Simon v. Trummer

110 P. 786, 57 Or. 153, 1910 Ore. LEXIS 23
CourtOregon Supreme Court
DecidedSeptember 13, 1910
StatusPublished
Cited by9 cases

This text of 110 P. 786 (Simon v. Trummer) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simon v. Trummer, 110 P. 786, 57 Or. 153, 1910 Ore. LEXIS 23 (Or. 1910).

Opinion

Opinion by

Mr. Chief Justice Moore.

1. It is contended that the conclusion of law is not deducible from the findings of fact, and hence the judgment given is erroneous. It is argued that plaintiff was the trustee of an express trust and authorized to maintain the actions without joining with him M. A. Gunst & Co., [157]*157or averring in the complaints that he prosecuted the causes for its use and benefit.

Our statute demands that every action shall be prosecuted in the name of the real party in interest, except as otherwise provided in Section 29. Section 27, B. & C. Comp. The section thus referred to is, so far as material herein, as follows:

“A trustee of an express trust * * may sue without joining with him the person for whose benefit the action is prosecuted. A person with whom, or in whose name a contract is made for the benefit of another is a trustee of an express trust within the meaning of this section.” Section 29, B. & C. Comp.

Though these are ex delicto actions, the lease and the relation existing between plaintiff and M. A. Gunst & Co. become important in order to ascertain Simon’s right to redress for the alleged injury sustained. When a written contract stipulates that it was made for the benefit of others of a specified class, or for a particular person, or when it designates a party as “trustee” — the latter term not being used as descriptio personae — an express trust, within the meaning of the statute, is hereby created, authorizing such party to maintain an action on the contract without joining with him the beneficiary: United States v. McCann, 40 Or. 13 (66 Pac. 274) ; Wright v. Conservative Invest. Co., 49 Or. 177 (89 Pac. 387); Heavenridge v. Mondy, 34 Ind. 28.

2. Under, a statute of New York which authorized a trustee of an express trust to maintain an action, without joining with him the person for whose benefit the cause was prosecuted, and prior to an amendment declaring that a person with whom or in whose name a contract was made for the benefit of another was a trustee of an express trust within the meaning of the original enactment, it was held that a factor or mercantile agent who contracted in his own name on behalf of his principal was [158]*158a trustee of an express trust and the proper party to bring the action upon the contract: Grinnell v. Schmidt, 2 Sandf. (N. Y.) 706; In referring to the decision in that case Mr. Chief Justice Dixon, in Robbins v. Deverill, 20 Wis. 150, 152, observes:

“In order to constitute a trustee of an express trust, as I understand the statute, there must be some express agreement to that effect, or something which in law is equivalent to such an agreement. The case of factors and mercantile agents may or may not constitute an exception, under the custom and usage of merchants.”

A public auctioneer who sells goods for another may maintain an action for the price, although he has received his advances and commissions, and had no interest in the property sold or its proceeds: Minturn v. Main, 7 N. Y. 220, 224. In deciding that case it is said:

“An auctioneer has such a special property or interest in the subject-matter of the sale that he may sue in his own name, unless the principal or real owner elect to bring the action in his name (Chitty, Contr. 185.) And it is not necessary to prove that he has a special property or interest, for that flows as a matter of course from his position as an auctioneer, and it is only where a party acts as a mere agent or servant that a special beneficial interest must be proved to maintain an action, or may be disproved to defeat it.”

As a corollary from the legal principle thus stated, it follows that an action cannot be prosecuted for a principal in the name of a “mere” agent who has no personal interest in the subject-matter: Mitchell v. St. Mary, 148 Ind. 111, 115 (47 N. E. 224.) If, however, an agent has a part in the contract to which he is made a party, or has a particular property in the subject-matter of the agreement, the legal interest and the right of action are vested in him: Bryan v. Wilson 27 Ala. 208, 214; United States Tel. Co. v. Gildersleve, 29 Md. 232, 245 (96 Am. Dec. 519) ; Porter v. Raymond, 53 N. H. 519, 526.

[159]*1593. The findings of fact herein do not state that plaintiff was a “mere” agent, or that he had no beneficial interest in the land or in the damages resulting from a detention of its possession. The circumstance that he had not assigned the lease to his principal would seem to imply that a special property or right in the leasehold estate was retained by him, notwithstanding the corporation occupied the premises with his consent. The payment of the rent and of the costs and expenses incurred in securing a dissolution of the injunction, though made by the principal, is not regarded as necessarily controlling or inevitably calculated to defeat a recovery by the managing agent. The plaintiff’s right to maintain the actions not having been sufficiently negatived, the findings of fact do not in our opinion support the conclusion of law based thereon.

4. In view of the determination thus reached, it is deemed essential to advert to another feature of the case, though the action of the court in relation thereto is not assigned as error. The question of plaintiff’s want of interest in the subject-matter does not seem to have been raised. The pleadings have been set forth at some length to show what issues are involved. As it appears from the complaints that Simon is the real party in interest, his authority to prosecute the causes could not have been successfully challenged by demurrer: Porter v. Clements, 3 Ark. 364, 382; Zimmerman v. Schoenfeldt, 3 Hun (N. Y.) 692, 698; State v. Sappington, 68 Mo. 454, 457; Fisher v. Hall, 41 N. Y. 416, 424; Robinson v. Smith, 3 Paige (N. Y.) 222, 230 (24 Am. Dec. 212.)

5. If M. A. Gunst & Co. was a necessary party, its nonjoinder with plaintiff in an action ex delicto could not have been proved under the general issue: 31 Cyc. 691; Abbe v. Clark, 31 Barb. 238, 240; Brotherson v. Hodges, 6 Johns (N. Y.) 108. An apparent exception to this rule exists in that class of actions when instituted by a party [160]*160who has a joint interest in the subject-matter, in which case the question of nonjoinder may be given in evidence under the general issue in diminution of the indemnity demanded: 1 Enc. Pl. & Pr. 15; Branch v. Doane, 17 Conn. 401, 415; Jones v. Lowell, 85 Me. 538, 540; Cooper v. Grand Trunk Ry., 49 N. H. 209, 212. This legal principle is thus stated by Mr. Chief Justice Kent in Wheelwright v. Depeyster, 1 Johns. (N. Y.) 471, 486 (3 Am. Dec. 345) :

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Bluebook (online)
110 P. 786, 57 Or. 153, 1910 Ore. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simon-v-trummer-or-1910.