violation of a price fixing regulation. The action was in two counts, the first for an injunction and the second for treble damages. By agreement the second count was held in abeyance pending trial and final determination of the first count. The District Court found that the defendant’s prices complied with the regulation, and dismissed the first count, and the government appealed. While the appeal was pending, the commodity involved was decontrolled, and the defendant moved for dismissal of the appeal on the ground that the question had become moot, which motion was granted. Thereafter in the District Court the defendant moved for dismissal of the treble damage count on the ground that the unreversed judgment of the District Court in the injunction count was res judicata of the treble damage count, and the District Court granted the motion.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
299 F.2d 470, 1962 U.S. App. LEXIS 6183, 1962 Trade Cas. (CCH) 70,212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-wight-and-mondakota-gas-company-a-corporation-v-montana-dakota-ca9-1962.