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Cochran v. Lovelace
209 N.W.2d 130
Iowa
1973
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*1 and that it with invalid releases is incon- did not sustain her burden proving that legislature ceivable intended invalid re- the release is invalid. I therefore concur parent, be valid. if a leases should Hence in reversal of the judgment.

acting promptness, proves with reasonable

by preponderance that a evidence McCORMICK, J., joins special con- understanding^ release was or volun- not currence. tarily given, the release should be set aside. The evidence should be scrutinized careful- however,

ly, attempt as an invalidate may

release a change result from of mind parent invalidity

of a rather than

release, his and the child and custodians

also have interests to be considered. prob- But 238 does deal with the COCHRAN, Donald D. Administrator of the Shirley Cochran, deceased, Larry revocability estate of lem of of releases which arc Cochran, surviving spouse and as father challenged. legislature themselves and next friend of Shae Allen Cochran too, subject silent on that could have been Hayword Cochran, Appellees, and Lee in which event court would have to say subsequently whether valid releases are and, so, grounds. if Ralph revocable on what al., Appellant. C. LOVELACEet itself, however, The legislature chose No. 55354. problem, provided deal with the that a Supreme Court of Iowa. child has been released can be re- upon prоof neglected. covered that he is July 3, 1973.

Section 238.29states:

Children so surrendered not be parents except

recovered through upon proof

decree of court based neglected by par-

the child is its foster

ent, custodian, guardian, neglect relating

defined the statute to ne-

glected children.

In this section the balanced all interests of the individuals involved. original

When surrender the child parents unchallenged,

itself can by “proof

recover the child that the child neglected.” I think we are bound

this statute as written. us,

II. In the case before Debra Statler

claims that the release itself was invalid inception

from its because she was mistak- en as give did not it un- import —she

derstandingly. promptly, and She acted proved preponder-

she has her claim a

ance of the set evidence should the re- Upon carefully

lease scrutinizing aside. however, ‍​​​‌‌​‌‌​​‌​​‌​​​​​‌‌‌​‌‌​‌​​‌‌​​‌‌​​‌‌​​​​‌​‌‌​‍evidence, f conclude that she *2 Hyland,

Thomas Moines, P. Des for Rаlph (defendant Edward and Jackson appealing). RAWLINGS, Justice.

Plaintiffs instituted dram shop action 1966, chapter under The Code Liquor Control Act) defendants, li- quor suppliers surety and on their bond. From trial court overruling order defend- surety’s ant motion to dismiss as to it this appeal permissibly taken. We reverse. To the plaintiffs, extent here relevant petition, six their division seek redress from defendants as licensees and permittees Also (licensees). party made a defendant is Merchants Bonding Mutual Company (Merchants), on the statu- tory posted by said licensees. Merchants, Defendant in its motion to dismiss, appears certainty asserts to a plaintiff has failed to state a claim on granted which any any relief proved which could he statement facts support brought pursuant of his actiоn provisions 1966, chapter of The 123as amended. plaintiffs

In resistance to said motion instantly contend Code an 613.1 affords avenue of relief under materia rule. inceptionally

I. It must be conceded this law, recognized action not common statutory authority foundationed on Klemesrud, N. alone. See Williams 1972); W.2d Wendelin Russell, Gerry Rinden, Klockau, McCarthy, M. citations; Am.Jur.2d, Rinden, Schubert, Lousberg, Ellison & In- Intoxicаting Liquors, Ill., Golden, Island, Roy A. Rock toxicating Liquors 430-432. Wasker, Sullivan, Golden, §§ Wheatcraft & Ward, Moines, Ralph Lovelace Des for C. plaintiffs’ II. The accident and not (defendants and Sharon K. Davis predicated case occurred June Mutual appealing) for Merchants plain- invoked Thus Code Co., Bonding appellant. tiffs, provides: applicable and § wife, child, Skinner, Altoona, husband, parent, Skinner, “Every

