Ringen Stove Co. v. Bowers

80 N.W. 318, 109 Iowa 175
CourtSupreme Court of Iowa
DecidedOctober 7, 1899
StatusPublished
Cited by6 cases

This text of 80 N.W. 318 (Ringen Stove Co. v. Bowers) 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
Ringen Stove Co. v. Bowers, 80 N.W. 318, 109 Iowa 175 (iowa 1899).

Opinion

Ladd, J.

The assignee for the benefit of creditors is not only a trustee for them, but for the assignor as well, who retains a contingent interest in the estate. The balance remaining after the satisfaction of debts and expenses of administration belongs to the assignor. His interest may be likened to that of the mortgagor of personal property. He is interested, then, in the minimum allowance being made on claims filed, and in the maximum amount being received on debts due and for goods sold. The interest of the assignee, as the trustee of both debtor and creditor-, to this extent is identical with that of the assignor. Indeed, this is always true, save when the assignee peculiarly represents the creditor in attempting to remedy a prior wrong of the debtor, as in having a conveyance set aside as fraud ulent, Schaller v. [178]*178Wright, 70 Iowa, 668. The property, however, is in. custodia legis, and the assignee, an officer of the court, subject to its 1 supervision. Shoe Co. v. Mercer, 84 Iowa, 537. That the chose in action against the plaintiff for wrongfully suing out the writ of attachment passed to1 the assignee under the general assignment is not'questioned, and by section 3084 of the Code he is expressly authorized to “sue for and recover in his own name everything belonging or appertaining 1» said estate and generally do whatever the debtor might have done in the premises.” The very evident purpose of this section is to confer on the assignee the same rights and remedies relating to the estate as were possessed by the assignor. The remedy is on the attachment bond, and by section 3888 the defendant “may in his discretion sue thereon by way of counterclaim, and in such case shall recover damages as in the original action.” Is there any reason why the assignee should not be permitted to defend in the action instead of the assignor, who- was sued, or with him, and avail himself of the same remedies? He has precisely the same interest in the litigation. In Dunham v. Greenbaum, 56 Iowa, 303, the court said: “It is very plain that, if the claims in the hands of the assignee may be enforced 'in the attachment actions, thereby the plaintiff’s judgments will be wholly defeated, or reduced in part, or judgments for damages may be recovered against the plaintiffs. In either case, the benefits ought to go to the estate held by the assignee. The assignee is entitled to the same rights and remedies for the enforcement of these claims as were held, before the assignment, by the defendants. * * * If the claims be established to any extent, the estate which he represents will be benefited thereby. If there shall be judgments against plaintiffs for' sums greater than the amounts of tire debts of the defendants, the estate will be entitled to the proceeds gained therefrom.” The appellant undertakes to distinguish that case from the one at bar on the ground that the defendant had there [179]*179pleaded a counterclaim before tbe petition of intervention had been filed, while in this case the defendant afterwards pleaded a counterclaim and joined in the prayer of the intervening assignee for damages. Section 3594 of the Code authorizes “any person who has an interest in the matter in litigation, in the success of either of the parties to action, or against both, may become a party to an action 'between other persons, either by joining the plaintiff in claiming what is sought by the petition, or by uniting with the defendant in resisting the claim of the plaintiff, or by demanding anything adversely to both the plaintiff and defendant, either before or after issue has been joined in the cause, and before the trial commences.” It will be observed that the intervention may be had before issue joined, and. we think it is quite immaterial in what order the pleadings were placed on file, and whether the defendant joined the intervener or vice versa. They had joined in the prayer for relief before the motion to strike had been filed, and we think had the right to have the counter-claim adjudicated in this action. Apart from the order in which the pleadings were filed, the case of Dunham v. Greenbaum is precisely in point. The plaintiff was not deprived by the procedure of a hearing, but the ruling simply required the issue as to the wrongfulness of its action in suing out the writ to be adjudicated in the very court Whose jurisdiction it had invoked. This was in promotion of justice, and should be upheld.

II. It is said that in overruling the motion for judgment delay was occasioned. Section 3595 of the Code requires that “the court shall determine upon the intervention at the same time the action is decided, and the intervener 2 have no right to delay.” This evidently refers to a delay of trial, and not to such delay as may result from an immediate trial. A trial might postpone the rendition of judgment, but if the intervener, by his action, does not occasion any postponement, he is not [180]*180within the prohibition of this statute. The authorities relied upon by the appellant are not in point. In Lee v. Elevator Co., 42 Iowa, 36, the petition of intervention was filed after the settlement. In Teachoul v. Railway Co., 15 Iowa, 728, and Dupont & Co. v. Amos, 97 Iowa, 484, a continuance would have resulted. There is no showing that any postponement was made necessary because of the intervention.

III. It is asserted that the counterclaim cannot be maintained, for that the intervener did not own the cause of action at the time suit was begun. This counterclaim was 3 pleaded under the special provision of section 3888 -of the Code. The right of action accrued upon the filing of the petition. Reed v. Chubb, 9 Iowa, 178. In Rumsey v. Robinson, 58 Iowa, 225, the suit was brought after the general assignment to' Foster, and the claim for damages was assigned by Foster to the defendants. As Foster’s claim was procured after the suit was begun, it was held that the counterclaim could not be maintained thereon. The case is not in point, though some language used may tend to support appellant’s contention. As the defendant and intervener join in their prayer for relief, the right to prosecute the counterclaim is that expressly given by the above section of the Code.

IY. The deed of assignment of Ilornish contained this clause: “Subject to a mortgage heretofore given to the Keokuk Bank, Keokuk, Iowa.” Without that clause, the conveyance 4 would have been subject to all valid prior liens. Meyer v. Evans, 66 Iowa, 184; In re Windhorst, 107 Iowa, 58; Smith v. Seed Co., 109 Iowa, 51. If then, the mortgage was valid, the insertion of the clause added nothing, and did not detract from the deed. The particular objection is that the assignee in accepting the trust, and the creditors in filing their claims, might be estopped from contesting the validity of the mortgage. We are of opinion that it would not have, that effect. The deed declared “the purpose and intention to be to make an assignment for the benefit of [181]*181all creditors.” Such a conveyance of properly oilier than that exempt was upheld in Bradley v. Bischel, 80 Iowa, 82. See Perry v. Vezina, 63 Iowa, 26. In Shoe Co. v. Mercer, supra, fictitious claims were included in the list of creditors attached to the deed, and the assignee was held not to be estopped from contesting their validity. In Schaller v. Wright,

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Bluebook (online)
80 N.W. 318, 109 Iowa 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ringen-stove-co-v-bowers-iowa-1899.