Nelson v. McMillan
Nelson v. McMillan
Opinion of the Court
Plaintiff’s action is grounded upon a judgment rendered in his favor and against the defendants in the United States district court for the district of Minnesota. A duly certified transcript is attached to the petition, showing the judgment to have been entered on February 23, 1914, for $5,170.93 damages and $214.25 costs, which indebtedness is
The answer, which is somewhat voluminous, may be briefly stated as follows: (1) They deny the judgment sued upon, and allege that it was entered without jurisdiction. (2) By way of counterclaim, they charge that plaintiff is one of a wrongful combination of persons who have conspired to defame the character of defendants for integrity in business as breeders of Percheron horses; and that, in pursuance of such conspiracy he, with others, has maliciously circulated false statements and defamatory charges derogatory to defendants and their business, by reason of which defendants have suffered great damage. (3) They further charge that, after litigation was begun, and before said judgment was rendered, the parties entered into an agreement of settlement of their controversy, by the terms of which, among other things, the plaintiff promised and agreed to sign and deliver to defendants, written applications for the registry of four certain weanling colts, to enable defendants to secure their registration by the Percheron Society of America, and thereby promote the sale of said animals; but, upon demand therefor, plaintiff neglected and refused to sign or deliver the applications as promised, and entered into a conspiracy with others to prevent such registration, whereby defendants claim to have been further damaged in another large sum.
A jury was impaneled for the trial of the issues joined, and both parties, having offered their evidence, rested. The court thereupon sustained plaintiff’s motion directing a verdict in his favor for the amount of the judgment sued upon, and from this ruling and from the judgment upon the directed verdict, the defendants appeal.
I. Much of the evidence is quite irrelevant to the issues •here joined, being seemingly directed to the merits of the original case in which the judgment referred to was obtained. It is hardly necessary to say that matters there adjudicated, or which ought to have been there adjudicated, cannot be relitigated here. If that court had jurisdiction of the par
The material facts of record seem to be as follows: Plaintiff brought suit against defendants in the district court of Yellowstone County, Minnesota. Defendants appeared and caused the removal of the same to the United States district court for that state, where it was finally placed upon the calendar for trial at the December, 1913, term of that court. At such term of court, and before the case had been reached for trial, a stipulation was filed therein by counsel for the respective parties, as follows:
“In the District Court of the United States District of Minnesota.
“Martin S. Nelson, Plaintiff, v. H. Gr. McMillan et ah, Defendants. — Stipulation.
“It is hereby agreed and stipulated by and between the parties in the above entitled cause, that the same is to be settled upon the following and conditions, to wit: The defendants are to purchase from the plaintiff the 12 horses, nine of which are set out and described in the plaintiff’s amended complaint, the said horses being a certain registered Pereheron stallion, named Roderigo, Reg. No. 75829; a certain Pereheron mare, Myrtle, Reg. No. 50820; three colts of a certain registered Pereheron mare named Phyllis, Reg. No. 50819, the said colts being named T'ekla, Everglade, and Chester; three colts of the registered mare Myrtle, mentioned above, one being a black suckling colt, the others being named Custer and Corkpine; two colts from a certain registered mare named Martha, one of said colts being a suckling colt, the other, a colt named Hardpine; one black suckling colt from the mare colt Tekla, hereinbefore described, and*566 one suckling colt from the colt Everglade, hereinbefore described.
“The plaintiff is to care for the said animals until the 5th day of January, 1914, unless the same shall be before that time taken by the defendants, or some assign of the defendants, and the defendants are to take the said horses either by themselves or by some party to whom they shall assign their rights under this stipulation on or before the 5th day of January, 1914, at Canby, Minnesota, and pay to the plaintiff at the time of taking said animals the sum of $7,760; the said horses while being kept by the plaintiff are kept at the risk of the defendants.
“It is further understood and agreed that the said horses when delivered to the defendants shall be accompanied with, such certificates of registration in the Percheron Society of America as the plaintiff now has.
“It is further stipulated that in the event the defendants shall not tender to the plaintiff performance of their part of this stipulation on or before the 5th day of January, 1914, then, in that event, and upon the filing of this stipulation and an affidavit of the plaintiff’s attorney, O. A. Lende, of the nonperformance by the defendants of their part of this stipulation, then the court in which this cause is pending shall enter judgment against the defendants in the sum of $7,760 and costs, and the plaintiff may cause execution to-issue on said judgment for sale of said horses and have, general execution for any balance that may be due on said judgment after the sale of said horses.
“Dated December 2, 1913.
“Johnson & Lende, Attorneys for Plaintiff.
“J. M. Parsons, Attorney for Defendants.”
This stipulation having been filed, the court made an entry dropping the case from the calendar. The order is not set out in the abstract, and there is no showing of the form or terms thereof, except as here stated. Thereafter, and dur
“In the District Court of the United States District of Minnesota.
“Martin S. Nelson, Plaintiff, v. H. G. McMillan et al., Defendants.
“It is hereby stipulated by and between the parties in the above entitled action that judgment is not to be entered up against the defendant pursuant to the stipulation of December 2, 1913, until February 20, 1914.
“It is further stipulated that, in consideration of turning over to the defendants the twelve head of horses involved in this action and embraced in the stipulation of" December 2, 1913, on January that the defendants will conduct a public sale of said horses in the city of Canby, Minnesota, on the 24th day of January, 1914, and that said sale is to be cried by either a local or other auctioneer, or both, and that said sale is to be clerked by the First National Bank of Canby, who is hereby authorized and directed to turn the net proceeds of said sale over to the plaintiff or his attorneys to be applied as part payment on the sum of $7,760, the amount set forth in the stipulation of December 2, 1913. That the balance then remaining due and owing shall be paid by the defendants on or before February 20, 1914.