Ed Irish & guardian, person or other employer who appellees. application, is resorted to property or universal but or intent; per- legislative by any intoxicated search support means of rule cannot be invoked where resulting from the intoxication or son language is clear and unam- right have a of a statute person, shall any such biguous.” action, jointly severally or shall sell or permittee censee *3 also General Electric Co. v. Southern See to intoxicating liquor give any beer or Co., 135, (5th 138 383 F.2d Construction intoxicated, person he any such while 955, 1967), Cir. cert. den. U.S. 88 S.Ct. 390 point person a any such to or serve 1049, 19 L.Ed.2d Rabon v. South all intoxicated for such where Dept., Highway Carolina 258 S.C. State actually (Emphasis damages sustained. 154, 652, 2 (1972); 654 Suther- 187 S.E.2d supplied). land, Construction, at Stаtutory 5201,n. 1 § ed., Horack, (3d 1943); Am.Jur., 529 50 “Every liquor control licensee Statutes, at responsibility 348 345. proof of financial furnish in- liability by either the existence of Assembly, If the in en General in posting policy surance acting had meant that actions as determined the com- such amount brought against such this be licensees or as mission.” easily permittees their it could Act, provided. have so it did not do. See it re This We are satisfied as Enterprises, Roberts-Walby Hartman the instant v. parties lates to whom 724, Incorporated, clear, Mich.App. 170 complete 17 N.W. brought action can be sois 292, 2d ambiguity preclude (1969). as 293-294 and free from to any judicial Iowa R. construction. See It is intended evident Hocker, 344(f) 201 (13); Civ.P. State brought such is here us be action as before N.W.2d v. Zim (Iowa 1972); McKillip 74 per- only against offending licensee or merman, 706, (Iowa 191 N.W.2d 709 says mittee. The Act what means it 1971); State ‍​​​‌‌​‌‌​​‌​​‌​​​​​‌‌‌​‌‌​‌​​‌‌​​‌‌​​‌‌​​​​‌​‌‌​‍Ex Rel. Turner Koscot In says. what it v. Kle means See Williams terplanetary, Inc., 624, 191 N.W.2d 631 mesrud, 197N.W.2d 616. (Iowa Davenport 1971); Water Co. Com’n, Iowa State Commerce Furthermore, 190 N.W.2d plaintiffs neither contend (Iowa 1971); 594-595 Estate plausibly urge that Mer- they nor could Beeck, Brauch v. 134 permittee under chants is a licensee or Valeu, 1970); State v. Code 867,869-870, 134 N.W.2d (1965). heavily plaintiffs lean III. Sinсe Michaelson, 111, 219 Curtis v. Iowa aforesaid, however, As plaintiffs support posi- of their (1928), N.W. in urge 123.95must be construed with other tion, appropriate to here distin- find materia, pari statutes in citing By 613.1. guish that case. argument plaintiffs merely seek to in specific voke a statutory rule of construc initially brought in tort Curtis which, tion above, as inapplica denoted damages Michaelson occasioned for clear, ble when the complete statute is a result of struck defendant ambiguity. free from operated public Michaelson motor bus. had, however, disposing left the state after concisely As in stated Statutes property process his so that service 366b,at 813: jurisdic- could not be had him this general “The rule that the to meaning petition tion. The then amended was statute be determined join from its insurer under Michaelson’s construction in 5105-a26, pro- connection with other The Code statutes vided, materia not one of “insurance bond shall bind Dist. of compensation Lone Tree Com. School & obligors to make thereunder Johnson ** * Louisa, resulting injuries persons N.W.2d light foregoing, Knott v. Pe operation of motor carrier.” In from the such terson, ground 101 N.W. 173 Defendant insurer demurred on the the result in judgment it until deemed in conflict with liability accrued is, extent, hereby granted stantly its assured. Trial reached was appeal court sustained the demurrer overruled. court, reversing, This held

followed. The motion filed to dismiss defendant peculiar that under these circumstances the Bonding Company Merchants Mutual party plaintiff directly could sue been should have sustained. the tort feasor’s carrier. insurance Reversed. persuasive find Curtis neither We nor *4 controlling on the issue now before In us. place, the first Curtis dealt with The Code MOORE, MASON, J., C. Le- 1927, 5105-a26, imple a statute which REES, JJ., GRAND and concur.

