Schuster Bros. v. Davis Bros.

185 Iowa 143
CourtSupreme Court of Iowa
DecidedJanuary 14, 1919
StatusPublished
Cited by10 cases

This text of 185 Iowa 143 (Schuster Bros. v. Davis Bros.) 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
Schuster Bros. v. Davis Bros., 185 Iowa 143 (iowa 1919).

Opinion

Salinger, J.

‘ absence of prayer. I. The plaintiffs obtained judgment against the defendant Davis Brothers, Incorporated. For the purposes of the point now under consideration, it suffices to say that the petition alleges: First, that the defendants Jenkin E. Davis and John W. Davis conspired together for the purpose of fraudulently taking title to described real property in their own names; that their purpose was to place said property beyond the reach of any creditors of the corporation; and that it was part of the conspiracy to pay for the property with funds belonging to the corporation; that they had power so to pay and did so because they were the officers and' directors of the corporation; second, that the two Davises, acting as officers and directors of the corporation, have, for many years, represented to “their” crédito « (meaning, probably, the creditors of the corporation) that the property, the title to which they had placed in their individual names, was the property of the corporation, and thereby induced the creditors to furnish merchandise to the corporation; and that said judgments were obtained because the creditors were not paid for that merchandise; third, that the Davises violated the statute governing in-corporations; that, on account of the imperfect and improper organization and the fraudulent management of the business of the corporation by the Davises, as well as on account of the other matters aforesaid, the two Davises are personally liable to plaintiffs for what the corporation owes the plaintiffs. It is further alleged that, notwithstanding the placing of the title of property out of which the [145]*145creditors seek satisfaction in the individual name of the two Davises, the equitable title thereto is in the defendant incorporation, and that the plaintiffs have a lien on said real estate to satisfy their said judgments.

2. appeal and to^nesHon"” of'actíon.cause Assume it debatable whether, if all that is charged were admitted, it would make the two Davises personally liable to pay the debts owing by the corporation, or a judgment obtained against the corporation alone. But the petition was in no manner attacked, and if these allegations are proved, the defendants Jenkin E. Davis and John W. Davis are in no position to say that the facts set forth in the petition do not create such personal liability. But something more than plea and proof is necessary for relief, and that is, prayer for relief. One. prayer of the petition is that a receiver be appointed to take charge of the property in question. None was appointed. The only other demand for relief is, “that their judgment be declared a first lien on the property above described from October 13, 1904.” On this prayer, the decree not only established the lien prayed, but ordered personal judgment against the two Davises, and special execution to make any deficiency on sale of the property. This was done because the court found that they had been guilty of fraudulent conduct in organizing and managing the corporation, and possibly, also, because of a finding that said other matters charged were established. In addition, and without even an allegation of fact to cover the point, personal judgment was entered against defendant Evans on the theory that he had become the holder of $200 of shares in the defendant corporation, of the par value of $200, without making payment therefor. As to the defendants Jenkin E. Davis and John W. Davis, this much of the decree cannot be sustained, for want of prayer therefor. As to the defendant Evans, the same is true, and, in addition, there is no allegation of fact whereon to base the relief.

[146]*1463. pleading : necessity for prayer, etc. Section 3559 of the Code provides that, among other things, the petition shall contain a demand of the relief to which the plaintiff considers himself entitled. This requirement has some purpose, and would seem to indicate on its face that no relief not so demanded shall he given. While it is said ■ in Browne v. Kiel, 117 Iowa 316, at 318, that “a judgment must follow the prayer for relief, and cannot be extended beyond it,” this hardly controls here, because the judgment spoken to in that case was on default, and is governed by a special statute. Perhaps the declaration of Byam v. Cook, 21 Iowa 392, that, in a suit in equity, relief will not be granted which was not asked in the petition, is also not controlling, because this was said in a case where the court u refused to grant such relief. But from Stokes v. Sprague, 110 Iowa 89, it can well be inferred that nothing should be awarded beyond the relief demanded, because the decision recognizes that the prayer is material, in that it holds that a demurrer in an equity suit is sufficient in form where it complies with the statute form by charging that the facts stated do not . entitle plaintiff to the relief demanded. In Baker v. Oughton, 130 Iowa 35, it is declared to be error not to'instruct that no more should be allowed on a single item, in an account exhibiting several items, than was claimed for that item, though ,the verdict was less than the aggregate amount of all the items. We held in Mobley v. Dubuque Gas L. & C. Co., 11 Iowa 71, that a court of equity will not decree foreclosure against a defendant when the bill asks; for no such decree. In Marder, Luse & Co. v. Wright, 70 Iowa 42, suit in equity to enforce a vendor’s lien, it was held error to grant relief entirely distinct from that demanded in the petition., even though such relief might be warranted by allegations of the reply, if that were the pleading in which to ask relief. In District Twp. v. Farmers’ Bank, 88 Iowa 194, there was a reversal, among other [147]*147things because relief was granted where no relief of the kind was asked. In Lafever v. Stone, 55 Iowa 49, it is conceded the court had jurisdiction to grant the relief given, were it prayed, and there was a reversal for the sole reason that, while there was power to give such relief, it was improperly granted because not prayed for. It is squarely ruled in Tice v. Derby, 59 Iowa 312, that neither party should be granted relief greater than is demanded. In that case, a suit to quiet title, the court decreed plaintiff a larger interest than he claimed. It is said in Bottorff v. Lewis, 121 Iowa 27, 31, 32, that it was error to award the plaintiff seven thirtieths o.f land involved in a partition suit when she asked for but a tenth interest, and said that:

“We have uniformly held it is error for the court to grant relief not called for by the petition, or a judgment or decree different from that prayed for.”

Among other cases, this case cites Marder, Luse & Co. v. Wright, 70 Iowa 42, District Twp. v. Farmers’ Bank, 88 Iowa 194, and Tice v. Derby, 59 Iowa 312, upon which we have already commented. The departure, then, was more radical than in all said cases.

The personal judgments cannot be sustained.

4t Corpora- ‘ tions : equiship6 of'property' II. We have disposed of those allegations of the petition wherewith it is attempted to base a personal liability of the defendants other than the defendant corporation. It will be remembered the petition does ask the relief of establishing the judgments obtained by the plaintiffs against the defendant eorporation as a. lien upon certain property.

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