Neilson v. Title Guaranty & Surety Co.

199 P. 948, 101 Or. 262, 1921 Ore. LEXIS 161
CourtOregon Supreme Court
DecidedJuly 30, 1921
StatusPublished
Cited by6 cases

This text of 199 P. 948 (Neilson v. Title Guaranty & Surety Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neilson v. Title Guaranty & Surety Co., 199 P. 948, 101 Or. 262, 1921 Ore. LEXIS 161 (Or. 1921).

Opinion

McBRIDE, J.

This appeal involves the validity of the judgments obtained by plaintiff and the Title Guaranty & Surety Company (which for convenience we hereafter designate as “the surety company”) [273]*273against Masters. If the judgments obtained through service by publication are valid, the appellants must prevail here. If they are void, neither plaintiff nor the surety company has through them any standing to contest the claims of the respondents. The validity of the various claims of defendant Moody and of the intervener representing the estate of L. M. Bates and the intervener Daniel Kern, will be discussed later. It is to be regretted that consideration of space in the reports renders it impracticable to set forth the contentions of the parties at greater length.

1, 2. Are the judgments above referred to valid? The attack upon them is collateral, and unless they are wholly and absolutely void, they must be upheld, so far as this proceeding is concerned: Moore Realty Co. v. Carr, 61 Or. 34 (120 Pac. 742). It may be premised that a judgment obtained by publication is a proceeding in rem, and before a valid order of publication can be made, there must be a seizure by-attachment of property of the defendant. The action must be upon a contract express or implied. There must be property of the defendant which is subject to attachment and actually attached. Where either of these requisites is lacking the judgment is absolutely void: Pennoyer v. Neff, 95 U. S. 714 (24 L. Ed. 565, see, also, Rose’s U. S. Notes).

3. It seems clear that the claim of Masters against the town of Bainier was not of a character subject to attachment. It was a claim for damages arising out of the negligent failure of the town to levy an assessment to obtain funds wherewith to pay Masters for his work and expenditure incurred in the completion of a street paving contract. It was an action ex delicto, and not ex contractu: Little v. Portland, 26 Or. 235 (37 Pac. 911).

[274]*2744. Neither was the claim which was the subject of the action brought by the surety company against Masters of such a character that an attachment would lie under Section 296, Or. L. It was a liability the amount or extent of which was not fixed, but' contingent upon the circumstance that litigation might arise in the future and that the surety company might be compelled to incur expense and suffer pecuniarily by reason of such litigation. It was not a “ contract for the direct payment of money”: Ancient Order of Hibernians v. Sparrow, 29 Mont. 132 (74 Pac. 197, 101 Am. St. Rep. 563, 1 Ann. Cas. 144, 64 L. R. A. 128); Hurd v. McClellan, 14 Colo. 213 (23 Pac. 792); Trepagnier v. Rose, 18 App. Div. 393 (46 N. Y. Supp. 397). This reasoning applied with equal or greater force to the claim of plaintiff Neilson.

These claims being unliquidated, contingent and uncertain in amount, and the action being to recover damages in tort for breach of conditions rather than upon contract, the action cannot be said to be one to recover upon “an actual bona fide existing debt due. and owing from the defendant to the plaintiff.”

“The legal acceptation of debt is, a sum of money due by certain and express agreement: as, by a bond for a determinate sum; a bill or note, a special bargain; or a rent reserved on a lease; where the quantity is fixed and specific, and does not depend upon any subsequent valuation to settle it”: 3 Blackstone, 154.

Schouler considers this definition too narrow, but does not differ from Blackstone in respect to the necessity that the demand be liquidated. In Section 354 of his work on Personal Property he says:

“A debt, as one readily gathers from its Latin derivation, is something owed. The person to whom [275]*275it is owed is the creditor the person owing it is the debtor. ‘The legal acceptation of debt is,’ says Blackstone, ‘a sum of money dne by certain and express agreement: as, by a bond for a determinate sum; a bill or note; a special bargain; or a rent reserved on a lease; where the quantity is fixed and specific and does not depend upon any subsequent valuation to settle it.’ But perhaps the words ‘certain and express’ here used are rather too strong; for the creation of a debt may be proved by any circumstances which raise an agreement by implication; and in a less technical sense the word ‘debt’ may sometimes be popularly used to denote any claim for money, or any kind of a just demand. But we properly use the word ‘debt’ as denoting in law that money is owed; also that the money is owed by virtue of some agreement or contract between the parties; also that a fixed and specific amount is due, and not something to be ascertained by valuation hereafter.”

The rulings of the courts are as various as the statutes and sometimes divergent in the construction of the same statute. Instead of employing the words of our statute, “an actual existing bona fide debt,” etc., many statutes read, “all debts, dues and demands,” or similar comprehensive language is used; and under such statutes attachments even in cases of personal torts have been sustained. It is sometimes difficult to draw the exact line between actions ex contractu and actions ex delicto, as not infrequently a cause of action will contain some element of both. But in the instant case a discussion of the nature of the actions brought against Masters by plaintiff and the surety company is in fact academic.

Ever since the luminous opinion of Mr. Justice Field was rendered in Pennoyer v. Neff, supra, the courts of this country have acquiesced in the doctrine that there can be no valid service of summons by pub[276]*276lication, upon a nonresident, without a contemporaneous seizure of his property; that the proceeding is in rem against that property; and that a judgment without such seizure is void. This being the case, and being satisfied that there was not and could not have been a valid attachment of Masters’ claim for damages against the town of Rainier, further discussion of the nature of the appellants’ claims against Masters is rendered unnecessary.

It follows that because at the commencement of the litigation there was no property of Masters which was subject to attachment, the judgments of plaintiff and the surety company are absolutely void, and those parties are in no position to contest the disposition of the fund existing by reason of the judgment of Masters against the town of Rainier.

5. It .is further contended on behalf of appellants that even if their judgments are void, they are entitled to the possession of the warrants which are the subject matter of this suit, by reason of an agreement made in writing by Roscoe C. Nelson, attorney for Masters in his suit against the town of Rainier. At the risk of being somewhat tedious we reproduce the letter of Mr. Nelson, which is addressed to Messrs. Norblad & Hesse and Mr. Fred W. Herman, attorneys for the town of Rainier, who were contemplating an appeal from the decision of the United States District Court in the mandamus

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Bluebook (online)
199 P. 948, 101 Or. 262, 1921 Ore. LEXIS 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neilson-v-title-guaranty-surety-co-or-1921.