mented the Distinguishably, common law. bar, in the case at as aforesaid deal REYNOLDSON, HAR- UHLENHOPP, with a creating statute cause of action McCORMICK, dissent. JJ., RIS Furthermore, unknown common law. to the in holding Curtis was limited to an ab REYNOLDSON, (dissenting). Justice situation, sconding instantly tort feasor not holding recog involved. That was later Majority Code, reasons The by legislative nized subse enactment1 and 1966, grants injured person the a cause of quently judicial accorded confirmation.2 action against permittee and, the licensee Finally on this Curtis with a dealt subject because such action is in derogation of general statute so invite ju in to terms law, common indeрendent there can be no construction, instantly precluded dicial for or co-extensive against cause of action reasons heretofore stated. censee’s concept bondsman. Such of strict construction of in alleged deroga- statutes aforesaid, plaintiffs’ As IV. tion of common law of course violates 4.-§ against statutorily is founda- Merchants 2, The fallacy But thе Code. in that ra- accordingly tioned and this court re- tionale is pinpointed by further query: the otherwise, stricted. Stated Merchants then injured where else the in code the a party made defendant the bare alle- party given statutory recourse the gation posted surety a bond bondsman? pursuant on behalf to of licensee Code chapter 123, the conditions that bond necessаry The implication majori- left by being express unknown. therefore We no ty’s opinion right is that the of action plaintiff sought view as to the result had statutory bondsman, the predicated upon redress Merchants from code, found in the be must fixed correspondent terms the bond and obli- terms of the bond. Assuming but not con- gations, any, part on the of Merchants ceding can thus control its own plaintiffs. to liability, majority necessarily hy- must pothesizing bond terms which are not be- foregoing Mindful we now V. of the fore us. hold, plaintiffs instantly could not be ac- party pleaded, I. Here the injured with- any sought

corded relief Mer- terms, jre specifying out there awas bond. chants. In 104(b); See Iowa R.Civ.P. Forwarding Forty-Third 1. v. of the Great Lakes Session General Schulte (embodied Corp., Assembly, 1012, 1§ ch. in The 291 N.W. 158 325.26). (1940). Code bonding company The admitted legislaturе’s chap- frustrates design in moving petition. to dismiss the Sitzler ter The Code. Peck, 162 449 (Iowa 1968). N.W.2d to chapter Central the construction of A motion to dismiss is sustainable public policy 123 should be the declaration appears where it a certainty that .a found 123.1: plaintiff any would not be entitled to relief * * * state of facts “This shall be which could be

proved police power in support of the dеemed an exercise of the claims asserted state, Boegel, protection him. Rick of the for the N.W.2d 713 * * * safety peo- The bond in the instant welfare of the case, evidence, placed ple state, provisions all its when secured and may prove beyond par- ‍​​​‌‌​‌‌​​‌​​‌​​​​​‌‌‌​‌‌​‌​​‌‌​​‌‌​​‌‌​​​​‌​‌‌​‍liberally dispute construed for the ac- ** ty original right complishment purpose It has of action. of that might well contain the same as the terms legislative concern for welfare of Peterson, bond in Knott persons incurring through injury : N.W. expressed traffic was section, pay

