Murphy v. Missouri & Kansas Land & Loan Co.

149 N.W. 957, 28 N.D. 519
CourtNorth Dakota Supreme Court
DecidedSeptember 12, 1914
StatusPublished
Cited by5 cases

This text of 149 N.W. 957 (Murphy v. Missouri & Kansas Land & Loan Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphy v. Missouri & Kansas Land & Loan Co., 149 N.W. 957, 28 N.D. 519 (N.D. 1914).

Opinion

Goss, J.

This is an equitable action brought to determine adverse claims to real estate. This opinion is written after a rehearing had. Substituted service of summons was made upon the five individual defendants and one corporation defendant in 1910, and all of them appeared in due time by their attorneys of record, who served written notice of appearance and demand for a copy of the complaint on behalf of all defendants. The individual defendants have never answered, and are in default of answer, but their attorneys of record appeared for them at all times during the progress of the trial. An original answer and counterclaim was served by the corporation, the Missouri & Kansas Land & Loan Company, which was held to have been served in time, on appeal to this court decided in 22 N. D. 336, 133 N. W. 913. Kemittitur on that appeal left this court in January, 1912. A few days prior thereto, December 26, 1911, the twenty-year period of corporate existence, the lifetime of the corporation under the Kansas statutes, expired, it thereby becoming dissolved with this action undetermined after issue joined. On April 30, 1912, the attorneys for the plaintiffs and the defendant corporation served, respectively, amended complaint, answer, counterclaim, and reply thereto on eve of the trial, and proceeded to a trial upon the merits, all in ignorance of the lapsing of the corporate charter. The amended com- ¡ ,i plaint, and likewise the reply, pleads a forfeiture of the corporate 'charter by nonuser and noncompliance with the Kansas law, but the j 'pleadings do not plead a dissolution of the corporation by lapse of¡‘ , time. A forfeiture is one thing, and dissolution without forfeiture, j by lapse of charter, is a different thing. Motions were subsequently’ [527]*527made to strike out the portions of the plaintiffs’ complaint and plaintiff's’ reply to defendants’ counterclaim pleading the forfeiture of corporate existence, as not in issue and not a matter to be alleged by way of reply, but it is unnecessary to pass upon said motion for reasons hereinafter stated.

Plaintiffs’ original complaint is in the statutory form to determine adverse claims, and recites tax deeds as the basis of title. The original answer of the corporation, interposed in 1910, before its dissolution, denied the title of the plaintiffs, alleged its source of title through , deeds, and asked affirmative relief, that it be decreed to be the owner,/ and entitled to possession. The individual defendants, as stated, interposed no answer. Trial was had on the merits on April 30, 1912, and the parties rested except as to the depositions of officials of the state of Kansas, to be taken later and submitted, on the question of forfeiture of corporate existence by the corporation defendant. This was done in July, and a final hearing was had September 3, 1912, at which time both the purported corporation and the plaintiffs rested after having offered proof by depositions establishing the dissolution of the corporation on December 26, 1911. Before the close of the trial on September 3d, the officials and manager of the corporation dissolved moved that they be substituted as parties defendant in lieu of the corporation, and be permitted to defend and prosecute the action as trustees on behalf of themselves, stockholders, and creditors of the defunct corporation. The depositions establish this to be permissible; under the laws of Kansas; that the parties petitioning are its officials' and stockholders; that it has $2,000 of liabilities unpaid. No return! was made on the motion to substitute, but was reserved, with all others, including the motions to strike. The court attempted to determine these questions in its findings and conclusions and order for judgment issued thereon, in which it was found that the petitioners were entitled to be substituted, and substitution was allowed, although no pleadings were filed other than the application for substitution and supporting affidavits, and the title of the action remained unchanged. On trial on April 30, 1911, counsel for plaintiffs gave notice in open court that the individual defendants served by substituted service, all of whom had appeared and were then appearing by counsel, would be considered as defaulting, and requested “that a default be entered against these [528]*528defendants for having not answered at this time, and that they are in default. We will present papers later.” To this counsel for said defendants in default in answer replied: “We served notice of appearance, but no answer.” A long discussion then ensued between the opposing counsel as to whether the action was against Jones T. Wilson or James T. Wilson, or the identity of the party meant, in which attorneys of record for the defendants stated the contents of a petition for intervention they desired to file on behalf of Jones T. Wilson, to which objection was made, and it was finally agreed that any pleadings desired to be either served and filed by either party might be offered, and then considered subject to objection, and the trial proceeded. After plaintiffs had rested on the proof of their title, defendants moved “that the plaintiffs’ case be dismissed for the reason that now the plaintiffs having rested, it appears from the evidence offered that the plaintiffs have no interest, title, or estate in or to said premises whatever, upon which to base their cause of action.” The ruling upon the motion was reserved. In August, after the depositions had been taken in July, but before the same were submitted in September at the final session of the trial, pursuant to the notice given orally March 10th on trial, that the individual defendants were in default in answer, plaintiffs secured from the court an order for judgment, reciting that the individual defendants named “are in default for want of answer, and plaintiffs are entitled to the entry of a judgment herein adjudging that said nonanswering defendants have no estate or interest in or lien or encumbrance upon the property involved in this action.” Judgment in conformity therewith was entered August 22, 1912. Of the order and the judgment defendants’ attorneys had no notice. This order and judgment were subsequently set aside by the findings and order thereon, as erroneously and inadvertently made. The findings and order bear date of January 9, 1913. In October and after sub-, mission of the cause on the merits September 3, 1912 the plaintiffs,' having in August procured the default judgment against the individual' defendants, and for the first time acting upon the assumption that there was no corporation party adversary, no order of substitution of its managers as trustees having yet been made, filed both their written dismissal and a motion to dismiss without prejudice, as against said corporation defendant, averring that all proceedings taken to that date [529]*529against it were void, but especially excepting from such dismissal those “defendants against whom judgment had been entered,” the individual defendants. Plaintiffs thus sought to dismiss from the suit, in the', face of a motion for substitution pending, the sole answering defendant, or would-be trustees in its behalf, and leave intact its judgment' against the individual defendants appearing but not answering; andj this, too, with the record made by themselves affirmatively disclosing1 an utter want of title or interest in them to the land in suit.

There is no question as to this corporation having become defunct in December, 1911. The proof offered by both parties, as well as the affidavits of the attorneys for both plaintiffs and those who would appear in the corporation’s behalf on the motion to substitute the trustees in lieu of the corporation, state that fact.

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Cite This Page — Counsel Stack

Bluebook (online)
149 N.W. 957, 28 N.D. 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-v-missouri-kansas-land-loan-co-nd-1914.