Producers Livestock Marketing Ass'n v. Livingston

250 N.W. 602, 216 Iowa 1257
CourtSupreme Court of Iowa
DecidedOctober 24, 1933
DocketNo. 42197.
StatusPublished
Cited by4 cases

This text of 250 N.W. 602 (Producers Livestock Marketing Ass'n v. Livingston) 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
Producers Livestock Marketing Ass'n v. Livingston, 250 N.W. 602, 216 Iowa 1257 (iowa 1933).

Opinion

Kindig, J.

This is an action brought by the Producers Livestock Marketing Association, a Kansas corporation, with its headquarters at St. Joseph, Missouri, the plaintiff-appellant, to recover damages from the defendants-appellees R. B. Livingston and C. M. Livingston, a copartnership doing business as Livingston Bros., Ralph Warner, Monroe State Bank, of Monroe, Iowa, a corporation, and John Morrell & Company, a corporation, for the conversion of 83 head of steers.

*1259 The point to be determined upon this appeal relates to the correctness of the district court’s ruling on the motion of the appellee John Morrell & Company to strike: First, all causes of action against its codefendants; and, second, all of its codefendants as parties to this action.

That motion was founded upon the theory that several causes of action based upon the separate and distinct conversion by each appellee, as distinguished from a joint cause based upon a single conversion committed by all the appellees, were alleged in the appellant’s petition. In order for the reader to fully understand the propositions involved, it is essential now to state the facts, as disclosed by the appellant’s petition filed in this cause.

On December 31, 1930, R. B. and C. M. Livingston, residents of Marion county, Iowa, executed to the National Live Stock Credit. Corporation of the National Stock Yards, 111., a note for $13,226, secured by a chattel mortgage. Thereafter, in January, 1931, the mortgage was filed in the office, and indexed on the records, of the county recorder of Marion county. Apparently for the purpose of correcting an error, on January 19, 1931, the same mortgagors executed to the same mortgagee another chattel mortgage. Likewise, on January 23, 1931, the second mortgage was filed in the office, and indexed on the records, of the county recorder of Marion county. Following the execution of the mortgages, and before the alleged conversion herein discussed, the mortgagors, prior to October 17, 1931, sold 100 head of steers and delivered the proceeds thereof to the mortgagee. Accordingly, the mortgagee credited the note, secured by the mortgage, with the proceeds thus received. After thus crediting the mortgagors with the proceeds from the sale of the 100 head of steers, there still remained due on the note and mortgage $4,960.

It appears that the appellant, on November 25, 1931, by assignment became the owner and holder of the chattel mortgage and the partially paid note secured thereby. But before the assignment, and while the appellant’s assignor thus owned the mortgage and partly paid note, the appellees Livingston Brothers on October 27, 1931, sold to Ralph Warner, an appellee, the remaining 83 head of steers. Ralph Warner thereupon received and took possession of the steers. As a part of that transaction, Ralph Warner issued his check for $4,960 on the appellee Monroe State Bank, payable to the said Livingstons. Thereupon the Livingstons indorsed the check *1260 and delivered it to the appellant. Subsequent to the purchase of the cattle by Ralph Warner, he, in turn, on October 27, 1931, sold the cattle to John Morrell & Company, an appellee. When shipping the cattle to John Morrell & Company, Ralph Warner drew a sight draft on it payable through the Monroe State Bank. Consequently John Morrell & Company paid the sight draft to the Monroe State Bank, and obtained the cattle. But, when Ralph Warner’s check was presented by the appellant as indorsee to the drawee bank, it refused to honor the same on the theory that there were no funds therefor. Whether the proceeds of the sight draft paid by Morrell & Company were retained by the Monroe State Bank to satisfy obligations which Ralph Warner may have owed it, does not appear in the record.

In any event, the appellant, on January 23, 1933, commenced the present action to recover from all the appellees, as before suggested, $4,960, with interest at the rate of 6 per cent, per annum from October 27, 1931. As a basis for its cause of action, the appellant in its petition sets forth the facts hereinabove related. This action was commenced in Marion county, where the Livingstons reside. None of the other appellees are residents of that county. John Morrell & Company is a resident of Wapello county, and the Monroe State Bank maintains its residence in Jasper county. Nothing appears in the petition concerning the residence of Ralph Warner, but it is said that in an earlier petition filed in that cause his residence appears as Jasper county. When deciding the controversy, the district court appears to have assumed that Ralph Warner resided in Jasper county. No controversy is raised on this appeal concerning the assumption that Ralph Warner resides in Jasper county. Both parties argue the merits of the controversy as if Ralph Warner were a resident of Jasper county.

- According to the petition, the appellant predicates its action for the conversion of the steers against the appellees on the- theory that Ralph Warner had constructive notice and knowledge of the mortgage, and that John Morrell & Company and the Monroe State Bank had actual, as well as constructive, notice and knowledge of the mortgage.

On February 13, 1931, John Morrell & Company filed its motion to strike based upon the theory of misjoinder, as before explained. The motion contained two parts, as previously set forth. These parts were, to repeat: First, the movant asked that every *1261 purported cause of action alleged in the petition against the co-defendants of John Morrell & Company be stricken; and second, the movant asked that each of its codefendants be stricken as a party to the action. After consideration, the district court sustained the motion on the theory of misjoinder. Upon this appeal the appellant presents no question except the correctness of that ruling. Therefore the correctness or the incorrectness of that ruling is the only question for our consideration at this time.

Was there a misjoinder of causes of action and of parties? It is apparently assumed by the parties on this appeal that the misjoinder of parties is to be determined upon the same theory as a misjoinder of causes of action. When considering the arguments therefor, we adopt the theory of the parties without deciding the correctness thereof. Ordinarily, a defendant is entitled to be sued in the county of his residence. Kosman v. Thompson, 204 Iowa 1254, 215 N. W. 261. So, generally speaking, John Morrell & Company, in a personal action, should be sued in Wapello county. Kosman v. Thompson (204 Iowa 1254, 215 N. W. 261), supra; Hoyt v. Eckles, 196 Iowa 385, 193 N. W. 578; section 11049, 1931 Code. Section 11049 provides:

“Personal actions, except as otherwise provided, must be brought in a county in which some of the defendants actually reside. * * * ”

Livingston Brothers, as before seen, are residents of Marion county. Accordingly the appellant, under the provisions of section 11049, attempted to bring the other appellees, residents of other counties, into Marion county. The appellant could do that providing its cause of action against those appellees could be joined in the one proceeding. Section 10960, 1931 Code. There it is provided:

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Bluebook (online)
250 N.W. 602, 216 Iowa 1257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/producers-livestock-marketing-assn-v-livingston-iowa-1933.