Sweeney v. Jackson County

178 P. 365, 93 Or. 96, 1919 Ore. LEXIS 151
CourtOregon Supreme Court
DecidedFebruary 11, 1919
StatusPublished
Cited by29 cases

This text of 178 P. 365 (Sweeney v. Jackson County) 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
Sweeney v. Jackson County, 178 P. 365, 93 Or. 96, 1919 Ore. LEXIS 151 (Or. 1919).

Opinions

BEAN, J.

The first question presented for consideration is in regard to the motion to quash, for the reason the suit was commenced in the wrong county. It is evident that the suit is embraced within that portion of Section 396, subdivision 3, L. O. L., which enacts that:

“In all other cases, the suit shall be commenced and tried in the county in which the defendants, or either of them, reside, or may be found at the commencement of the suit.”

The defendant bank is an institution of Multnomah County. This question therefore depends upon whether or not the bank, was a necessary or proper party defendant. If it is, then the suit was properly commenced in Multnomah County. Section 393, L. O. L., which prescribes who may be plaintiffs and defendants, provides in part that:

“Any person may be made a defendant who has or claims an interest in the controversy adverse to the plaintiff, or who is a necessary party to a complete [108]*108determination or settlement of the questions involved therein. ’ ’

The record discloses that both the county and the bank claimed that the estimate of the amount due plaintiff was in fact final and was in the nature of an adjudication fixing the amount due the plaintiff from the county. The bank was the assignee of all of the interest of the plaintiff by virtue of the estimate. The bank insisted that the estimate could not be set aside to its prejudice; and the complaint prayed that notwithstanding the claim of the bank that a decree be entered fixing a new and correct estimate which should be paramount to any rights or claims of the bank under its assignment and that the bank be enjoined from asserting that the estimate was final and binding on the plaintiff. According to the claim made by the bank, it was the owner by virtue of the assignment as collateral security of the whole amount due Sweeney from plaintiff. Therefore, if this is correct, the bank would have had the right to have instituted an independent action upon the claim, and would not have been compelled to wait from April, 1915, until the present litigation is concluded. This interest of the bank in having the $35,573.56 paid to it instead of having the claim assigned to it, declared to be an equitable assignment of only a’ portion of plaintiff’s demand from the county, was wholly adverse to plaintiff’s interest. In order that the bank should not commence such an independent action, and that all questions involved between the plaintiff and the county might be completely settled, it was necessary to make the bank a party to the suit. If the plaintiff had proceeded against the county alone, he would probably have been met at the inception of the litigation by an objection [109]*109that the bank, because of its assignment, was a necessary party. It is the policy of courts of equity that whenever a cause is presented^ where judgment is sought upon a controversy between the parties before the court, to have all of the parties present, whose rights are so interwoven; whenever such parties can be brought in so as not to infringe upon the rights of those who are absent by a decree which would necessarily affect their interests, or if the presence of any such party would defeat the jurisdiction, then the court will dismiss the suit: California v. Southern Pacific Co., 157 U. S. 229 (39 L. Ed. 683, 15 Sup. Ct. Rep. 591); United States v. Northern Pacific R. R. Co., 134 Fed. 715 (67 C. C. A. 269). The demand of the plaintiff was that the alleged final estimate or award be declared to be only a partial or preliminary estimate. Under these circumstances, the bank claiming the assignment of an adjudicated claim was not a mere nominal party. If upon the trial, the final estimate should be set aside or declared not to be such a final estimate, the claim of the bank then would be in the same condition as any other preliminary estimate of unsettled account. The answer of the county to the answer of the bank denied any interest in the bank to protect and denied that the plaintiff had made any assignment to the bank, or that there was due the bank any sum whatever. The provisions of the decree, in so far as the bank is concerned, established the necessity for its presence, and that it had rights which were determined according to the contentions of plaintiff. According to the decree of the trial court, the transaction between the plaintiff and the bank operated as an equitable assignment of a part of the money due plaintiff. In the case of Willard v. Bullen, 41 Or. 25 (67 Pac. 924, 68 Pac. 422), Bullen had a contract with [110]*110the City of Portland to erect a bridge. He gave as collateral security, orders on the city to the Commercial National Bank, and others, some of which were “payable out of the final estimate,” and others “payable out of the next estimate or payment due under the terms of the contract.” These orders were presented to the city, but before they were paid, or a final settlement was made, suit was brought by plaintiff who claimed to be a partner of Bullen.

This court said:

“The orders in favor of the Commercial National Bank, The North Pacific Lumber Co., Kelly, Dunne & Co. and Jacobson operated as an equitable assignment of a part of the fund, and gave to these order claimants a prior right to be paid out of such fund before the general creditors.”

As to an interest acquired by an equitable assignment: See McDaniel v. Maxwell, 21 Or. 202 (27 Pac. 952, 28 Am. St. Rep. 740). The rule adopted in this state in the latter case is that an assignment of a part of an entire demand is good in equity, and operates When delivered to the payee as an equitable assignment or appropriation of the fund pro tanto, and no acceptance by the drawee is necessary: Citing 3 Pomeroy’s Equity, § 1280; Brill v. Tuttle, 81 N. Y. 454 (37 Am. Rep. 515); First National Bank v. Kimberlands, 16 W. Va. 555; Harris County v. Campbell, 68 Tex. 22 (3 S. W. 343, 2 Am. St. Rep. 467); Hutchinson v. Simon, 57 Miss. 628; James v. City of Newton, 142 Mass. 366 (8 N. E. 122, 56 Am. Rep. 692). In 4 Cyc. 103, the rule as to parties is stated as follows:

“When it appears in a proceeding in equity that the subject matter, or an interest therein, has been assigned, the assignee is a necessary party to the proceeding brought by the assignor, or against him.”

[111]*1111. In the determination as to whether or not there has been a proper joinder of parties defendant, it must depend largely upon the case as stated by the plaintiff in his complaint, however it may turn out upon the merits: Rountree v. Mt. Hood R. Co. (D. C.), 228 Fed. 1010. “The motive of the plaintiff,” says the court in Chicago, Rock Island & Pacific Ry. Co. v. Schwyhart, 227 U. S. 184, 193 (57 L. Ed. 473, 33 Sup. Ct. Rep. 250, 251), “taken by itself does not affect the right to remove. He has an absolute right to enforce it whenever the reason makes him wish to assert the right.”

The county bases its claim that the bank was not a necessary party upon decisions involving facts which are dissimilar to those in the present case. In Allen v. Miller, 11 Ohio St.

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Bluebook (online)
178 P. 365, 93 Or. 96, 1919 Ore. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sweeney-v-jackson-county-or-1919.