Narragansett Milling Co. v. Salisbury, Admr.

166 A. 502, 53 R.I. 296, 1933 R.I. LEXIS 90
CourtSupreme Court of Rhode Island
DecidedMay 26, 1933
StatusPublished
Cited by2 cases

This text of 166 A. 502 (Narragansett Milling Co. v. Salisbury, Admr.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Narragansett Milling Co. v. Salisbury, Admr., 166 A. 502, 53 R.I. 296, 1933 R.I. LEXIS 90 (R.I. 1933).

Opinion

*297 Rathbun, J.

This is an action in assumpsit against the estate of James M. Ford on a claim filed in the Probate Court of the Town of Scituate and disallowed by the administrator. The case is here on plaintiff’s exception to the direction of a verdict for the defendant.

Said Ford died March 13, 1930. During a period of more than ten years preceding his death he had been doing business with Centredale Grain Company, which was one of numerous branch stores operated by the Narragansett Milling Co. From 1894 until a few days after the death of Mr. Ford the Narragansett Milling Co. existed and did business as a New Jersey corporation. A few days after Ford’s decease, a new corporation having the same name was formed under the laws of Delaware. The assets and business, including accounts receivable, of the New Jersey corporation were assigned to the Delaware corporation which then continued the operation of the branch stores, including the Centredale Grain Company.

When the first notice to creditors of the Ford estate was published, the new corporation directed the manager of Centredale Grain Company to file the claim against the Ford estate. On April 28, 1930, a claim for $4,619.39 was filed in the name .of Centredale Grain Company. The administrator disallowed the claim on November 24, 1930. Within six months thereafter this suit was commenced in the name of the Narragansett Milling Co., the Delaware corporation.

After the time for commencing suit had expired, counsel for the plaintiff learned that the claim accrued to the old corporation and came to the new corporation by assignment. Recognizing that the action should have been brought in the name of the old company for the benefit of the new one which had the beneficial interest, said counsel, relying upon *298 the provisions of Sec. 23, Chap. 333, G. L. 1923, moved to so amend that the plaintiff would be the Narragansett Milling Co., a corporation duly created under the laws of the state of New Jersey, suing for the benefit of the Narragansett Milling Co., a corporation duly created under the laws of the state of Delaware, assignee. The motion was granted and a demurrer to the amended declaration was overruled. Thereafter, the defendant, still contending that the amendment in effect constituted a new cause of action commenced after the period limited for commencing actions against estates, pleaded the statute of limitations in bar.

At the trial the plaintiff submitted all its evidence, including its books, which tended to show that $4,619.39— the amount of the claim as filed — was due plaintiff from decedent, James M. Ford, on March 13, 1930, the date of his decease; that after the claim was filed a credit of $11.80 was given for some grain bags returned by a representative of Mr. Ford’s estate and that the net amount due the plaintiff was $4,607.59 plus interest. The defendant introduced cancelled checks of the decedent showing that considerable sums of money had been paid to the plaintiff by Ford. The plaintiff introduced evidence to show that Ford had received credit for all these checks. Each party moved for a direction of a verdict.

The trial justice denied the plaintiff’s motion and granted the defendant’s motion for a directed verdict. In directing the verdict for defendant said justice stated, as the reason for this ruling, his belief that the ruling permitting the amendment as to the party plaintiff was erroneous and that such amendment was in effect the beginning of a new action after the expiration of the six months period of limitations for bringing suit against estates.

The first question is whether the trial court had jurisdiction to permit the amendment as to the party plaintiff. In ruling that the Superior Court acted without jurisdiction in allowing the amendment, the trial justice relied upon Thayer v. Farrell, 11 R. I. 305. "When that case was *299 decided the statute permitting amendments was much less liberal than at the present time. See Chap. 199, G. S. 1872; Sec. 34, Chap. 204, P. S. 1882. The present statute, Sec. 23, Chap. 333, G. L. 1923, provides as follows: "Sec. 23. No action shall be defeated by the nonjoinder or misjoinder of parties. New parties may be added and summoned in and parties misjoined may be dropped, by order of the court at any stage of the cause, as justice may require, in the discretion of the court, and upon such terms as the court may order. When any action has been commenced in the name of the wrong party as plaintiff, the court, if satisfied that it has been so commenced through mistake, and that it is necessary for the determination of the real matter in dispute so to do, may allow any other party or parties to be substituted, or added, as plaintiff or plaintiffs.”

In Woonsocket Rubber Co. v. Banigan, 21 R. I. 146 and in Taylor v. Superior Court, 30 R. I. 560, this court held that under our present statute, which is more liberal, the trial court had jurisdiction to grant an amendment by adding or substituting a new party plaintiff. In the latter case it appears that A, an incompetent under guardianship, had performed services for B in his lifetime, and after B’s death that A filed a claim in his own name without reference to his guardian. Upon disallowance of the claim, A secured an attorney who brought suit in A’s name alone. Thereafter the guardian died and another was appointed in his stead. The new guardian, on learning of the suit improperly brought, sought to intervene in order that the writ and declaration might be so amended that A would be legally and properly before the court by his guardian. In the meantime the period of the statute of limitations had run. Defendant opposed the amendment. His contention was that such an amendment at that time would be tantamount to authorizing a new action to be brought after the statutory limit. The court held that the amendment was properly allowed and said that: “Under the ample powers of amendment contained in Gen. Laws 1909, cap. 285, § 4 *300 (which is the same as our present statute) the Superior Court had undoubted authority to permit said amendments to be made.”

In Bowen v. Nat’l. Life Ass’n, 27 Atl. 1059, the Supreme Court of Errors of Connecticut, in construing a statute substantially the same as ours, held that even after the time limited for commencing suit an amendment could be made substituting as plaintiff the representative of the estate of an assignor.

In 37 C. J. (note 81) p. 1067, it is stated that: “Substituting the party'having the legal right to sue instead of one improperly named as plaintiff is in no sense the commencing of a new suit, but so far as defendant is concerned the suit will be regarded as commenced at the time of the original issuing and service of the summons.” See also U. S. Ins. Co. v. Ludwig, 108 Ill. 514; Obermanv. Camden Fire Ins. Ass’n, 314 Ill. 264; Mo., K. & T. Ry. Co. v. Wulf, 226 U. S. 570.

In the case before us the old action was continued.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Normandin v. Levine
621 A.2d 713 (Supreme Court of Rhode Island, 1993)
Tillinghast v. Maggs
111 A.2d 713 (Supreme Court of Rhode Island, 1955)

Cite This Page — Counsel Stack

Bluebook (online)
166 A. 502, 53 R.I. 296, 1933 R.I. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/narragansett-milling-co-v-salisbury-admr-ri-1933.