Scheuer v. R. J. Schwab & Sons Co.
Scheuer v. R. J. Schwab & Sons Co.
Opinion of the Court
(1) Let us first consider the appeal from the order of the circuit court denying appellant’s application to be made a party defendant in the principal action of Joseph F. Scheuer and Harry Wagen against the Regal Oil-Gas Burner Company. The appellant contends that the interest it acquired in the fund in the bank belonging to the Regal Oil-Gas Burner Company under its garnishment proceedings gives it an interest in the subject matter of the controversy of the principal action of Scheuer and Wagen against the Regal Oil-Gas Burner Company and that it cannot, under the facts and circumstances shown, protect such interest to the impounded funds in the possession of the bank unless it be made a party defendant to this principal action and be accorded the right to litigate any defense the Regal Company may have to the cause of action set forth in the plaintiffs’ complaint. This claim of appellant is urged on the grounds that the Regal Company threatens to default in its appearance upon the trial of that case, and thus permit plaintiffs to obtain judgment without a trial upon the merits of the case and thereby enable the plaintiffs to prevent appellant from securing payment of its judgment:
The facts and circumstances of the instant case present a situation which discloses that, unless appellant is made a party to the principal action and is accorded the right to present the defenses of the Regal Company to plaintiffs’ cause of action, it may be deprived of its right to the impounded fund in the possession of the bank. In contemplation of the provisions of sec. 2610 appellant has “such an interest in the subject matter of the controversy” which requires that it be made a party to the action for the “due protection” of its rights.
(2) The circuit court upon application of the appellant, Schwab & Sons Company, by order made it a party defendant to the garnishment action wherein Scheuer and Wagen are plaintiffs and the Marshall & Ilsley Bank is garnishee defendant. This was done for the purpose of enabling appellant to duly protect its interests as garnishee in the fund of the Regal Company in the possession of the bank. The court, however, denied appellant’s application as such intervener to dismiss the garnishment action of
The circuit court’s refusal to dismiss the garnishment action is based on the grounds that the complaint in the principal action states a cause of action for recovery on implied contract, and that the affidavit on which the garnishment rests, stating that the principal action is one “to recover damages founded on express contract,” can be amended and will be deemed to have been amended as charging that the principal action is one to recover damages founded on “implied” contract.
The complaint in the principal action charges in effect that plaintiffs in September, 1917, made a contract with defendant Regal Oil-Gas Burner Company, and, in consideration of paying such company $2,100, got the right to sell defendant’s oil burners for stoves and furnaces within certain territory in this state; that the consideration was as follows: $1,650 in cash at the time the contract was executed, and $450 by note; that plaintiffs were induced to enter into this contract through false and fraudulent representations of the defendant respecting the fuel consumption of the oil burners, and that defendant falsely and fraudulently ' represented that the oil fuel to be used in such burners, would cost much less than coal fuel burners under like circumstances and conditions; that in fact the oil fuel consumed by such burners is much more costly than coal fuel, and that in fact these oil burners are of no real value whatsoever; that plaintiffs upon the discovery of such fraud
True, the cause of action arises out of a tort, but plaintiffs may waive the tort and sue on implied contract. Upon •the facts alleged the complaint must be held to state an action at law for damages. The recovery demanded also ' shows that plaintiffs are not seeking full recovery of their entire loss, but the amount defendant gained by payment plaintiffs made to it under the contracts specified in the complaint. These features characterize the complaint sufficiently to show that the recovery is sought on implied contract. Norden v. Jones, 33 Wis. 600; Western Assur. Co.
We are of the opinion that the circuit court correctly held that plaintiffs were entitled to bring a garnishment action, and that under the liberal rule in favor of permitting amendments in proceedings and pleádings they are entitled to amend the affidavit for garnishment from “express” to “implied” contract.
It is therefore held that the part of the order of the circuit court refusing to dismiss the garnishment action of Joseph F. Scheuer and Harry Wagen against the Marshall & Ilsley Bank must be affirmed, and that the order of the circuit court refusing to make appellant a party defendant in the principal action of Joseph F. Scheuer and Harry Wagen against the Regal Oil-Gas Burner Company must be reversed, with direction to grant appellant’s application to be made a party defendant in such action.
By the Court. — It is so ordered.
Reference
- Full Case Name
- Scheuer and another v. R. J. Schwab & Sons Company (Intervening defendant), (Marshall & Ilsley Bank, Garnishee defendant) Scheuer and another v. R. J. Schwab & Sons Company (Intervening defendant)
- Status
- Published