Newman v. Northern Montana Ass'n of Credit Men

208 P. 914, 63 Mont. 545, 1922 Mont. LEXIS 124
CourtMontana Supreme Court
DecidedJune 19, 1922
DocketNo. 4,795
StatusPublished
Cited by1 cases

This text of 208 P. 914 (Newman v. Northern Montana Ass'n of Credit Men) 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
Newman v. Northern Montana Ass'n of Credit Men, 208 P. 914, 63 Mont. 545, 1922 Mont. LEXIS 124 (Mo. 1922).

Opinion

MR. COMMISSIONER COMER

prepared the opinion for the court.

This is an appeal by plaintiff from a judgment rendered against him in the district court, and involves a lot and the improvements thereon in Great Falls.

In 1909 plaintiff purchased the lot from a town site company for the sum of $456; in 1910 a two-story brick building of the value of $18,000 and a one-story brick warehouse of the value of $2,000 were constructed upon the lot. Plaintiff at the trial testified he got some money from his father, J. S. Newman, to construct the building, just how much he does not remember, but it appears from-the record that his father furnished all of the money necessary except about $4,700. Plaintiff was then sixteen years of age, and he claims to have received some money from some cattle and horses which he claims to have owned, but his recollection was not very clear, either as to the number he owned or how the expenses of their maintenance were paid. The checks for payment of the building erected were made out by J. S. Newman, who moved into the building shortly after it was completed, opened a store in it, and continued to operate the business until about 1916. In 1915 witness Wallace, in charge of the R. G. Dun Financial Reporting Agency in Great Falls, called upon Sam Newman, the plaintiff herein, and submitted to him a financial statement made out by J. S. Newman, showing, among other things, assets as follows: "One brick block, 2 stories, Gt. Falls, $25,000”—and he (Sam Newman) claimed that the property belonged to his father. The excavating for the brick building was paid for by J. S. Newman, partly in groceries from his store and partly in cash, and [550]*550the business relations were had with him. In 1912 or 1914, J. S. Newman told one of his creditors from whom he was purchasing goods that he wanted to sell the property, but could not do so until his son became of age, and that then he would have it transferred to him. J. S. Newman made various representations to his creditors between 1910 and 1915 that he owned the brick building. He had running accounts with several of them during this period of time, and in October, 1916, he owed them various sums as balances due. His creditors assigned their claims to the defendant herein, Northern Montana Association of Credit Men, and on October 24, 1916, it commenced an action against him upon said accounts, procured the issuance and levy of a writ of attachment upon said lot, and on November 28, 1916, judgment was entered in favor of said Association of Credit Men and against the said J. S. Newman for the sum of $3,368.08. In April, 1918, plaintiff herein, Sam Newman, commenced this action against the Association of Credit Men, alleging he was the owner of the lot, setting up the levy of the writ of attachment, claiming that it constituted a cloud upon the property, and asking for its cancellation. Defendant herein answered, setting up the assignment of the creditors’ claims to it, and that in 1910 a conspiracy existed between Sam and J. S. Newman and wife to cheat and defraud the then existing and the future, subsequent, and continuing creditors of J. S. Newman by placing the property of the said J. S. Newman so hisi creditors would be unable to reach it.

Other facts set out in the answer are substantially as set forth herein.

Defendant herein denies the ownership of the plaintiff in the lot, and alleges that it has no adequate remedy at law by which it can obtain the interest of J. S. Newman in the lot to satisfy its judgment, and asks that Sam Newman hold the title of the lot and buildings in trust for the use and benefit of J. S. Newman, and that the court decree a con[551]*551veyance of said lot and buildings, or so much thereof as may be necessary to satisfy said judgment.

Finding of fact No. 7 of the district court is as follows: “That, while the said J. S. Newman was carrying on said business, as aforesaid, he withdrew money, from time to time, out of the business, and with the knowledge and consent of his son, Sam Newman, the plaintiff herein, and, without any consideration, constructed, or caused to be constructed, on said lot 7, block 485, in the town site of Great Falls, Cascade county, Montana, being the same lot as was attached, as herebefore stated, a two-story brick building, at a cost of about $18,000, and a warehouse at a cost of about $2,000. That the amounts so expended by the said J. S. Newman were disproportionate to the amount of capital he had invested in his business, and caused his said insolvency.”

As a conclusion of law the court found that plaintiff is not the owner of any of the improvements on said lot 7; that the writ of attachment is a valid lien upon said improvements and the rents and profits therefrom. Judgment was entered accordingly, and plaintiff appeals.

The evidence in this ease shows that J. S. Newman fur- nished the greater portion of the money for the buildings on the lot. In bankruptcy proceedings he testified his wife furnished it, and in the district court his testimony indicates he furnished all except about $4,700. He claimed on various occasions to his creditors that he owned the premises, and the evidence also shows that the son, Sam Newman, admitted the ownership was in the father. Upon these assertions considerable credit was extended to J. S. Newman in his business by the defendant’s assignors.

There is a conflict between the testimony of the father and the son; the father says he gave the money to the son with which to build the buildings, while the son says that he borrowed it. In this case it is incumbent upon the plaintiff, Sam Newman, to show he is the owner of the property in ques[552]*552tion, and unless lie does so he is not entitled to the relief sought.

From a careful examination of the evidence in this case, we do not believe the conclusion is warranted that plaintiff owned the improvements at any time, or that it was the intention of the parties that the son should become the owner of the improvements. The statements made by J. S. Newman clearly indicate he owned the improvements, and the admissions of the son show he acquiesced in the assertion of the father, and that at the time he did not consider himself the owner. We are of the opinion that the conclusion of the district court was correct in that plaintiff has not shown he is the owner of the improvements upon the lot by the necessary proof.

Plaintiff in his brief admits that the money expended by the father in the construction of the building was without consideration, and constituted a voluntary conveyance of his property, but contends that the accounts assigned to the defendant Association of Credit Men were not in existence at the time of the.

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

Related

Federal Surety Co. v. Basin Construction Co.
5 P.2d 775 (Montana Supreme Court, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
208 P. 914, 63 Mont. 545, 1922 Mont. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-northern-montana-assn-of-credit-men-mont-1922.