Ontjes v. MacNider

12 N.W.2d 284, 234 Iowa 208, 1943 Iowa Sup. LEXIS 93
CourtSupreme Court of Iowa
DecidedDecember 14, 1943
DocketNo. 46374.
StatusPublished
Cited by9 cases

This text of 12 N.W.2d 284 (Ontjes v. MacNider) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ontjes v. MacNider, 12 N.W.2d 284, 234 Iowa 208, 1943 Iowa Sup. LEXIS 93 (iowa 1943).

Opinion

Miller, J.-

This is a phase, perhaps the closing chapter, of what has been protracted litigation. Former opinions of this court, which mark the progress of the litigation, include Ontjes v. Bagley, 1933, 217 Iowa 1200, 250 N. W. 17; Bagley v. District Court, 1934, 218 Iowa 34, 254 N. W. 26; Ontjes v. McNider, 1934, 218 Iowa 1356, 256 N. W. 277; Ontjes v. McNider, 1937, 224 Iowa 115, 275 N. W. 328; Ontjes v. MacNider, 1942, 232 Iowa 562, 5 N. W. 2d 860. The litigation was instigated by F. A. Ontjes, who is a lawyer. Originally he was named as the sole plaintiff and he has appeared throughout as counsel pro se. Later he has also appeared with other lawyers as counsel for coplaintiffs. It is contended, and there is some evidence to support the contention, that he insisted upon controlling the litigation as plaintiff. But whether or not he controlled it in law or in fact; the record is conclusive that throughout he dominated the presentation of the plaintiffs ’ side of the litigation.

In 1920 Ontjes had become the owner of one hundred shares of stock, par value of $100 per share, in the Northwestern States Portland Cement Company, a West Virginia corporation engaged in the cement business at Mason City, Iowa. C. M. McNider, prior to his death in 1928, had been the dominating personality in the management of this company. In 1929 it was proposed to reorganize the company as an Iowa corporation. Hanford MacNider, son of C. H. McNider, testified that the in *210 heritance-tax statute in West Virginia, and its application to transfers of stock after the decease of a stockholder, constituted one of the inducements i or reincorporation in Iowa. There were certain features of the proposed reorganization to which Ontjes took vigorous exception. He commenced an action to enjoin the project. A temporary injunction was granted. On appeal the order was reversed. Ontjes v. Bagley, supra, 217 Iowa 1200, 250 N. W. 17.

While the foregoing appeal was pending in this court, a controversy arose over the right of Ontjes, as plaintiff, to take the depositions of certain defendants. Resistance was made thereto. The court overruled the resistance and ordered the defendants to permit their depositions to be taken. Certiorari in this court followed and the order complained of was held to be illegal. Bagley v. District Court, supra, 218 Iowa 34, 254 N. W. 26.

In the meantime, Ontjes had filed a claim against the estate of C. H. McNider, deceased, in behalf of himself and other stockholders of the cement company Similarly situated, for an aggregate sum of $2,393,143 by reason of transactions of C. H. McNider, while, an officer of the cement company, in the purchase of stock in other independent cement companies, and the payment to McNider by the cement company of excessive salaries and bonuses. Ontjes attempted to join other parties defendant and other issues with the claim in probate. Defendants moved to strike and dismiss the count of the petition which undertook to join the other parties and the other issues with the claim against the estate. The motion was overruled. On appeal the order was reversed. Ontjes v. McNider, supra, 218 Iowa 1356, 256 N. W. 277.

The claim in probate had been filed August 6, 1931. C. H. McNider had died testate on October 30, 1928'. Hanford Mae-Nider, his son, and May H. McNider, his widow, promptly qualified as executors. The claim not being filed within twelve months from the giving of notice of such qualification, the executors asserted that the claim was barred by reason of the limitations stated in section 11972, Code, 1927. Ontjes contended that the claim was not thus barred because peculiar circumstances entitled him as claimant to equitable relief. Considerable testi *211 mony was taken to determine tlie issue of equitable relief. The court held with Ontjes and the executors appealed. This court declined to decide the issue, holding that the order appealed from was not an appealable order, but that it would inhere in any final judgment that might be entered in the trial of the claim upon its merits and might be considered and determined upon an appeal from such final judgment. Ontjes v. McNider, supra, 224 Iowa 115, 275 N. W. 328.

' Thereafter a protracted trial was had on the merits. The court disallowed in its entirety the claim for $2,308,153 based upon acquisition by C. H. McNider of certain stock in LaSalle Cement Company and the Alpha Portland Cement Company from the Sandusky Cement Company and Charles Boettcher, allowed $30,014 and interest for negligent sales by McNider of Alpha Portland Cement Company stock held by Northwestern States Portland Cement Company at prices below the prevailing market price, and allowed $27,916.66 and interest for illegal bonuses and salaries paid by the Northwestern States Portland Cement Company to McNider. On appeal, the judgment was affirmed. Ontjes v. MacNider, supra, 232 Iowa 562, 5 N. W. 2d 860.

Following the affirmance of said judgment, proceedings were had for the allowance of attorney’s fees and expenses from the amount recovered. The court determined that the net recovery amounted to $103,892.19 and that, from such recovery, there should he deducted and paid the following amounts: to F. A. Ontjes $20,000 for attorney’s fee and $4,750 for expenses; tó the estate of Ben S. Hunter $500 for attorney’s fee; to W. G. Henke $9,000 for attorney’s fee and $700 for expenses; to D. M. Kelleher $9,000 for attorney’s fee and $350 for expenses; to F. F. Faville $5,000 for attorney’s fee and $350 for expenses; to L. A. Ristau $83.15 for services as accountant. The costs of the hearing, amounting to $52.65, were also ordered paid out of the recovery. The balance of the recovery, in the amount of $54,106.39, was ordered paid to the Northwestern States Portland Cement Company of West Virginia. From this order, the Northwestern States Portland Cement Company appeals.

The only deduction which it challenges is that allowed to *212 Ontjes of $20,000 for attorney’s fee and $4,750 for expenses. It does not challenge the amount of either allowance. It merely challenges the right or power of the court to make any allowance to Ontjes for either item. No other issue is presented by this appeal. However, so' many reasons are suggested for a decision of that one issue, based upon the many implications that arise from the long and involved record of this litigation, which was incorporated into the proceedings herein, that some comment seems appropriate at this point to narrow the single issue submitted to us and to clarify the precise question presented for our decision.

The judgment against the estate of O. H. McNider has been paid, the estate has been closed, and the executors are not involved in or affected by the matter now before jjs. The parties stipulated, before this appeal was taken, that the Northwestern States Portland Cement Company would not appeal from any part of the court’s order, except that which made an allowance to Ontjes, and that it would not challenge the amount of such allowance. Even so, it is important to bear in mind the basis for the allowance that was made.

The court allowed Ontjes nothing for fees or expenses incident to the injunction case (Ontjes v. Bagley, supra, 217 Iowa 1200, 250 N. W. 17), the certiorari action (Bagley v. District Court, supra, 218 Iowa 34, 254 N. W. 26), or the proceedings involving the joinder of actions and parties (Ontjes v.

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Bluebook (online)
12 N.W.2d 284, 234 Iowa 208, 1943 Iowa Sup. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ontjes-v-macnider-iowa-1943.