White Gaunt v. Henderson

265 S.W. 991, 218 Mo. App. 611, 1924 Mo. App. LEXIS 162
CourtMissouri Court of Appeals
DecidedNovember 10, 1924
StatusPublished

This text of 265 S.W. 991 (White Gaunt v. Henderson) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White Gaunt v. Henderson, 265 S.W. 991, 218 Mo. App. 611, 1924 Mo. App. LEXIS 162 (Mo. Ct. App. 1924).

Opinion

ARNOLD, J.

This is a suit in equity seeking to enjoin the sale of plaintiffs’ property herein levied upon by defendant Platfield, a constable, under a writ issued out of the court of defendant Forgrave, a justice of the peace of Buchanan county, Missouri. Defendant Henderson was a plaintiff in the case before the justice of the peace.

The circuit court dismissed plaintiffs’ petition herein and rendered judgment accordingly. Plaintiffs have appealed.

The petition alleges, among other things, that the defendants in the justice court case were sued as trustees and not as individuals, and that the justice erroneously entered judgment against defendants as individuals and not as trustees; that Henderson falsely and fraudulently induced the justice to issue execution against these plaintiffs individually upon the judgment so erroneously entered, and induced the constable to seize valuable property of plaintiffs herein under the said execution; that the constable is about to sell said property under the execution; that Henderson is insolvent and that the Overland Transport Company, one of the defendants in the justice court, and for which plaintiffs herein were acting as trustees, is in the hands of receivers. The petition prays that defendants be restrained from further proceeding under the alleged void judgment, or judgment erroneously entered, and that the said judgment be set aside and held for nought, as affecting plaintiffs herein individually.

While a formal petition is not required under our practice in the institution of a case in a court of a justice *613 of the peace, it seems that a formal petition was filed in the initial proceeding in this case, said petition being en-tiled “William S. Henderson, plaintiff, v. Overland Transport Co., L. A. Keck, J. M. Cahill, C. R. Orcutt, Lee E. White and B. E. Gaunt, defendants. The said petition charged that the Overland Transport Co. is an unincorporated association doing* a general automobile repairing business, hauling and delivering goods and merchandise for compensation; that L. A. Keck was its president and L. A. Keck, J. M. Cahill, C. R. Orcutt, Lee E. White and B. E. Gaunt were trustees thereof.

The petition further stated that on October 1, 1921, the said association and trustees solicited plaintiff Henderson to, and that plaintiff did, enter their employ as mechanical superintendent of their garage; that a contract was entered into whereby Henderson was to receive as salary $175 per month for his services as such superintendent; that he entered such employ on October 10, 1921, and continued therein until October 22, 1922; that the said contract provided for the purchase of stock in the concern to the amount of $500 at $10 per share. That the said Henderson, pursuant to said contract, paid cash on the purchase price of said stock to the amount of $250; and that said contract provided that at any time plaintiff should sever his connection with the association, or the defendants, he should receive from them the amount of money he had paid them on his said stock subscription.

The said petition further charges fraud and misrepresentations made to him as an inducement to make the said contract with defendants, in that defendants falsely represented that at said time said defendants had $10,000 cash as capital stock on hand; also trucks and machinery on hand, paid for, and of great value; that plaintiff believed said false statements to be true, and by reason of such inducements, which he believed to be true, he made said contract and entered the employ of defendants; that plaintiff severed his connection with defendants and demanded at their hands the return of *614 $250, the amount paid on the purchase price of the stock secured by him under the terms of the contract, and that payment was refused. The prayer for relief is as follows: • “Wherefore plaintiff p^ays judgment against the defendants in the sum of $250, and for his costs.”

The record discloses that a declaration of trust was made on August 24,1921 forming the Overland Transport Co. In this instrument certain trustees were named, provisions were made for further trustees, for the issuance of stock and for the non-liability of the trustees and shareholders personally for the debts and liabilities of the association. The plaintiffs herein, together with the original trustees, prior to the employment of Henderson, became trustees in the association. Defendants in the justice court case were served personally and not as trustees. There was a jury trial in the justice court and the case was contested. Judgment was entered in favor of plaintiff therein and against the defendants individually, and execution was issued against them.

The contract mentioned in the petition in the justice court purports to have been executed between Henderson and the Overland Transport Company, signed for the company by its president, attested by its secretary, and by Henderson for himself. It is not signed by the trustees, as such, nor by them individually.

Defendants herein urge that the declaration of trust was defective in that it did not legally create a so-called common law, or Massachusetts business trust, and that the trustees and stockholders became partners, and the defendants in the suit in the justice court were therefore liable individually as partners.

We think it is immaterial to the issues before us whether the declaration of trust actually created an association limiting the personal liability of the trustees and stockholders, or whether the result merely created a partnership among' the trustees and stockholders. For the purposes of this suit, and inasmuch as the jurisdiction of the justice is not questioned, excepting .insofar as his right to enter the judgment that he did, we may as *615 sume that the justice had jurisdiction to try the issues before him. The only question presented for our solution is as to the right of a court of equity to enjoin an execution issued on a. void judgment rendered by a justice of the peace, where there is an adequate remedy at law.

Plaintiffs herein urge that they had no adequate remedy at law because of the fact that the association was in the hands of receivers. This position we hold to be unsound. The remedy at law exists whether the asso • eiation is in the hands of receivers or not. We can consider the question only in the light of the fact that a remedy at law exists, and not because of defendants’ ability to respond if judgment be entered against them.

The question involved in this appeal was determined against the contention of plaintiffs herein in the case of Railway Co. v. Lowder, 138 Mo. 533, opinion by Burgess, J. That was a bill in equity to restrain the collection of a judgment rendered by a justice of the peace in favor of the defendant, upon the ground that the judgment is void in that it was rendered without service of process upon defendant (plaintiff in the injunction suit). There is some conflict in the adjudications of appellate courts in this State upon this question, though it always has been held that where the court, or a justice of the peace, has jurisdiction of the subject-matter, the ministerial officer is not bound to examine into the validity of the judgment, the proceedings or the process. In Railway Co. v. Lowder, supra, the court said, l. c. 536:

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Bluebook (online)
265 S.W. 991, 218 Mo. App. 611, 1924 Mo. App. LEXIS 162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-gaunt-v-henderson-moctapp-1924.