“It is further stipulated that the plaintiff as soon as he receives blank applications will sign said application for the registration of the four weanlings involved in this auction not heretofore registered.
“Dated this 2d day of January, 1914.
“Johnson & Lende,
“Attys. for Plaintiff, Canby, Minn.
“J. B. McMillan,
‘ ‘ One of the Defendants.
“¡8. D. Riniker,
“Attorney for Defendants.’’
The attack now made upon the jurisdiction of the court to enter such judgment is based upon the proposition that, notwithstanding the stipulations above set out, the court was not authorized to enter judgment without further notice to defendants for the following reasons: (1) That the time fixed in the second stipulation expired on February 21, 1914; but it appears that, on the date named, the cause had not only been stricken from the calendar, but the court was not in session, having, by order duly entered, adjourned from February 18th to Monday, February 23, 1914. We are also cited to the Federal statute which provides that proceedings in the Federal district court shall conform “as near as may be” to the practice and mode of proceeding in like cases in the state court. Bevised Statutes of the United States, Sec. 914. To show the practice in the state court, we are then cited to the statutes of the state of Minnesota, as follows: Gen. Stat. Minnesota, Sec. 7742, by which, after appearance entered for defendants, counsel is entitled to notice of all subsequent proceedings; Sec. 7793, by which notice of trial is required; Sec. 7749, providing for notices of motions; and See. 7745, providing for service of notices by mail. It may also be added that, by Sec. 7817 of the same statutes, the
The essence of the argument is: (1) That the case, having been stricken from the calendar, could not be restored except upon notice; (2) that the first stipulation was superseded by the second, and, as the second stipulation contains no provision concerning an entry of judgment, none can properly be entered, except upon notice; and (3) that there was no court in session on February 20, 1914, and jurisdiction to further act in the matter was thereby lost.
II. Was there any evidence tending to sustain defendant’s counterclaim for damages because of a wrongful conspiracy to defame and injure them and the business in which they were engaged?
Had this case gone to the jury upon a showing as meager as is made in the testimony of this witness, and the jury had therefrom found for the defendants upon their counterclaim, the verdict could not have been permitted to stand. There was no other evidence which even inferentially tended to connect the plaintiff with the alleged conspiracy.
“The plaintiff as soon as he receives blank applications*575 will sign said applications for the registration of the four weanlings involved in this action not heretofore registered.”
There was evidence offered to the effect that plaintiff did not sign the applications and that defendants prepared the blanks and sent them to plaintiff’s counsel, who returned them unsigned. It appears, however, by the same witness that defendants themselves made the necessary applications, and, after some delay, the colts were in fact properly registered. Turning to the counterclaim as pleaded, we find no allegation that plaintiff’s failure to sign the applications for registration had any effect to depreciate the value- of said' -colts or that defendants were thereby compelled to sell them for any less price than they would otherwise have commanded. The essence of the charge there made is that,- when the sale took place, the defendants “were compelled publicly to explain to a large crowd of horse buyers and breeders attending the sale from various parts of the country that said colts were not recorded, and that said explanation necessarily conveyed the impression that there was some difficulty and trouble concerning the recording of said colts.” All this was pleaded by way of introduction to the further allegation and claim that plaintiff’s failure to sign the applications was in pursuance of a conspiracy between him and other persons named, to convey and give publicity to the belief that defendants were attempting to procure the fraudulent registration of the colts, and thereby injure defendants’ reputation and standing as horse breeders; and that, in further pursuance of such wrongful purpose, some of the persons with whom plaintiff is alleged to have conspired wrote letters to the officers of the Percheron Society, making false charges to prevent the registration of the animals and to defame the defendants. Upon the subject of damages, the allegation is that:
"The refusal of the plaintiff to sign the applications for the weanling colts and the writing of said letters were all ■done in furtherance of the conspiracy referred to in .Count 2*576 of this answer and counterclaim for the purpose of injuring the good name and reputation of these defendants and for the purpose of injuring, breaking down and destroying the business and property of these defendants, and that by-reason thereof these defendants have been damaged in the sum of $15,000.”
If is very clear from this pleading that defendants are not here demanding a recovery of damages for any loss upon the four colts because of the failure to sign the applications, but for ‘ ‘ injury to good name and reputation; ’ ’ and that the matter of the applications is alleged, not as in itself affording a cause of action, but as one of the incidents in the conspiracy by which injury had been done. to their reputation and standing as breeders of Pereheron horses.
The only effort to prove the alleged damages Was made by calling one of the defendants to the stand and then addressing the court as follows:
7. Appeal and error : review: failure to establish cause of action; rejection of evidence of damages. “Now, if your honor please, we offer to prove by this witness the amount of damages sustained under Counts 1, 2, 3, 4, 5 and 6 of the defendants’ amended and substituted answer and counterclaim.”
Then, amending the offer, counsel further proposed to the court to “prove by this witness the amount of damages sustained under each count, severally and collectively, as alleged in the amended and substituted answer and counterclaim.” To this offer it was objected that the pleading did not show facts sufficient to constitute a defense or counterclaim, and that defendants had wholly failed to connect plaintiff with the alleged conspiracy. The objection was sustained, and we think correctly; for, as we have already said, there was a distinct failure to prove facts tending to show that plaintiff entered into the conspiracy, if there was one, to injure the defendants.
The record discloses no prejudicial error, and the judgment below is — Affirmed.
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