“As the bond was conditioned to 1966. In this which first damages resulting all from li- provided right injured persons the sale of quors by Peterson, pay any obviously and not damages, *5 judgment might be thought payment which rendered those insuring was of him, against and his and Peterson damаges: jointly severally were and liable thereun- “Every liquor control licensee der, necessity making there was no proof responsibility furnish of financial party, judgment Peterson a nor for a liability in- either the existence aof against precedent him a condition to a as policy posting surance or bond in right fidelity of action the such the amount determined com- guarantee company. This is fundamen- mission.” Code, tal doctrine. § [now § The 1973].” legisla- the apparent in 123.95 It is not § of the interests ture concerned with was summarily Knott is ex- overruled without compa- bonding censees, or insurance planation by majority. thoughtful A few addi- mandates majority’s result nies. Yet surely appropriate have been words would damaged litigation for a tional demise the of what we once consid- insolvent, and where principal is where the a ered “fundamental doctrine.” in- holding (after suit he absconds before bonding company makes no issue Michaelson, Iowa v. applicable Curtis concerning provisions the unknown of recovery at no all. 49), 219 N.W. petition. bond identified in the The lan- guage of the the sole statute constituted construing 123.95 we should When § ground of its motion to dismiss: purpose and thе consider the to be served sought evil to be remedied. State Statute, by terms, “That said does Inc., Guardsmark, 190 N.W.2d 397 provide right a of action a 1971); Chicago Ry. Co. & North Western bonding company, as under the terms of City Osage, of statute, permitted recovery realistic, It is more in view of ” permittees.’ ‘licenseesor legislature’s public policy, to inter- stated premature II. Majority’s pret third-party require emasculation a bene- 123.95to § plaintiff’s exрress ficiary type policy action does more than over- or bond for the reach protection injured persons. the narrow issue raised the mo- There Majority’s unnecessarily tion. not the nothing decision before us to indicate this is precise interpretation placed Code; on the statute 2d 714 (1955); 12 Am. § by the commission, Iowa Jur.2d, 495-96; control pp. Bonds § C.J.S. power prescribe has the bond pp. Bonds 421-422. terms. Code; Section 123.17(2)(d), The III. Majority insists because 123.95 Liquor Control Commission rule 6.21(8), “says what it means and means what 1971I.D.R. 574. says” no given consideration need be But apparently majority reads into pertinent other statutes. undisclosed bond indemnifying terms apparent It is imposed liability the licensees against by way loss of reim- and, by licensees paid requiring a liability in- bursement for monies or which must bond, policy surance or on a surety. Cru- addition, paid, and in the “no-action” cial proper parties to the issue defend- provision commonly found automobile question ant is the surety’s whether the lia- policies. approach insurance This denies bility secondary concurrently or arises rights persons primary entitled to with that of principal. protection under 123.95 and violates rule, fundamentаl which must been have Majority’s application constraint on legislature, surety’s known to the that the materia rule has support in the simultaneously accrues with that Applicable cases. situation is principal. Am.Jur., Suretyship § our rule statutes relating to the same 183, p. 1023, 188, p. subject closely matter or to subjects allied Principal Surety p. 700. It also construed, must be considered and exam- apрearing violates our rule that facts not ined together in light of their common ju- pleading, excepting in a those which purposes intent, produce so taken, ig- dicial notice must be must system body harmonious legislation. ruling to dismiss. nored on motion Company Wonder Life v. Liddy, N. Compa- Ke-Wash Co. Stauffer Chemical *6 25, (Iowa, April W.2d 1973); 27 filed Chi- ny, 177 5 1970). N.W.2d cago Ry. North City & Western Co. v. of Osage, supra; Northwestern Bell Tel. Co. “liability” Even of insur- type under the Hawkeye Co., State Tel. statute, liability of ance intended 771 by any If fair rea- the licensee and insurer arise con- should prior sonable construction later stat- currently : reconciled, utes be can both stand. should policies “Under some which di- insure Estate, Klug’s 1128, In re 251 Iowa 104 N. rectly liability, liability insurer’s (1960). W.2d 600 immediately accrues on the occurrence The question proper of joinder of de- the lia- injury or event on which the of in type fendants is specifically case bility depends, depend on and does not prior in answered two other enactments. recovery judgment by the of a in- the There irreconcilable conflict between jured against insured.”—45 C.J.S. 123.95, Code, 3, 1966, The and rule Rules § 930,pp. Insurance 1050-1051. Procedure, of require Civil which would are here re- We concernеd with striking down the latter: quired by Long ago, judicially statute. declared if the in- law has made such an “When bond or other instrument * ** necessary, parties strument given the are deemed to the state or to of- to have the contemplation had law in when person, ficer intended for the secu- the Philip Carey was contract executed. rity generally, partic- public of the or of Maryland Casualty Cо., individuals, Co. 201 Iowa ular action brought bemay 1063, statutory 206 (1926). thereon, N.W. 808 The any person in the of in- name secured, intendment shall read be into it. Michael to be thus has sus- tended Logan, 574, v. Town 247 Iowa 73 N.W. injury consequence tained an in a 136 thereof, except presumed breach when otherwise to have known the law when provided.” 123.95, enacted what became The Code, 1966. It was necessary spe- 3, 10982, Code, Rule R.C.P. was The cifically say the party could sue 1927 when this court in Curtis v. Michael- bonding company, since that was clear son, supra, it in considered materia existing law once the injured 5105-a26, with The con- person has a cause injured party might initially cluded the sue logical censee. A construction of § liability obligor. insurance bond Ma- light can result in inter- jority distinguish Curtis, holding strains to preting that impose, statute to as a mini- logic unpersuasive its in this case. But mum, severally principal liability

there reject is no reason to the rationale of surety. and the Under (licensee) Curtis, requires 3, that rule R.C.P. simultaneous- that action clear applicable here, if we willing say are against both. ly and maintained brought (under language of that rule) the § 123.95 “bond or other instrument” in- was respect to automo- true with IV. It is tended for public the benefit of “the gener- in 1924 liability insurance this court bile ally, particular or of individuals” and not be sued in the insurer could not held the for the benefit of bonding licensees and Aplin v. with the insured. same action companies. Smith, 388, 197 N.W. 197 Iowa excep- significance

