Knipple v. Lipke

300 N.W. 620, 211 Minn. 238, 137 A.L.R. 783, 1941 Minn. LEXIS 653
CourtSupreme Court of Minnesota
DecidedNovember 7, 1941
DocketNo. 32,956.
StatusPublished
Cited by6 cases

This text of 300 N.W. 620 (Knipple v. Lipke) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knipple v. Lipke, 300 N.W. 620, 211 Minn. 238, 137 A.L.R. 783, 1941 Minn. LEXIS 653 (Mich. 1941).

Opinions

*239 Julius J. Olson, Justice.

This was an action to enforce stockholders’ liability. Defendant’s motion for judgment on the pleadings was granted, judgment entered, and plaintiff appeals.

• The only question presented is whether the limitation provided by Mason St. 1940 Supp. § 8028, is conclusive against plaintiff upon the facts pleaded. The limiting proviso reads:

“provided that no action shall be commenced to collect the amount of any such assessment, unless commenced within two years after the insolvency of the corporation and the appointment of a receiver.”

Plaintiff concedes “that the two-year limitation commenced to run from February 26, 1938, the date of the appointment of the receiver,” but in avoidance claims that by reason of “the delay caused by restraint in perfecting the condition precedent to the action for stock assessment which is the basis of the plaintiff’s contention” the statute has been tolled or suspended. He invokes the long established and well recognized rule stated in St. P. M. & M. Ry. Co. v. Olson, 87 Minn. 117, 120, 91 N. W. 294, 296, 94 A. S. R. 693:

“Whenever a person is prevented from exercising his legal remedy by some paramount authority, the time during which he is thus prevented is not to be counted against him in determining whether the statute of limitation has barred his right, even though the statute makes no specific exception in his favor in such cases.” (Italics supplied.)

In that case plaintiff claimed title to the land in controversy by virtue of its land grant. Defendant had entered into possession and had made application to enter it as a homestead under the federal homestead law. His application ivas denied, but by successive appeals he kept the matter in litigation in the land department for 11 years. That contest ivas decided in plaintiff’s favor. The basis for holding that the 11-year contest period could not be *240 used by defendant in establishing the 15-year limitation in respect to adverse possession under the state law was that (87 Minn. 117, 91 N. W. 295, 94 A. S. R. 693):

“The law * * * commits, in the first instance, all matters affecting the disposition of public lands of the United States, and the adjustment of all private claims thereto, and grants therefor under congressional legislation, to the general land office, under the supervision of the secretary of the interior; and while such matters are pending and undetermined in such department the courts have no jurisdiction thereof(Italics supplied.)

Another case upon which plaintiff relies is United States v. Wiley, 11 Wall. 508, 513, 20 L. ed. 211, 213. In that case the question of the suspension of the statute of limitations arose by reason of the Civil War between the states of our Union. The court held that “the effect of the war was to suspend the running of the statutes of limitation during its continuance [and was applicable], in suits between the inhabitants of the loyal States and the inhabitants of those in rebellion.”

Another case is Weaver v. Davis, 2 Ga. App. 455, 462, 58 S. E. 786, 789, where, as here, the statute was without exceptions. The court in passing upon the statute there relied upon by defendant said that “it is a general rule that limitation laws are subject to no exceptions, unless expressly provided. Notwithstanding this rule, a limited class of exceptions not provided by statute, but arising out of invincible necessity, are universally recognized.” (Italics supplied.)

Many other cases are cited, but we think the three to which we have referred are illustrative of the exceptions to the general rule. Clearly, then, to bring himself within any of the exceptions, plaintiff must show that he was prevented from timely procedure in this suit “by some paramount authority” or by situations “arising out of invincible necessity.” What plaintiff relies upon here is that some of the stockholders had appeared in the proceedings (the pleadings do not show that defendant was one of them) and *241 that much delay occurred; also that the court withheld decision over a period of about six months. Either of these delays, so it is claimed, amounted to a suspension of the statute sufficient in point of time to bring the present suit within the statutory limit. He points out that on March 19, 1938, there was an order made limiting the time for creditors to file claims in the receivership to September 24. On April 25, certain creditors filed their joint claim amounting to $4,550. On May 4, 1938, plaintiff applied for an order for stock assessment of 100 per cent, asserting that the assets of the receivership estate were negligible and that stockholders’ liability had to be enforced. On June 25, certain objecting stockholders appeared and by petition requested the court to continue the hearing until July 23. That application was granted. On July 23, the court issued an order that the hearing on the assessment would take place on the same date as that for hearing upon the validity of the claim filed. Counsel for plaintiff and the objecting stockholders agreed that they would file a stipulation of facts and furnish briefs. There was no time set within which these should be filed. There the matter rested until June 13, 1939, when plaintiff made a motion for an order setting a time for the filing by the objecting stockholders of such stipulation and briefs. Before the date set for the hearing on the motion, counsel for the objectors complied, and the matter was submitted to the court on June 30. Not until January 2, 1940, was the court’s order made allowing the creditors’ claim and directing an assessment upon the stockholders as prayed for. Thereby they were required to pay the assessment within 60 days from that date. Plaintiff was directed to sue each stockholder who failed to pay. The present action was commenced April 9, 1940, obviously beyond the two-year period fixed by statute.

The questions here presented are (1) whether the filing of the objections by the objecting stockholders and the continuances had suspended the statute of limitations as to all or any of them, and (2) whether the court’s delay in making its order for assessment should be considered sufficient ground for suspending the statute. *242 Plaintiff’s position, then, may be thus summarized: If either or both of these delays can be said to be such as prevented him “from exercising his legal remedy by some paramount authority” or that some “invincible necessity” had arisen, the present suit is not barred.

Defendant’s liability as a stockholder is based upon Minn. Const, art. 10, § 3, as it was prior to the 1930 amendment. As amended, so far as here material, it now reads:

“The Legislature shall have power from time to time to provide for, limit and otherwise regulate the liability of stockholders or members of corporations * * * however organized.”

Pursuant to the authority thus granted, the legislature by L. 1931, c. 205, § 2 (Mason St. 1940 Supp. § 8028), enacted the limitation heretofore quoted, and by L. 1931, c. 210 (Mason St. 1940 Supp.

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

Related

Sanchez v. State
816 N.W.2d 550 (Supreme Court of Minnesota, 2012)
Hanna Mining Co. v. InterNorth, Inc.
379 N.W.2d 663 (Court of Appeals of Minnesota, 1986)
Leisure Dynamics, Inc. v. Falstaff Brewing Corp.
298 N.W.2d 33 (Supreme Court of Minnesota, 1980)
Witthuhn v. Durbahn
157 N.W.2d 360 (Supreme Court of Minnesota, 1968)
Versluis v. Town of Haskell, Okl.
154 F.2d 935 (Tenth Circuit, 1946)
Kuhnle v. Swedlund
20 N.W.2d 396 (Supreme Court of Minnesota, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
300 N.W. 620, 211 Minn. 238, 137 A.L.R. 783, 1941 Minn. LEXIS 653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knipple-v-lipke-minn-1941.