Omaha Coal, Coke & Lime Co. v. Suess

74 N.W. 620, 54 Neb. 379, 1898 Neb. LEXIS 74
CourtNebraska Supreme Court
DecidedMarch 17, 1898
DocketNo. 7891
StatusPublished
Cited by1 cases

This text of 74 N.W. 620 (Omaha Coal, Coke & Lime Co. v. Suess) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omaha Coal, Coke & Lime Co. v. Suess, 74 N.W. 620, 54 Neb. 379, 1898 Neb. LEXIS 74 (Neb. 1898).

Opinion

Irvine, C.

This was an action in the nature of a creditors’ bill. The plaintiffs had recovered judgments against one Gottlieb Zimmerman, and had caused executions to be levied on certain land in the city of Omaha, the title to which was once in Zimmerman, but which had, prior to the recovery of the judgments, been by him conveyed to Henry Suess. The facts, as disclosed by the pleadings and evidence, are as follows: Zimmerman was a stockholder in a corporation known as the Omaha Brick & Terra Cotta Manufacturing Company. The officers of that corporation failed to publish statements of its indebtedness as required by law, and during the period of such default it became indebted to plaintiffs in divers sums. Judgments. were recovered against the corporation, and executions having been returned unsatisfied, a suit was brought by one of the judgment creditors against Zimmerman and other stockholders, which resulted in a judgment or judgments, in favor of all the plaintiffs in this case against the stockholders, for different amounts, according to their respective holdings. It is upon these judgments that this suit is based. Before these judgments were recovered against the stockholders, but after [381]*381the debts on which they were based were contracted, Zimmerman made a deed of the land here in question to Henry Suess and that deed was recorded. Suess was an agent of the Anheuser-Busch Brewing Association, and the object of the deed was to secure the brewing association .on account of certain indebtedness then existing from Zimmerman to it, and for future advances. The plaintiffs attacked the conveyance to Suess as fraudulent. The court found that the conveyance to Suess was in legal effect a mortgage to secure the brewing association, and that it was a valid lien for that purpose. It established the lien created thereby as a senior lien as to the amount advanced to Zimmerman prior to the commencement of this action. It then established the judgments of plaintiffs as liens inferior to the mortgage to the extent indicated, but superior to the mortgage as against advances made after the commencement of the suit. The plaintiffs and Suess appeal, Suess claiming that the court erred in adjudging that plaintiffs had any lien, and if that was not error, then in subjecting to their claims that for advances made by the brewing association after suit was brought; the plaintiffs asserting that the court erred in allowing the lien of Suess for any amount.

The broad assertion made on behalf of Suess is that the plaintiffs are entitled to nothing by reason of their judgments. This assertion is based on the fact that the indebtedness of the terra cotta company to the plaintiffs arose while section 136 of chapter 11 of the General Statutes of 1873 was in force, and that the judgments were rendered after it had been repealed. The statute referred to rendered stockholders generally liable for debts of a corporation incurred while such corporation was in default in the publishing of notices of indebtedness. In 1891 that statute was repealed and replaced by another substituting a different and a limited liability. (Session Laws 1891, ch. 13.) The debts on which the judgments of plaintiffs are founded were incurred under the former law, but judgment was not rendered, nor indeed was [382]*382suit begun until after its repeal. It has been held that these statutes are penal in their nature, and that the repeal of the former act had the effect of defeating existing causes of action thereunder. (Globe Publishing Co. v. State Bank, 41 Neb. 175.) It does not, however, follow that because the court should not have rendered the judgments they cannot after their rendition be enforced. On this point the argument of Suess is that the judgments, because of the prior repeal of the act, were void. The authorities cited do not support that theory. They are all cases where the jurisdiction of the court rendering the judgment was affected by the repeal of the act. Thus, if a court is one of limited jurisdiction, and depends upon a statute for its jurisdiction over a certain class of cases, the repeal of the act conferring jurisdiction ousts it of all power in the premises, and judgments thereafter rendered are for that reason void. So, too, perhaps, if a court be one of general jurisdiction, and a statute giving a right of action prescribes a special remedy, the repeal of the act might defeat the jurisdiction in such cases., And, if a court, although of general jurisdiction, derives its power to make a particular order solely from statute, the repeal of the statute might render a subsequent order of that character void, not strictly for want of jurisdiction of the subject-matter, but for want of power to make such an order. This case does not fall within any of these classes. The act repealed' did not provide any special procedure or vest in the court the power to render any extraordinary relief. It merely gave a right of action, to be enforced by any court having jurisdiction of actions of that class, and to result in ordinary judgments, enforceable by the usual sanctions. The district court was a court of general jurisdiction. The proceeding in this case was by petition in the nature of a bill in equity, to marshal the debts, and determine the liability of the respective stockholders. The new law preserved such a right of action and made no special provision as to the manner of its enforcement. The district court having [383]*383general jurisdiction of actions of this general character, independent of statute, and having jurisdiction of the persons, its judgment was not void; it was at most erroneous. The case is not different in this respect than it would have been if the action had been founded upon the theory that a common-law liability existed. If the court had so held it would have been error, for which the judgment could have been set aside by appellate proceedings, but it would not have been void, any more than any judgment is void when an erroneous view as to the liability of the defendant has been taken by the court, and has led to the judgment.

The next matter presenting itself for examination is the correctness of the court’s action in adjudging the conveyance to Suess to be a valid lien. The evidence shows that Zimmerman had for some years been purchasing beer from the brewing association for bottling purposes. He should under his agreement have paid therefor at stated intervals, but before this deed was made he had become lax in this regard, and the brewing association insisted upon security. He then owed the brewing association a considerable sum. The conveyance in question was made to Suess, who, as has been said, was an agent of the association, but who lived in Denver and does not seem to have had any connection with Zimmerman’s affairs except to receive the conveyance. The conveyance was to secure what was already owing and to operate as a continuing security for indebtedness that might thereafter be contracted by Zimmerman’s purchasing beer from the association. The deed was absolute in form, conveyed much property besides that in dispute, and stated a consideration many times as great as the indebtedness then existing and probably much more than at any time existed. There was perhaps sufficient in the circumstances to have warranted the district court-in finding that the conveyance was fraudulent as against creditors, although based on a valuable consideration; but Ave do not think that the evidence was so conclusive [384]*384that the court was bound to so find. Oases are cited which hold that a conveyance made under somewhat similar circumstances is in law fraudulent, but our statute (Compiled Statutes, ch. 32, sec.

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Bluebook (online)
74 N.W. 620, 54 Neb. 379, 1898 Neb. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omaha-coal-coke-lime-co-v-suess-neb-1898.