It is of no embalmed as an injured Aplin that the rule became party specifically is not general part named in of rule R.C.P. the bond. tion to the decision, suffering damage One at the articulated hands of an The rationale of bond, rule, other required give who is Iowa rea in the is found bond, son of breach may bring ac 318: N.W.

tion regardless on the bond of who is insurance is a contract “The contract of obligee ‍​​​‌‌​‌‌​​‌​​‌​​​​​‌‌‌​‌‌​‌​​‌‌​​‌‌​​‌‌​​​​‌​‌‌​‍named therein. Feil Scott v. liability arising indemnity, schmidt, Iowa 182 N.W. 382 usually out thereunder is such as arises (policeman’s bond); Lundy, Van Gorder v. indеmnity which of a contract (1885) (injunc N.W. 918 distinguishable from very nature bond); Zapf Ridenour, tion see par- liability assumed a third existing Iowa 200 N.W. (1924) (broker’s * * * ty. insurer’s was bond). early single As as 1881 a suit was protection the in- for the assumed maintained in both *7 against indemnify sured and him such to dramshop gave licensee and a re- damage might subsequently loss or pay damage any person bond any might to operation of his motor sult from the sustain reason of licensee’s sale of beer (Emphasis supplied.) bus.” Schickler, liquor. Richmond v. 10 N.W. 882. it, reasoning applied the face of such On has not without to modern conditions been Bearing further proper on the issue of analysis. Shingleton Bus devastating parties defendant is The Code: logi sey, (Fla. 1969). But a So.2d 713 persons only “Where two or more holding are cal us need in the case before * * * bоund contract or distinguish legislature stat- was intend who the ute, only, whether jointly jointly ing protect by or The Code. * * * severally, or severally say I bonding was not the licensee or may, action plaintiff’s op- thereon at the company. contemplated by The instrument tion, brought against all of or that section is not to licen- indemnify the * * them. see from damage. loss or It re- was not Section 613.1 has quired prоtection, been law of this state pro- for his but for the since is persons Code of 1851. The injured tection of traffic. Aplin and the second sentence in rule

R.C.P., application in cir- have no these WALKER, Appellant, Robert J. logical cumstances. There is reason to principal surety cannot conclude the COUNTY, Iowa, JOHNSON and the Johnson both be sued in the same action in the case County Health, Appellees. Board of before us. No. 55814. I would affirm the trial court. Supreme Court Iowa. McCORMICK, join HARRIS and JJ„ July 3, this dissent.

UHLENHOPP, (dissenting). Justice Reynold- Judge I join

I division opinion. a dissenting The accrual of

son’s obligor

cause depends upon of the bond.

bond the terms Bonds 34 C.J.S. Am.Jur.2d

Bonds at 469. 123.95 the 104a Section ap- (§ Code)

1971 Code

pears enough com- broad to authorize the the ob- accept permitting

mission

ligor judg- either (a) to be sued after (b)

ment is or obtained licensee

merely the licensee liable. Insurance here, law, analogous

law is and under that directly may proceed person

“The obtaining a insurer before or after

judgment against insured where this

permitted by policy.” the terms of the 1191b, C. Insurance ‍​​​‌‌​‌‌​​‌​​‌​​​​​‌‌‌​‌‌​‌​​‌‌​​‌‌​​‌‌​​​​‌​‌‌​‍at 109. Cf. 45 (“Where Insurance 930 at 1051

J.S. provide particular does for a policy establishing liability,

mode of insurer specified happening

liable on the con-

tingency against, irrespective insured

whether not the insured seeks to insured.”).

enforce petition

A to a vulnerable motion *8 plaintiff

dismiss if the could not re- provable state un-

cover of facts petition. Boegel,

der his Rick v. N. present (Iowa). petition

W.2d permit enough proof

broad of a liability of,

conditioned distin-

guished judgment against, from the licen-

see. trial rightly court mo- overruled the The judgment

tion. be affirmed. should

Case Details

Case Name: Cochran v. Lovelace
Court Name: Supreme Court of Iowa
Date Published: Jul 3, 1973
Citation: 209 N.W.2d 130
Docket Number: 55354
Court Abbreviation: Iowa
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