Mendes v. Freiters

16 Nev. 388
CourtNevada Supreme Court
DecidedJanuary 15, 1882
DocketNo. 1,071
StatusPublished
Cited by6 cases

This text of 16 Nev. 388 (Mendes v. Freiters) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mendes v. Freiters, 16 Nev. 388 (Neb. 1882).

Opinion

By the Court,

Leonaed, C. J.:

This appeal is from a judgment in favor of the intervenors above named, whereby it was ordered and adjudged that, the lien of plaintiff’s attachment upon certain personal property be postponed to the liens of the intervenor’s attachment, and that the sheriff should sell said property, and out of the proceeds of such sale pay, first, the judgments of the intervenors against defendant in the order in which they were issued; and, second, out of the surplus, if any, satisfy plaintiff’s judgment in whole or part. Plaintiff’s attachment was prior in time, and his judgment was for seven thousand nine hundred and fifteen dollars and ninety-[392]*392seven cents. The aggregate of intervenors’ judgments was three thousand five hundred and eighty-eiglit dollars and forty-nine cents. The value of the property attached is insufficient to satisfy plaintiff’s judgment. The defendant is insolvent, and has no other property out of which the several judgments can be satisfied.

In his original complaint plaintiff declared upon an account stated between him and defendant on the eighth day of August, 1879, and alleged that upon such statement, a balance of ten thousand one hundred and one dollars and ninety-four cents was found due to him from defendant, no portion of which sum had been paid, and asked, judgment for that amount. Subsequently defendant filed a demurrer .to the complaint, which he afterwards withdrew, and his default was duly entered; but in the meantime the petitions of intervenors had been filed and served. Thereafter, with permission of the court, and without objection on the part of intervenors, plaintiff filed an amended complaint upon an account stated between him and defendant, on said eighth day of August, but alleged that both he and the defendant made a mistake arid error as to the amount really due from the latter to him, and that the amount due on said date was seven thousand nine hundred and fifteen dollars and ninety-seven cents, instead of ten thousand one hundred and one dollars and ninety-four cents. And “for further cause of action” he alleged that, “on the 'eighth day of August, 1879, defendant was, and now is, indebted to plaintiff in the sum of seven thousand nine hundred and fifteen dollars and ninety-seven cents, upon a balance due for goods furnished and delivered, and for moneys advanced, paid out and expended, for defendant, at his special instance and request, between January, 1871, and the eighth day of August, 1879.

The petitions of intervention charged that plaintiff’s action was brought, and his attachment issued, to hinder, delay, and defraud the creditors of defendant, by collusion between plaintiff and defendant. Intervenor Colerick also alleged, upon information and belief, that w-hen the action was commenced defendant was not indebted to plaintiff in [393]*393any sum; and intervenor Johnson in the same manner alleged that, defendant was not indebted to plaintiff in the sum of ten thousand one hundred and one dollars and ninety-four cents; that, if he was indebted in any sum, it was for several thousand dollars less than that amount, and that he did not know and had no means of knowing or ascertaining the exact amount due, if anything. Plaintiff answered, denying all charges of fraud stated by the inter-venors, and made allegations similar to those set out in the-amended complaint, as to the amount due to him, and as to the error and mistake in stating that amount, and in commencing the action for a larger sum than was actually due. It will be seen that one of the issues raised between plaintiff and the .intervenors was as to the amount actually due to the former from the defendant, and another was upon the alleged fraud. Plaintiff was permitted, without objection on the part of intervenors, to introduce evidence to sustain his allegations in the amended complaint as to the amount actually due, and to repel' the charges of fraud. Among other facts, the court found that there was no collusion between plaintiff and defendant, and that plaintiff did not intend to either hinder, delay, or defraud the other creditors of defendant, but that on the evening previous to commencing his action plaintiff demanded an acknowledgment from defendant of the latter’s indebtedness, which was given in writing for the sum of ten. thousand one hundred and one dollars and ninety-four cents,-with the understanding that if said amount was not due, the acknowledgment should be corrected so as-to conform to the truth; that wlien plaintiff took the acknowledgment he did not know exactly how much was due, but did know it was not as much as the sum acknowledged, and that he took it with margin enough in his favor to cover all that defendant owed him, and all that he (plaintiff) had become defendant’s surety for; that plaintiff knew at the time he commenced his action for ten thousand one hundred and one dollars and ninety-four cents, that defendant did not owe him that amount, either directly or indirectly, on account of indorsements or otherwise.

As to the execution of the acknowledgment, plaintiff tes-[394]*394tifiecl, in substance, that defendant signed it; that they guessed at the amount dúe; that they did not examine the boohs; that it was given and received with the understanding that, if there was a mistake, it should be corrected.

As conclusions of law, the court found, 1. That plaintiff was guilty of constructive fraud in taking an acknowledgment for a sum greater than was actually due; .2. That there never was an accounting; 3. That in commencing his action upon an account stated, plaintiff commenced upon a cause of action that did not exist, and that the attachment issued upon said cause of action was invalid and void as to subsequent attaching creditors; and, 4.. That plaintiff was entitled to judgment against defendant for the sum of seven thousand nine hundred and fifteen dollars and ninety-seven cents, the amount claimed in the amended complaint. The amount of this judgment was made up of the following items, viz.:

a. There was due to plaintiff, on direct account, five thousand three hundred and sixty-one dollars and eighty-five cents. '

b. A note executed for defendant’s benefit, upon which plaintiff was joint maker, for one thousand dollars. This note was due when the action was commenced, and according to plaintiff’s testimony, it was paid by him before the commencement of the action.

■ c. A note for six hundred dollars, of like character, not' due when the action was commenced, nor when the-amended complaint was filed. Plaintiff testified that ho paid this note the next day after the attachment.

d. An account against defendant in favor of Dunkel & Co.-, for which plaintiff was responsible. There is no evidence that this bill has ever been paid.

We deem it unnecessary to decide whether or not the- evidence supported an.action upon an account stated. 'The question is, Did the court err in postponing the attachment lien of plaintiff to those of intervenors, and in awarding to the latter priority of payment to the extent of their judgments ? . '

There was a large amount of money actually due to plaintiff, and this action was commenced to recover it, even though [395]*395tbe action was for a larger sum. A cause of action was well stated in tbe original complaint, whether in fact it existed or not. It was a cause of action upon which an attachment-could be had, and the court .acquired jurisdiction of the whole subject-matter.

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Bluebook (online)
16 Nev. 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mendes-v-freiters-nev-1882.