Miller v. Connor

157 S.W. 81, 250 Mo. 677, 1913 Mo. LEXIS 182
CourtSupreme Court of Missouri
DecidedMay 31, 1913
StatusPublished
Cited by23 cases

This text of 157 S.W. 81 (Miller v. Connor) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Connor, 157 S.W. 81, 250 Mo. 677, 1913 Mo. LEXIS 182 (Mo. 1913).

Opinion

LAMM, J.

This cause is transferred here from the St. Louis Court of Appeals, its mandate running on the theory-that “a constitutional question — State and United States — is involved.” No opinion accompanies the mandate and we are left to feel after the constitutional question, if happily we may find it, precisely as did that court.

If our learned brethren had pointed out the constitutional questions and how they were “involved,” in a constitutional sense, so as to give this court jurisdiction, it might have aided in persuading us to their view, but (being left to our own resources) we have come to a view presently announced.

Attending to the pleadings, the suit is to recover $214 from defendant. It is alleged that she held two shares of stock in the State Bank, a bank organized [679]*679under the laws of and doing business in Colorado; that under Colorado laws shareholders are individually responsible for bank debts, contracts, or engagements, in double the par value of the stock owned by each; that in June, 1899, said bank made an assignment; that in 1905 plaintiffs, creditors of the bank, sued in the district court of the county of Denver in Colorado for an accounting and to ascertain the pw rata amount due by the respective stockholders under the double liability statute — the bank, its assignee and non-resident stockholders (including defendant) were made parties defendant; that said district court had jurisdiction; that the bank and its assignee, duly served, made default; that a certain defendant, Kipp, entered his voluntary appearance and filed an answer, but that no service was had on the other defendants who were non-residents of Colorado.

It is further alleged that in the Colorado suit judgment was rendered finding the total liability of the stockholders to be $16-0,000; that after converting the other assets of the bank into cash and collecting on the liability of the resident stockholders and applying same, the remaining unpaid debts aggregated the rise of $84,000; that defendant as a stockholder was decreed to owe fifty-three and one-half per cent of her total stock liability on said indebtedness-, to-wit, $214; that plaintiffs in that suit (plaintiffs in this) were appointed and authorized to represent all the creditors and to sue for their benefit in collecting amounts due on the stockholders’ liability of non-residents to be divided ratable among the creditors; that to that end plaintiffs were given full power and authority to settle and compromise said claims or suits for stock liability.

(Note: If this peculiar decree is based on a Colorado statute, such statute was not pleaded or offered in evidence.)

[680]*680The petition then goes on to allege that defendant has paid nothing on said liability though demand has been made. Having pleaded the Colorado statute making stockholders individually liable in double the amount of the par value of their respective stock-holdings as aforesaid and that plaintiffs were prosecuting the action as trustees for the creditors, it was next alleged that defendant (by virtue of said Colorado statute and 'the decree, entered in said Colorado court on the 28th day of May, 1907) was indebted in the said sum of $214, etc.

Demurrers were filed and overruled, but they are not brought here and no question is raised on them. Not only so but defendant answered over by general denial and a plea of the five-year Statute of Limitations.

Plaintiffs replied by a denial.

So much for the pleadings.

At the trial a jury was waived, the evidence was heard and no instructions were asked.

The motion for a new trial covered eight grounds, none of them of a constitutional complexion.

Turning to the trial, the following is the fashion of it:

Plaintiffs offered a certified copy of the incorporation of the State Bank, which we will call “X.” To the offer of X defendant objected on the ground the petition did not state a cause of action (quoting) “for reasons set out in the answer heretofore filed and in the amended demurrer raising constitutional questions.” This objection was overruled.

Plaintiffs next offered a certified copy of the bank’s deed of assignment which we will call “Y.” This was objected to, but on no constitutional ground that we can discover. Not only so, but this objection was also ruled in favor of plaintiffs.

Plaintiffs next offered a certified copy of the double-liability act of the General Assembly of the State [681]*681of Colorado, which we will call “Z.” The defendant objected to the offer, bnt on no constitutional ground. Not only so, but the court also ruled in favor of plaintiffs in this instance and admitted the certified copy.

Plaintiffs next offered a certified copy of the decree and findings of the Colorado court referred to in (and sustaining the averments of) the petition, which we will call “A.” The objections made by defendant to A were as follows, in substance: (1) because under the issues the proof was immaterial, irrelevant and incompetent; (2) because the judgment was not properly authenticated under the act of Congress; (3) because defendant was not served and was not a party to the proceeding; (4) because the decree was continued in the .Colorado court for any further necessary orders and ascertainments at its foot; and (5) because it was apparent on the face of the pleadings that the cause of action arose in 1899 (the date of insolvency) and nothing was shown to operate as a waiver of the Statute of Limitations or to relieve the running of its bar.

At this point, the record shows the court inquired of defendant’s attorney the date of the decree. To that inquiry he replied it was dated the 28th day of May, 1907; that he then proceeded to argue that the cause of action was not based on the decree, but on a cause of action fixed by the Colorado statute; that it could not be based on the decree, because his client was not a pa*rty to the proceeding in Colorado, and to hold her on the decree would be contrary to the Fourteenth Amendment to the Constitution of the United States and section 30, article 2, of the Constitution of Missouri. Thereupon the court suggested he would hear attorneys further on the question of the Statute of Limitations. At the end of the discussion he ruled the certified copy of the Colorado judgment inadmissible as evidence.

[682]*682There was next some oral testimony, immaterial to -the question of jurisdiction, and at the heels of it the court found for defendant and plaintiffs appealed.

The case hinging on the ruling on evidence, when appellants came to brief.their case in the Court of Appeals they made the following points in substance:

First: The Colorado decree was admissible in evidence because the cause of action arose in Colorado and is covered by the limitation statute of that State.

Second: In order to rely on the Colorado statute of limitations it should have been pleaded.

Third: The cause of action did not arise (i. e., limitation did not begin to run) until a judicial ascertainment was had at the date of the decree, 1907, not in 1899, the date of insolvency.

Fourth: Defendant having voluntarily become a stockholder, thereby she submitted herself to the jurisdiction of the Colorado courts — she sought the benefits and must assume the burden.

Fifth: The decree of the Colorado court is primafaoie good.

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Bluebook (online)
157 S.W. 81, 250 Mo. 677, 1913 Mo. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-connor-mo-1913.