Trees v. Glenn

23 Pa. D. & C. 78, 1934 Pa. Dist. & Cnty. Dec. LEXIS 210
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedSeptember 26, 1934
Docketno. 3062
StatusPublished

This text of 23 Pa. D. & C. 78 (Trees v. Glenn) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trees v. Glenn, 23 Pa. D. & C. 78, 1934 Pa. Dist. & Cnty. Dec. LEXIS 210 (Pa. Super. Ct. 1934).

Opinion

Gray, J.,

Plaintiffs seek to restrain defendant from prosecuting a bill of complaint by him against plaintiffs at no. 5, June term, 1932, in the Court of Common Pleas of Butler County, on the ground that the cause of action set up in that case is the same as the cause of action in a bill in equity by Coulter E. Glenn, a brother of defendant, at no. 2152, January term, 1917, in our court, in which the defendant was held to be a party plaintiff on account of his having the same interest as his brother, and being a witness, and paying part of the expenses, plaintiffs contending that the filing of the equity action in Butler County is a vexatious use of legal process and that the decree in this court is res adjudicata of the cause of action stated in the said bill in equity in the Court of Common Pleas of Butler County.

Defendant has filed preliminary objections to the bill on a number of grounds, most of which are not within our rule of court, in our opinion, but the substance of all of [80]*80which is that the decree of this court is not res adjudicata of the cause of action alleged in the bill in equity in the Court of Common Pleas of Butler County, and that plaintiffs should be required to present the matters alleged in their bill here as a defense in the action in that court.

We have taken great pains to.examine the record at no. 2152, January term, 1917, and the three appeals to the Supreme Court taken in that case, and after consideration of the record and the arguments and briefs of counsel, have concluded that the preliminary objections to the bill must be dismissed.

The bill in the Court of Common Pleas of Butler County charges that about the month of October, 1909, the defendants (plaintiffs, Trees and Benedum, in this case), who held a controlling interest in the J. C. Trees Oil Company, caused to be transferred to the Arkansas Natural Gas Company certain gas rights owned by the J. C. Trees Oil Company for a large number of shares of the capital stock of the Arkansas Natural Gas Company, and that said defendants fraudulently concealed from plaintiff (defendant in this case), who was a minority stockholder in the J. C. Trees Oil Company, the amount of the consideration for the transfer of such gas rights, and fraudulently represented that there was no consideration paid therefor, and that said defendants fraudulently converted said consideration to their own use, and prays for a discovery of the facts in regard to the transfer of said gas rights and consideration therefor and for an accounting thereof.

In the bill in equity at no. 2152, January term, 1917, defendant’s brother, Coulter E. Glenn, on behalf of himself and such other stockholders of J. C. Trees Oil Company as might wish to join in the suit, one of whom was the defendant in this action, who actually did join in the suit by testifying in it and paying part of the expenses of it, complained of fraudulent action of the plaintiffs in this case in reference to the transfer of certain oil rights [81]*81owned by the J. C. Trees Oil Company, in which all the parties were interested. This complaint related to a very large transaction and, in reference to it, the complaint was that plaintiffs in this case fraudulently converted to their own use $1,850,000 derived from the sale of oil rights. In the seventeenth paragraph of that bill, plaintiff therein alleged that certain gas rights owned by the J. C. Trees Oil Company were sold to the Arkansas Natural Gas Company, they being the same gas rights described in the bill in equity in the Court of Common Pleas of Butler County, and that the defendants (plaintiffs here) concealed from plaintiff therein the terms of sale of said gas rights.

In paragraph seventeen of the answer in that case, defendants therein stated that the gas rights referred to in the bill of complaint had been sold to the Arkansas Natural Gas Company prior to November 3,1910; that these gas rights were not included in the sale of the oil rights mentioned in the bill of complaint; and in that paragraph of their answer said defendants averred plaintiff in that action was fully informed as to the terms of the sale of the gas rights.

In the bill in equity at no. 2152, January term, 1917, plaintiff prayed that defendants, Trees and Benedum, in the action in the court of Butler County, be ordered to disclose to the stockholders of the J. C. Trees Oil Company, especially the plaintiff, the agreement between the J. C. Trees Oil Company and the Arkansas Natural Gas Company for the sale of gas rights, and that said defendants be required to render an account of any and all sums of money and property belonging to the J. C. Trees Oil Company derived from any source whatsoever which had come into the hands of said defendants or any of them.

From this it will appear that the question involved in the action in the court of Butler County' was clearly stated in the pleadings in the action in equity in this court at no. 2152, January term, 1917. As a matter of fact, the [82]*82attention of the parties and the court in the action at no. 2152, January term, 1917, was concentrated on the question involved in reference to the oil rights referred to in the bill, and in the adjudication the sale of the gas rights to the Arkansas Natural Gas Company was only mentioned incidentally. Apparently the plaintiff abandoned his claim that any fraud or wrong was committed in the transfer of the gas rights. But the chancellor did make a finding of fact that the allegations of the bill of complaint as to the quantity of the acreage of the gas leases were not correct and that there were only 14,000 acres of gas leases and not 100,000 acres as was alleged in the bill in this court and as also alleged in the bill in Butler County; and the chancellor also found, in general terms that: “There is no evidence of fraud in this case on the part of the individual defendants in their dealings with J. C. Trees Oil Company or with the plaintiff”, and dismissed the bill.

In City of Corry v. The Corry Chair Co., 18 Pa. Superior Ct. 271, 281, the court said:

‘A judgment settles everything involved in the right, not only matters that were raised, but those which might have been raised’. . . . ‘The rule that what has been judicially determined shall not again be made the subject of controversy extends to every question in the proceeding which was legally cognizable, and applies when a party has neglected the opportunity of trial or has failed to present his cause or defense in whole or in part under the mistaken belief that the matter would remain open and could be made the subject of another proceeding’ ”.

In Exler v. Wickes Brothers, 263 Pa. 150, 154, the Supreme Court said: “A suit determines not only what was but what might have been litigated therein”.

In Buck v. Wilson et al., 113 Pa. 423, the court said: “To permit a party to recover in a second action what was included in and might have been recovered in the first, would be against the policy of the law and unjust, because [83]*83it would harass a defendant and expose him to double costs”.

On the authority of the case just cited, and others to which reference could be made, we are of the opinion that the judgment of this court at no. 2152, January term, 1917, is res adjudicata of the right of action claimed by defendant in the action in the Court of Common Pleas of Butler County, Pennsylvania.

This court has jurisdiction to restrain the defendant personally from prosecuting his action at no.

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Related

Buck v. Wilson
6 A. 97 (Supreme Court of Pennsylvania, 1886)
Lyons v. Importers' & Traders' National Bank
63 A. 827 (Supreme Court of Pennsylvania, 1906)
Exler v. Wickes Bros.
106 A. 233 (Supreme Court of Pennsylvania, 1919)
City of Corry v. Corry Chair Co.
18 Pa. Super. 271 (Superior Court of Pennsylvania, 1901)

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Bluebook (online)
23 Pa. D. & C. 78, 1934 Pa. Dist. & Cnty. Dec. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trees-v-glenn-pactcomplallegh-1934.