Mason v. Beebee

44 F. 556, 1890 U.S. App. LEXIS 1900
CourtU.S. Circuit Court for the Southern District of Iowa
DecidedDecember 17, 1890
StatusPublished
Cited by6 cases

This text of 44 F. 556 (Mason v. Beebee) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the Southern District of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mason v. Beebee, 44 F. 556, 1890 U.S. App. LEXIS 1900 (circtsdia 1890).

Opinion

Shiras, J.

The plaintiff herein obtained judgment in this court against J. T. Beebee and I. N. Bice for the sum of $449.85, on which execution was issued, and service thereof was had by garnishing the Kice-Hinze Piano Company, a corporation created under the laws of Iowa. J. C. Macy, the president and treasurer of the company, answered the garnishment on behalf of the company, and the plaintiff now moves for judgment on such answer, claiming that it appears therefrom that the garnishee, since the service of the writ of garnishment, has paid for the benefit of I. N. Rice, one of the execution debtors, the sum of $500, which amount should have been held for the benefit of the execution plaintiff.

In the answer on behalf of the garnishee the following facts are stated: The Rice-Hinze Piano Company was organized at Des Moines, Iowa, in March, 1889, and continued the manufacturing of pianos at that place until about the 1st of June, 1890, when the factory was removed to Chicago. The capital stock of the corporation was fixed at the sum of $25,-000, of which J. C. Macy owmed $22,000, and Mrs. L. E. Rice, wife of I. N. Rice, owned $1,000, and Mrs. Hinze $2,000; that it was agreed that the members of the company should devote their time and services to the work of the company without compensation; that when Mrs. Rice subscribed for her shares of stock, it was agreed that she should contribute the time and services of her husband in place of her own, and that if it became necessary the company should pay her, for her living expenses, the sum of $25 per week; that so long as the business was carried on at De Moines no payments were made her, but after the removal to Chicago weekly payments of $25 were made to her. Touching any arrangement between [557]*557the company and I. N. Rice personally, the answer of Mr. Maoy is as follows:

“.Neither the Eice-Hinze Company, nor myself, as its representative, nor myself individually, nor no other person representing either the company or myself, has ever made any arrangements, direct or otherwise with I. X. Eiee, or any one representing him, for his services, except as hereinbefore stated: that is, that Mrs. Rice should contribute the services of her husband to the company in place of her own services. The money that is paid to Mrs. Eiee is charged to her account on the books of the company, and 1. In. Eiee has absolutely nothing to do with the matter. He is not employed by the company, is not, working for the company, and is not paid by the company. He is simply sent there by Mrs. Hice to represent her interests, and to ill) her position, and to do the work which, under the agreement made when said company was organized, was to be done by her, and which would be done by her if she were able and capable of doing it. ”

On part of plaintiff it is argued that it is fairly inferable from the whole of the answer made on behalf of the garnishee that the arrangement made between Mrs. Rico anti the company is merely a means of hiring 1. N. Rice, and for his services paying the agreed sum of $25 per week. It is not to be denied that there is much force in the argument, and it may be true, as claimed, that the real purpose of the arrangement was to secure the services of I. N. Rice for the company at the price named, payment therefor to be made to his wife as a means of avoiding the claims of creditors, but I do not think the court is justified in so finding upon this motion.

To entitle an execution plaintiff to a judgment against a garnishee upon his answer alone, it must clearly appear that the liability exists, it is said by the supreme court of Iowa, in Morse v. Marshall, 22 Iowa, 290, that “in order to charge a garnishee on his answer alone there must be in it a clear admission of a debt due to, or the possession of money or attachable property oí, the defendant. * * * If it be left in reasonable doubt, whether he is chargeable or not, he is entitled to a judgment in his favor.” The same rule is reiterated in Church v. Simpson, 25 Iowa, 408; and Hibbard v. Everett, 65 Iowa, 372, 21 N. W. Rep. 683. In the answer of the garnishee in this case there is not only not a clear admisr sion of a debt due, but ail absolute denial of any liability whatever. True, these general statements are accompanied with details intended to show the actual arrangement between the parties, and if those details, fairly construed, showed a liability on part of the garnishee, it would bo so adjudged, not withstanding the general denial of liability. The difficulty is that if we accept as true the statement of the arrangement as made by the garnishee, it does not necessarily show that the company has been indebted to I. N. Rice in the past, or will become so in the future. Suppose the answer had stated that Rice worked for the company, giving his entire time and services thereto, but that the agreement was that he should do so without receiving any pay or compensation therefor, would the court be justified in rendering a judgment against the company for what it might deem was the reasonable value of such services, upon the argument that no reasonable man would make such áíi [558]*558arrangement, and that it must be a mere covér and sham ? Clearly not,, it seems to me.' If issue is taken upon the answer of the garnishee, and evidence showing the fact' of insolvency, and any and all other circumstances showing the real situation of the parties'is introduced, then, upon such issue, the court will adjudge the matter according to the fail-preponderance of the entire evidence, but upon a motion for judgment upon the answer alone the facts stated in the answer must be accepted as true, and the conclusion they require must be the one placed upon the answer. The result of a judgment in favor of plaintiff would be to-compel the garnishee to pay to the plaintiff the sum of $500, while it is not made to appear from the answer that if Rice had sued, in his own behalf, the piano company, he would be entitled to any judgment against the company. If this was an action by Rice against the company, and the only evidence offered was the testimony of Macy, president of the defendant, containing just the facts and statements set forth in the-answer of the garnishee, it is clear that he could not recover thereon against the company, and that for the reason that it did not appear that, the company was bound to him for the work he had done, but, on the-contrary, that the companj'- was not bound to pay him for his services. Under these circumstances, I do not think the liability of the garnishee-is made to appear so clearly as to justify a judgment against it.

If, however, it should be held, according to the contention of plaintiff, that I. N. Rice is in fact engaged as a foreman or superintendent in the factory at Chicago, and that the company, for such services, has engaged to pay the price or wages of $25 per -week, the mode of payment testified to being merely a sham, then the question arises whether such-salary or wages is not exempt from execution. Rice is a married man,, and head of'a family, and under the statutes of Illinois, as well as under the statutes of Iowa, his wages are exempt from execution, unless allowed to accumulate beyond $50 in amount in Illinois or beyond 90' days in Iowa. On behalf of plaintiff it is contended that as Rice is now a hón-fesident of the state of Iowa, his wages are not exempt from execution.

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Cite This Page — Counsel Stack

Bluebook (online)
44 F. 556, 1890 U.S. App. LEXIS 1900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-beebee-circtsdia-1890.