Lowery v. State Life Insurance

54 N.E. 442, 153 Ind. 100, 1899 Ind. LEXIS 22
CourtIndiana Supreme Court
DecidedJuly 7, 1899
DocketNo. 19,021
StatusPublished
Cited by44 cases

This text of 54 N.E. 442 (Lowery v. State Life Insurance) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowery v. State Life Insurance, 54 N.E. 442, 153 Ind. 100, 1899 Ind. LEXIS 22 (Ind. 1899).

Opinion

Hadley, J.

Appellant is prosecuting this action to-secure a perpetual injunction against appellee’s issuance of certain contracts, and the payment of money on those already issued.

Appellant alleges in his complaint that appellee is an insurance company, organized and doing business under an act [101]*101of the General Assembly approved February 10, 1899, on the mutual principle; that he is a policy-holder and member in appellee company, and that said company has issued and is continuing to issue, and will, if not restrained,-continue to issue, certain contracts designated “Vice-Oounselor’s Contracts,” which, for reasons specifically alleged, are charged to be in violation of its charter, and in derogation of the rights of the great body of -its members. No demurrer was filed to the complaint.'

Appellee answers the complaint in a single paragraph, in which it is averred that it has issued, and intends to continue the issuance of, said contracts, to the full limit of 1,000; and facts are set forth in detail by which appellee avers and seeks to show that the contracts complained of are contracts for services to be rendered the company, and in compliance with the law, and its charter and by-laws, and the most profitable and economical method of conducting the company’s business the directors have been able to devise. Appellant’s demurrer to the answer for insufficiency of facts was overruled. The Attorney-General has intervened and filed a brief. The Auditor of State has also filed a brief.

At the very threshold of the investigation we are met with the question, has the court jurisdiction of the subject-matter of this suit? A negative answer ends the inquiry. Appellant’s complaint discloses that he is a policy-holder and member of appellee, and that appellee is organized and doing business under the act of February 10, 1899 (Acts 1899, p. 30), the seventeenth section of which act provides as follows: “No order, judgment or decree, providing for an accounting or enjoining, restraining or interfering with the prosecution of the business of any insurance corporation, association or society, organized or doing business under the provisions of this act, or appointing a temporary or permanent receiver thereof, shall be made or granted otherwise than upon the application of the Attorney-General on his own motion, or after his approval of a request in writing therefor by the [102]*102Auditor of State, except in an action by a judgment creditor or in proceedings supplementary to execution.”

Tbe question of jurisdiction was not raised in tbe court below, and it is insisted that it cannot be raised for the first time in this court, and must be deemed as waived by tbe appellee. This insistence must be accepted as true, if tbe court below bad authority to exercise its jurisdiction over tbe subject-matter of tbe suit; otherwise, denied.

A court is a creature of tbe law, instituted for tbe determination of questions of law and fact under defined restrictions and limitations. Tbe territorial limits of its power, tbe subjects and classes over which its power may be exercised, tbe terms upon which it may put its power into action, are as firmly and clearly established as tbe right to adjudicate when authorized to do so; and, though a court of general jurisdiction, it must proceed in tbe manner and upon tbe conditions imposed by tbe law, and an assumption of jurisdiction over a subject or a person, upon terms denied by tbe law, is as unwarranted and futile as tbe assumption of jurisdiction without its territorial limits. A departure from tbe limits and terms of jurisdiction is usurpation of power that imparts no validity whatever to its judgments and decrees. Works, §10, p. 28, and authorities cited. Hence, we have tbe generally accepted rule that, when a court proceeds without jurisdiction of tbe subject-matter, its judgment is wholly void; and, adopting as our own tbe words of tbe court in Sheldon v. Newton, 3 Ohio St., 494, on page 498, “It is equally unimportant bow technically correct, and precisely certain, in point of form, its record may appear; its judgment is void to every intent, and for every purpose, and must be so declared by every court in which it is presented.”

A void judgment implies no judgment at all, and its nonexistence may be declared upon collateral attack, upon suggestion of an amicus curiae, or by tbe court at any time upon its own motion. The rule is stated in 12 Enc. of Pl. and Prac., p. 190, as follows: “When it appears that tbe court [103]*103has no jurisdiction over the subject-matter of the suit, it will take notice of the defect, whether objection is made or not, and will dismiss or stay the proceedings ex mero moiu, and it is its duty to do so without determining any other matter involved in the litigation.” And the duty is not affected by the acquiescence or agreement of the parties to submit to the jurisdiction, since jurisdiction that cannot be acquired without consent cannot be bestowed with it. McCoy v. Able, 131 Ind. 417; Huber v. Beck, 6 Ind. App. 47; Davis v. Davis, 36 Ind. 160; Doctor v. Hartman, 74 Ind. 221; Hawkeye Ins. Co. v. Erlandson, 84 Iowa 193, 50 N. W. 881; Chipman v. City of Waterbury, 59 Conn. 496, 22 Atl. 289; Phillips v. Welch, 11 Nev. 158, 187; Stough v. Chicago, etc., R. Co., 71 Iowa 641, 33 N. W. 149;. Evans v. Iles., 7 Ohio St. 233-235; Sanders v. Pierce, 68 Vt. 468, 35 Atl. 377; McKinnon v. Hall, 10 Colo. App. 291, 50 Pac. 1052.

But the point is made that the question we have here does not relate to the subject-matter of the suit, but to the want of legal capacity in the plaintiff to bring the action. We think the question reaches further than the capacity of the plaintiff to sue. The mandate of the statute is “that no order, judgment or decree, enjoining or interfering with the business of an insurance company organized under the act, shall be made otherwise than upon the application of the Attorney-General.” Here we have very explicit language that a court shall have no power to enjoin or interfere with the business of an insurance company except upon the condition stated, namely, the application of the Attorney-General. That the Assembly had the power to fix terms to such suits cannot be doubted, and that it has provided that no one but the Attorney-General, either upon his own motion or upon the approved request of the Auditor of State, shall be plaintiff in such suit, is beyond controversy. This being true, we have before us a plaintiff who has no right to file a complaint,— who has no right or power to put in action the jurisdiction of the court, — and, in the absence of such right or power, we [104]*104have, in contemplation of law, a case without a plaintiff or a complaint. This situation defines itself. The right of jurisdiction in a court over a subject-matter may exist, but its valid exercise depends wholly upon its being invoked by one who is entitled under the law to set it in motion. “The power to hear and determine a cause is jurisdiction; and it is coram judien whenever a cause is presented which brings this power into action.

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Bluebook (online)
54 N.E. 442, 153 Ind. 100, 1899 Ind. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowery-v-state-life-insurance-ind-1899.