Weil v. Defenbach

208 P. 1025, 36 Idaho 37, 1922 Ida. LEXIS 128
CourtIdaho Supreme Court
DecidedAugust 5, 1922
StatusPublished
Cited by18 cases

This text of 208 P. 1025 (Weil v. Defenbach) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weil v. Defenbach, 208 P. 1025, 36 Idaho 37, 1922 Ida. LEXIS 128 (Idaho 1922).

Opinion

RICE, C. J.

This cause was considered by this court on a former appeal. (Weil v. Defenbach, 31 Ida. 258, 170 Pac. 103.) Reference is made to the former opinion for a statement of the facts. In addition to the facts therein set forth the record shows that in November, 1908, the Traders’ State Bank of Sandpoint transferred the principal part of its assets to the Citizens’ State Bank of the same place, in consideration of which the latter bank agreed to pay the depositors and obligations of the former, and also issued its capital stock to the amount of $14,000 directly to the stockholders of the Traders’ State Bank in proportion to their interest therein. This was true with the exception of appellant Defenbach, who assigned to one Brewer his interest in the Citizens’ State Bánk. The effect of this assignment will be considered later in this opinion. After the cause was remanded upon the former appeal it was tried and judgment entered in favor of the receiver and against the appellants. This appeal is from the judgment.

Respondent contends that every fact which existed and every proposition of law which should have been submitted upon the former appeal is now settled and will not again be heard by this court. In the cases of Hall v. Blackman, 9 Ida. 555, 75 Pac. 608, Palmer v. Utah etc. Ry. Co., 2 Ida. 382, 16 Pac. 553, and Lindsay v. People, 1 Ida. 438, this court recognized the doctrine of the law of the ease, but this doctrine should not be extended beyond the points of law actually decided upon the former appeal, and those necessarily involved in the decision actually made. (2 R. C. L. 226-228.)

[43]*43On the former appeal the points actually decided which may be considered the law of the case on this appeal were, first, that the judgment of nonsuit as to respondent’s first cause of action was properly entered. That question was finally adjudicated. It was next decided that the allegations contained in the second cause of action stated facts sufficient to constitute a cause of action, and that if the action be regarded as one on behalf of a creditor the statute of limitations could not begin to run against the creditor until he had notice that the assets of the corporation were not sufficient to satisfy his debts, but if the action were one by the receiver on behalf of the corporation, and not on behalf of its creditors, the statute would not begin to run until the withdrawal of the assets of the corporation, and that in neither event was the action barred under any of the sections of the statute relied upon. It should be noticed that it is stated in the former opinion that the division of the assets occurred on October 10, 1910. We will proceed, therefore, to examine the specifications of error in the light of the former decision in this ease as above outlined.

It is first contended that the judgment in the case of Churchill v. Traders’ State Bank was void, in that the summons and complaint were not served on the Traders’ State Bank at any time or at all. This contention is based upon the fact that Mr. Defenbach, who was named in the sheriff’s return as the person upon whom the summons was served and as president of the Traders’ State Bank, denied upon the witness-stand that he- was served with summons at any time or place. This is a collateral attack upon the judgment. A void judgment is subject to collateral attack, and a judgment entered without jurisdiction of the person is void. It- is generally held, however, that where a judgment of a court of 'general jurisdiction contains recitals as to the jurisdictional facts, these are deemed to import absolute verity unless contradicted by other portions of the record. There is a conflict in the authorities as to the evidence which may be received to show want of jurisdiction upon a collateral attack. (See 15 R. C. L., p. 893, [44]*44see. 373.) In that section it is stated: “So where the judgment contains recitals as to the jurisdictional facts these are deemed to import absolute verity unless contradicted by other portions of the record. Consequently such a judgment cannot be collaterally attacked in courts of the same state by showing facts aliunde the record, although such facts might be sufficient to impeach the judgment in a direct proceeding against it. The validity of a judgment when collaterally attacked must be tried by an inspection of the judgment-roll alone, and no other or further evidence on the subject is admissible, not even evidence that no notice had been given.”

For the contrary view, see Ferguson v. Crawford, 70 N. Y. 253, 26 Am. Rep. 589.

This court has adopted the view expressed in the foregoing quotation from R. C. L. In the case of O’Neill v. Potvin, 13 Ida. 721, 93 Pac. 20, the court said: “We therefore conclude that this action is a collateral attack on the judgment of a court of general jurisdiction. That being true, the fact that the judgment is void must appear upon the face of the record; that the record consists of the judgment-roll, and in the Malanfant case, the defendant was a nonresident of the state; service of summons was had by publication ; that the judgment-roll in that case consisted of summons with the affidavit or proof of service and the complaint with a memorandum indorsed thereon that the default of the defendant in not answering was entered, and a copy of the judgment; and on the face of that roll, it does appear that the court had jurisdiction.” In any event, the matter is set at rest in this case by the finding of the court that the summons was duly issued, and that a copy of the same and the complaint were duly and regularly served upon said corporation, by delivering the same to and leaving a copy with Byron S. Defenbach, president of the Traders’ State Bank, in Bonner county, Idaho, by the sheriff of that county, and that due return was made by the sheriff in said action upon due and personal service. The sheriff’s return being Prima facie evidence of the fact, the evidence was [45]*45sufficient to support the finding of the trial court. (C. S., sec. 3598.)

It is next contended that even admitting that personal service was made upon Byron S. Defenbach it was not service upon the corporation, for the reason that Defenbach was not at the time a stockholder and therefore could not act as director or president of the corporation. Mr. Defen bach testified that he sold and transferred his stock in the Traders’ State Bank in the year 1908 to one Brewer. He testified that Brewer was to take the stock in the Citizens’ State Bank, but he retained his proportional interest in the assets of that bank remaining after the deal with the Citizens’ State Bank was made. The evidence further showed that thereafter, in 1910, Mr. Defenbach received his proportion of the remaining assets of the Traders’ State Bank, his proportion being determined by the amount of stock he still held in that institution. Under this state of the evidence, no conclusion can be reached except that Mr. Defenbach remained a stockholder of the Traders’ State Bank, and transferred to Brewer only his right to receive the shares of the stock in the Citizens’ State Bank which were issued at the time that bank took over a portion of the assets of the Traders’ State Bank. The last election of directors and officers of the Traders’ State Bank occurred in March, 1908. At that time Mr. Defenbach was elected president. He never resigned or was removed and the Traders’ State Bank was never dissolved by legal proceedings. Neither was it shown that it had forfeited its charter.

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Cite This Page — Counsel Stack

Bluebook (online)
208 P. 1025, 36 Idaho 37, 1922 Ida. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weil-v-defenbach-idaho-1922.