Merchants Fire Assurance Corp. v. Watson

64 P.2d 617, 104 Mont. 1, 1937 Mont. LEXIS 58
CourtMontana Supreme Court
DecidedJanuary 25, 1937
DocketNo. 7,591.
StatusPublished
Cited by6 cases

This text of 64 P.2d 617 (Merchants Fire Assurance Corp. v. Watson) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants Fire Assurance Corp. v. Watson, 64 P.2d 617, 104 Mont. 1, 1937 Mont. LEXIS 58 (Mo. 1937).

Opinions

The court erred in ruling that the action is one of equity, and in denying appellant's demand for a trial by jury.

Conceding, for the purpose of argument, that respondent's supplemental complaint was sufficient to set up an accord and satisfaction, then the matters set forth in respondent's original complaint were concluded. The alleged facts set forth in the supplemental complaint state an entirely new cause of action. This new action is not an action for the foreclosure of a lien. *Page 3 It is not an action in equity, and appellant was entitled to a jury trial.

"Whether there is or is not evidence of accord and satisfaction legally sufficient for submission to the jury is a question for the court, and where the facts in respect to an accord and satisfaction have been ascertained or are not in dispute their effect is purely a question of law and is not to be submitted to the jury, but if the evidence be such as to give rise to doubt, the case should, of course, be submitted to the jury. The weight of evidence of satisfaction is a question for the jury. If on the evidence adduced the intention of the parties is in doubt, the question should be submitted to the jury. If the evidence is conflicting or of such indeterminate character as to give rise to doubt whether what was given was given in satisfaction and so accepted, the question should be submitted to the jury, and it is an error to instruct the jury that it was an acceptance. Furthermore, it is usually a question for the jury whether a promise instead of the performance thereof has been accepted instead of satisfaction." (1 C.J. 583 and cases cited.)

In this case under the original pleadings, practically the only matter in dispute was appellant's right to recover on his counterclaim. The execution and delivery of appellant's note to respondent and the liability of appellant thereon were undisputed, except that appellant by his answer sets up a counterclaim, and the question of his counterclaim and the amount thereof was the only matter upon which any real issue was joined. The effect of respondent's supplemental complaint was to plead that appellant had agreed to pay the note set up in the original complaint, and to release respondent from any liability on the counterclaim. This was denied by the appellant, and we submit that a question of fact was raised which should have been submitted to a jury, if respondent's theory be correct that its supplemental complaint sufficiently pleads an accord and satisfaction and that the original action has been in all things settled and concluded. *Page 4 We do not anticipate that learned counsel for defendant will contend that an action to foreclose a lien is not one invoking equitable jurisdiction. (35 C.J. 164, sec. 35.)

What effect upon an equitable action has a legal defense? A legal defense does not divest equity of jurisdiction. The general rule is well stated in 35 C.J. 175, section 54, as follows: "Unless otherwise provided by statute, the fact that defendant sets up a legal defense to an equitable cause of action does not change the character of the proceedings or entitle him to demand a jury trial. Where a defendant sets up, as a defense to an equitable cause of action, facts which grow out of that cause of action, or the transaction which gave rise to it, and are so interwoven with it as to be inseparable from it, the defense partakes of the nature of the cause of action and is equitable, and not triable by jury, as of right." (Clark v. Baker,6 Mont. 153, 9 P. 911.) And the courts uniformly hold that cross-complaints and counterclaims, presenting legal issues, do not deprive a court of equity of jurisdiction. (Dover LumberCo. v. Case, 31 Idaho, 276, 170 P. 108; Brush v. Boyer,104 Kan. 168, 178 P. 445; Young v. Vail, 29 N.M. 324,222 P. 912, 34 A.L.R. 980.)

Equity retains jurisdiction to afford complete relief. (SeeClark v. Baker, supra; Maloney v. King, 30 Mont. 414,76 P. 939; Grosfield v. Johnson, 98 Mont. 412,39 P.2d 660.)

The appellant must concede, and has conceded, that certain features of the case were within the jurisdiction of equity. That being so, any request coming from the appellant for a submission of the whole case to a jury was too broad a request. (16 R.C.L., sec. 29, p. 213; 24 Cyc. 114; Bowlin Liquor Co. v. Fauver,43 Mont. 472, 117 P. 103.) This is an action to recover on a promissory note given for the premiums on five hail insurance policies issued by the *Page 5 plaintiff to the defendant to insure a crop of wheat growing on 560 acres of land in Judith Basin and Fergus counties on five separate but adjoining tracts, one policy being issued for each tract. The note was duly secured by a lien on the crop insured in accordance with the provisions of sections 8359-8365, Revised Codes.

The complaint in the action alleges all essential matters necessary to foreclose the lien and recover on the note, and sets out a copy of the lien, by Exhibit A, attached to and made a part of the complaint, such exhibit showing that the lien was duly filed in Fergus county as required by statute.

Defendant's demurrer to the complaint was overruled and thereafter an answer was filed denying the material allegations of the complaint, and setting up six "separate and further defenses," but referred to in the arguments as a counterclaim. In each such defense it is alleged that the growing crops of wheat on the various tracts of land were injured by a hail-storm on the 5th day of August, 1933; that on the 7th day of August following the defendant notified the local agent at Lewistown, Montana, of the loss, and that such agent communicated with the general agent of the plaintiff at Billings, Montana; and that on the 11th day of August, 1933, the local agent of the plaintiff and the adjuster from Billings made a personal inspection of such loss. It is then alleged that, when the adjuster and local agent first called at the farm of the defendant, the adjuster informed the defendant that nothing could be done with reference to an adjustment of the damage sustained by the defendant until the fields of grain had been inspected; that thereafter such fields were inspected by the adjuster and the local agent, acting together, and in company with the defendant; that after such inspection defendant was not advised that he would be required to make further proof of loss, and, by reason thereof, further performance of the terms of the agreement by the defendant as to loss, as provided by the policies, was waived by the plaintiff. It is then alleged that the various crops growing on the different tracts were damaged to the extent of 35 per cent. *Page 6 as to some tracts, and 50 per cent. as to others.

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Cite This Page — Counsel Stack

Bluebook (online)
64 P.2d 617, 104 Mont. 1, 1937 Mont. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-fire-assurance-corp-v-watson-mont-1937.