Lohr v. Honsinger

128 N.W. 1035, 20 N.D. 500, 1910 N.D. LEXIS 121
CourtNorth Dakota Supreme Court
DecidedNovember 23, 1910
StatusPublished
Cited by1 cases

This text of 128 N.W. 1035 (Lohr v. Honsinger) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lohr v. Honsinger, 128 N.W. 1035, 20 N.D. 500, 1910 N.D. LEXIS 121 (N.D. 1910).

Opinions

Carmody, J.

The Vermont Building Company was a corporation of the state of Iowa. The capital stock consisted of $60,000 common stock, and $35,000 preferred stock. Appellant owned $18,000 par value of the preferred stock and $59,100 par value of the common stock. The balance of the preferred stock, $11,000 par value, was owned by residents of Iowa, Vermont, and New York. Appellant was a resident of the state of New York. One of the purposes for which the corporation was promoted was the construction of a Masonic Block in the city of Sioux City, Iowa. In September, 1904, the sole property of the Vermont Building Company was an equity of redemption in the Masonic Block, and about $14,000 in money, in the possession of the treasurer in Sioux City. A mortgage on the Masonic Block had been foreclosed, and the year of redemption would expire about November 1, 1904. No redemption was made. Appellant and S. L. [501]*501Wheeler, an attorney residing at Plattsburgh, New York, and who had been consulted by appellant regarding the affairs of the Vermont Building Company, went to Sioux City on September 12, 1904, for the purpose of holding the annual meeting of the stockholders of such company, and electing officers and directors. Appellant, his wife, Henrietta Honsinger, and Wheeler were elected directors. Appellant was elected president and Wheeler treasurer. Appellant and Wheeler were at Sioux City from September 12th, to September 16th, 1904. The money, $14,000, was turned over to Wheeler as treasurer, and he took the same with him to New York, leaving no property belonging to such company in the state of Iowa. The plaintiff was a member of the firm of Lohr, Gardner, & Lohr, practising law at Sioux City, Iowa. This firm had been attorneys for the Vermont Building Company for several years, but plaintiff had never attended to any business for the company or appellant. The business had always been attended to by a brother of said plaintiff, W. F. Lohr, a member of said firm, who was also secretary and treasurer of the Vermont Building Company, but who was absent from Sioux City and sick while appellant and Wheeler were there. On September 16, 1904, a complete settlement was had between the plaintiff and appellant and the Vermont Building Company. At that time appellant purchased from respondent five shares of stock of the company, belonging to respondent’s brother, W. F. Lohr, for the sum of $400. On the same day respondent gave appellant his negotiable promissory note, for $500, payable on or before two years from date. This note was, before maturity, sold to the City National Bank of Plattsburgh, New York, and suit was commenced by the bank against respondent in the state courts of Iowa, and was pending at the time of the commencement and trial of this action. Appellant and Wheeler both testified that there was but $13,100 on hand on the 16th of September, 1904, and that the $400 worth of stock and the promissory note of $500 were turned over to appellant to make up the sum of $14,000, and .that appellant paid Wheeler, as treasurer, $900 for the note, and the stock owned by W. F. Lohr. Bespondent testified that appellant paid him $500 as a retainer; that appellant said he was suspicious of lawyers, and did not want to pay the $500 in cash, as he was afraid the legal services would not be performed, and that he (respondent) gave appellant his $500 [502]*502note as in the nature of a personal bond that he (respondent) would perform the legal services for appellant. Respondent testified that while appellant was in Sioux City, in September, 1904, he employed respondent to look after any legal business that might come up, as appellant expected' litigation on account of his removing the assets of the Vermont Building Company from Iowa to New York. This is denied by appellant and Wheeler. Respondent further testified that appellant was trying to figure some way to convert this $14,000 to his own use, either by using it to pay him- back salary or to retire the preferred stock owned by him, and that he consulted respondent about this matter. This is also denied by appellant. About December, 1904, one Leroy Kent, a stockholder in the Vermont Building Company, commenced an action against appellant and the Vermont Building Company in the United States circuit court for the northern distinct of Iowa, asking for the appointment of a receiver for the Building Company. No service was made on appellant, except that a paper purporting' to be a summons was served on him in New York. He made no appearance in the action. Plaintiff, who owned one share of the common stock of the corporation, intervened and tried to get the action dismissed. He testified that he intervened at the request of appellant and said Wheeler. A receiver for the Building Company was appointed by the United States circuit court for the northern district of Iowa, who undertook to get possession of the assets by proceedings in the United States Circuit court for the Northern district of New York, which court held that the receiver was not legally appointed. An action was commenced by George H. Hollister, receiver of the Farmers’ Trust Company, against the Vermont Building Company. The firm "of which plaintiff was a member were the attorneys for the plaintiff in that action. Afterwards the claim was sold to a man named McKenzie Stewart, who was a son-in-law of appellant. Part of the services claimed to have been rendered by respondent for appellant were in connection'with this suit. After the action hereinbefore mentioned' was commenced by the Bank of Plattsburgh, New York, against respondent, he came to Fargo, North Dakota, and commenced this action against appellant, attached some real estate, and obtained service on appellant. The account on which respondent brought this action is as follows:

[503]*5031904.

Sept. 16, To services investigting matter of Honsinger’s salary as president of Vermont Building Company and advice regarding same .................................. $50.00

Sept. 16, To counsel and advice regarding claim of Farmers’. Trust Co. v. Vermont Building Co. etc................ 100.00

Sept. 16, To counsel and advice regarding priority of preferred stock held by Honsinger ..................... 100.00

Sept. 17, To services searching records, etc., regarding suit of G. H. Hollister v. Vermont Building Co. ........... 50.00

Sept. 25, To services in investigating status of preferred stock of Vermont Building Co.....,...........'...... 100.00

Oct. 27, To services regarding redemption of Masonic Block from sheriff’s sale ..............................• 100.00

Oct. 30, To services in attempting sale of Masonic Block and of Honsinger’s stock in Vermont Building Co.......... 100.00

Dec. 19, To services examining records, etc., in Federal Court in case of Kent v. Honsinger et al............... 50.00

Dec. 22, To services in Kent v. Honsinger et al......... 50.00

1905.

Feb. 4, To services preparing application for permission to intervene in Kent v. Honsinger...................,.. 50.00

Feb. 4, To services preparing motion to dismiss action in ■ Kent v. Honsinger et al............................ 50.00

June 1, To services preparing brief and examining authorities in Kent v. Honsinger et al. . ,................... p 100.00

June 3, To argument on motion to dismiss action in Kent v. Honsinger et al................................ 200.00

July 20, To services in case of Hellister, Receiver, v.

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

Related

Larson v. Russell
176 N.W. 998 (North Dakota Supreme Court, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
128 N.W. 1035, 20 N.D. 500, 1910 N.D. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lohr-v-honsinger-nd-1910.