Land Development Corporation v. Cannaday

290 P.2d 1087, 77 Idaho 237, 1955 Ida. LEXIS 342
CourtIdaho Supreme Court
DecidedDecember 8, 1955
Docket8283
StatusPublished
Cited by9 cases

This text of 290 P.2d 1087 (Land Development Corporation v. Cannaday) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Land Development Corporation v. Cannaday, 290 P.2d 1087, 77 Idaho 237, 1955 Ida. LEXIS 342 (Idaho 1955).

Opinion

SMITH, Justice.

Respondent, a Washington corporation, commenced this action July 16, 1952, to re *240 cover judgment against appellant upon a promissory note dated December 3, 1948, in the principal sum of $15,500, due without interest one year after date; also for decree of foreclosure of a real property mortgage and a chattel mortgage given the same date as security for payment of the note, and for decree quieting the title to the real and personal properties mortgaged.

Appellant by his answer generally denied the allegations of respondent’s complaint; then affirmatively alleged that respondent was a Washington corporation not authorized to do business in Idaho; that it was engaged in doing business in Idaho on the date of the promissory note and mortgages, and that said instruments were void under the provision of I.C. § 30-505.

This Court, in disposing of a former appeal, 74 Idaho 233, 258 P.2d 976, set aside a judgment of nonsuit on the ground that the evidence before the trial court failed to show that respondent was doing business in Idaho at the time of appellant’s execution and delivery of the promissory note and mortgages to respondent in the State of Washington.

Trial in the first instance, to entry of the judgment of nonsuit, was had before Hon. Everett E. Hunt, a district judge of the eighth judicial district.

Upon remittitur appellant sought and obtained an ex parte order signed by Judge Hunt permitting appellant to file an amended answer and counterclaim, which he did, also without notice to respondent. Respondent, upon discovery thereof, promptly moved to strike such answer and counterclaim, setting forth as grounds therefor in effect that such amended answer and counterclaim was in contravention of the mandate of this Court set out in the previous decision, in that issue in this case had been joined upon respondent’s complaint and appellant’s answer thereto, upon which trial had proceeded through respondent’s casein-chief, and respondent had rested.

Hon. Clay V. Spear, also a district judge of the eighth judicial district, heard respondent’s said motion to strike and thereupon he caused to be entered an order striking appellant’s amended answer and counterclaim.

Trial thereupon went forward before Judge Spear. Respondent did not produce further evidence, but caused to be introduced in evidence a transcript of the proceedings and testimony had before Judge Hunt. Appellant then introduced evidence in support of his defenses, and having rested, respondent introduced evidence in rebuttal. The trial court in due time gave judgment in favor of respondent and decreed foreclosure of the mortgages, from which appellant perfected appeal.

Appellant contends that Judge Spear erred in assuming and maintaining jurisdiction in the case, since appellant objected at the time of resumption of the trial on the merits.

The assignment is not well takeru When respondent’s motion to strike appel *241 lant’s amended answer and counterclaim came on for hearing-, Judge Spear, who presided, stated:

“* * * is it agreeable with counsel * * * that Judge Hunt is not available to hear the present motion or to try the matter on its merits and therefore, that is the reason I am being substituted?” (Emphasis supplied.)

To that, one of appellant’s counsel replied:

“I think either one of you, — either judge in this jurisdiction has jurisdiction of the case * * *. I don't want to oppose the jurisdiction of the Court if that is what you are asking.”

The foregoing is in recognition of the equal and coextensive jurisdiction of Judges Hunt and Spear within the boundaries of the eighth judicial district. I.C. § 1-703.

Appellant’s assignment of error, that the trial court erred in striking his amended answer and counterclaim, is not well taken.

The effect of the reversal of the judgment of nonsuit, upon disposition of the previous appeal, was to grant a new trial. Appellant, upon leave of court, then ivas entitled to amend his pleadings, provided that his amendments tendered any defense additional to his original answer; for that purpose a comparison of the two pleadings is in order.

Appellant, in both his original answer and amended answer, denies the material allegations of respondent’s complaint; alleges that respondent, Washington corporation, was not authorized to do business in Idaho at the time of execution of the promissory note and securing mortgages, and that therefore, those instruments are void. Appellant, in his amended answer, in support of his general denial of any indebtedness owing by him to respondent on the secured promissory note, or otherwise, additionally alleges a contract of October 13, 1948, between appellant and a copartnership, respondent’s predecessor, superseded by a later contract of November 22, 1948, between appellant and respondent. The counterclaim merely set out elements of damage based upon respondent’s alleged violation of the contract.

The trial court’s action, in striking appellant’s amended answer and counterclaim, was proper because the amended answer fails to set forth any defense in addition to appellant’s original answer; particularly, as will hereinafter be pointed out, the contract does not nor does any violation thereof by respondent, as asserted by appellant, absolve or tend to absolve appellant from the secured indebtedness set out in plaintiff’s complaint; and the counterclaim, since it is made to depend upon respondent’s alleged violation of the contract, does not state a defense.

The district judge, during trial of the case, allowed appellant wide latitude in his introduction of evidence, including both the contracts referred to in such amended answer. The terms of the two contracts are almost identical. The later contract, *242 dated November 22, 1948, between appellant and respondent, is the contract hereinafter referred to, since it superseded the one dated October 13, 1948, between appellant and respondent’s predecessor.

Appellant contends that the contract provided for payment of the promissory note in a certain manner and not otherwise, i. e., in terms of building material. The contract provides that respondent pay appellant for “houses ordered and delivered,” in three installments at times designated; then follows the proviso, which appellant urges, that in the event appellant be indebted to respondent, respondent shall withhold the payment of one-third due appellant, upon delivery of material, and credit such sum upon the indebtedness.

Noteworthy, however, the parties, by such contract, set forth two classifications of appellant’s contemplated indebtedness to respondent, i. e., (1), indebtedness occasioned by financial assistance that respondent, at its option, may furnish appellant for plant enlargement or additional plants; and (2), indebtedness occasioned by financial assistance that respondent furnish appellant secured by. pledge of appellant’s real and personal property “which said pledge is additional hereto [the contract] and separate herefrom.” Thus, the parties contemplated additional and separate

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Cite This Page — Counsel Stack

Bluebook (online)
290 P.2d 1087, 77 Idaho 237, 1955 Ida. LEXIS 342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-development-corporation-v-cannaday-idaho-1955.