Lunt Farm Co. v. Hamilton

250 N.W. 698, 217 Iowa 22
CourtSupreme Court of Iowa
DecidedOctober 24, 1933
DocketNo. 42218.
StatusPublished
Cited by4 cases

This text of 250 N.W. 698 (Lunt Farm Co. v. Hamilton) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lunt Farm Co. v. Hamilton, 250 N.W. 698, 217 Iowa 22 (iowa 1933).

Opinion

Kindig, J.

This certiorari proceeding is brought to test the power and jurisdiction of the district court in setting aside a dis *23 missal of a cause-of action therein and reinstating the same on the calendar. A partnership brought the action, and a-purported dismissal was made by certain alleged partners. Consequently a question arises concerning the authority of such partners to make the alleged dismissal. If, as hereinafter more fully set forth, the alleged partners who attempted to make the dismissal did not have the authority to act for the partnership in the premises, the district court had jurisdiction and power to set aside the alleged dismissal and reinstate the cause. . An elaborate statement of somewhat complicated facts is essential for a complete understanding of the precise questions under consideration.

On the 3d day of January, 1910, Henry W. Lunt, a widower, of Mahaska county, Iowa, conveyed to his trustees, Johnson R. Lunt,his son, and Cole R. Van Gordon, his son-in-law, certain real estate in Iowa and Missouri for the benefit of the trustor’s children, Johnson R. Lunt, Walter L. Lunt, Willie C. Lunt, Elba Lunt Van Gordon, and Mattie Lunt Vernon (now Mattie Lunt Van Gordon). Of the trustees above named, Johnson R. Lunt, the trustor’s son, was a beneficiary under the trust.

The trustees were given the right to manage and control the real estate, to the end that the same might be properly farmed and cultivated. From time to time the trustees were required to report to the trustor and beneficiaries, during the trustor’s life, and thereafter such reports were to be made to the beneficiaries. Provision was made in the trust deed for the children of any beneficiary who might thereafter die.

During the trustor’s lifetime he was to be supported from the proceeds of the trust. Trust moneys were to be invested and reinvested. Many other items of benefit not here mentioned were granted to the beneficiaries through the trust deed. Under the terms of the trust deed, the trust was to terminate at the death of the trustor’s last surviving child. There is a further provision in the trust deed that if, at the trustor’s death, any of his children have preceded him in death, the heirs or legal representatives of such deceased child or children shall have no voice in determining “this trust. That the same can only be determined by my surviving children with the consent of my trustees aforesaid.”

At the time the aforesaid trust deed was executed, the beneficiaries thereunder, by contract among thémselves and with the trustees, agreed to articles of copartnership for the purpose of manag *24 ing the farming business contemplated by the trust deed. In these articles of copartnership, the trust deed is specifically mentioned, and the two instruments apparently become one contract, except that the trustor in the trust deed did not expressly become a party to the articles of copartnership. The copartnership was conducted under the firm name and style of Lunt Farm Company. According to the articles of copartnership, Johnson R. Lunt and Walter L. Lunt were to have chargé, management, and control of all the firm property with the exception of 126 acres of land. But there is apparently a limitation upon such management and control on the part of the two partners named. Under a later paragraph of the articles of co-partnership, it is provided that, in case of the death of any partner or manager, the firm shall continue to exist and be managed by the survivors of the original partners.

As part of the scheme of management, the articles of copartnership provide that the heirs and personal representatives of a deceased original partner shall become interested in the firm and at the annual settlements “may, if they desire, receive and maintain their full share of the profits, or permit them to still continue in the partnership until the time of the final dissolution.” Although that is true, it is provided, nevertheless, that such heirs and legal representatives of the deceased original partner “shall not be permitted to have the active management and control of the said partnership.” All such management and control, the articles continue, “shall belong to the surviving partners to this agreement.” While it is true that the articles of agreement are not skillfully drawn, yet, after a careful study of the entire document, the foregoing are the undoubted provisions thereof.

After the execution of the trust deed and the articles of co-partnership, the trust was executed and the partnership conducted in the manner and way contemplated. Then, on May 31, 1922, Johnson R. Lunt, a trustee and a partner, died intestate. He was survived by Kitte Lunt, his wife, and the following children and heirs at law: Arloine Lunt McCulloch, Gordon R. Lunt, and Leland Lunt. The widow and the children, with the Lunt Farm Company, Walter Lunt, and Willie C. Lunt, are the petitioners and relators in the case at bar.

Following the death of Johnson R. Lunt, his widow, Mrs. Kitte Lunt, and his children, Arloine Lunt McCulloch, Gordon R. Lunt, and Leland Lunt, petitioners and relators, on July 3, 1922, executed *25 three promissory notes payable to the Lunt Farm Company, a co-partnership. These notes were for the sums of $1,542.16, $2,000, and $2,000, respectively. Each instrument was payable six months after date. Because the notes were not paid, the Lunt Farm Company, as a copartnership, commenced an action to collect the same against the said Mrs. Kitte Lunt, Mrs. Arloine Lunt McCulloch, Gordon R. Lunt, and Leland Lunt, petitioners and relators, at the February, 1933, term of the Mahaska county district court. Original notices were duly served, and Mrs. Kitte Lunt, Mrs. Arloine Lunt McCulloch, Gordon R. Lunt, and Leland Lunt, petitioners and relators, appeared and filed an answer. In their answer these petitioners and relators denied liability, hut alleged the existence of the copartnership and declared that they were members thereof. Then, in an amended and substituted answer, these relators pleaded “that the said copartnership (Lunt Farm Company) existed at the time the alleged notes sued upon were executed, and said notes are alleged assets of the said copartnership, and that said copartnership still exists and is a going concern engaged in farming and stock raising. That the said members of the said copartnership are Walter Lunt, Willie C. Lunt, Mattie Lunt Van Gordon (formerly Mattie Lunt Vernon), Elba Lunt Van Gordon, and these defendants (the petitioners and relators). That by reason of the premises this plaintiff (Lunt Farm Company, a copartnership) has no authority to sue these defendants (the petitioners and relators), and these defendants are not indebted to the plaintiff (Lunt Farm Company) on the notes sued upon.”

Whereupon the Lunt Farm Company,- a copartnership, the plaintiff in the suit on the foregoing promissory notes, amended its original petition by setting forth some of the history of the organization of the copartnership, alleging the death of Johnson R. Lunt, naming the following petitioners and relators, Mrs. Kitte Lunt, as his surviving spouse, and Arloine Lunt McCulloch, Gordon R. Lunt, and Leland Lunt, as his surviving children and heirs, and declaring that such surviving spouse and heirs claim an interest in the copartnership.

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

Related

In Re Trust of Lunt
16 N.W.2d 25 (Supreme Court of Iowa, 1944)
Lunt v. Van Gorden
278 N.W. 631 (Supreme Court of Iowa, 1938)

Cite This Page — Counsel Stack

Bluebook (online)
250 N.W. 698, 217 Iowa 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lunt-farm-co-v-hamilton-iowa-1933.