96 Iowa 592 | Iowa | 1896
The pleadings in this case are very voluminous, covering more than one hundred and sixty closely printed pages of the abstract. We cannot do more than set out the substance, of the allegation which we deem material to a proper determination of the case, and must, of necessity, avoid even a reference to many matters which are pleaded and argued by the counsel, for the reason that they would obscure the real points at issue as we understand them. The plaintiff claims: 'That it is a mutual benefit association doing a life insurance business in this state under the name in which it,brings this suit, under authority from the auditor of state. That it was originally incorporated under its present name in Scott county, in June, 1875; afterward® reincorporated in Black-hawk county in February, 1884, and received its certificate to do- business from the auditor of state in July, 1893. That it does business through subordinate lodges organized in different parts of the state, and now consists of two hundred and seventeen lodges,
The plaintiff’s motion was to strike out certain matters stated in the answer, because they were legal conclusions, and the demurrer was for the reason that the matters stated in answer constituted no defense to plaintiff’s cause of action; second, because it appears from the answer that plaintiff is entitled to- the exclusive use of the name in question; and that defendants are using the same illegally; third-, because the-answer shows that defendants are carrying on life insurance on the assessment plan, under plaintiff’s name, in violation of its corporate rights. Plaintiff demurred to the counts or divisions of the answer, pleading the statute of limitations and laches on the part of the plaintiff. The lower court sustained plaintiff’s motion and demurrer, and the appeal is from these rulings.
In the case of Ottoman Cahvey Co. v. Dane, supra, defendant Dane, had in 1875 organized1 a corporation under the laws of the state of Michigan known as the Ottoman Oahvey Company, and had carried on business as such corporation in the city of Chicago, Ill., from and after that date. On September 24, 1876, the plaintiff organized a corporation under the same name under the laws of the state of Illinois, and thereupon brought suit against the Michigan corporation to restrain it from doing business under the name by which it was organized, averring that the Michigan corporation had been dissolved by the supreme court of Michigan, and no longer had authority to act in the capacity of an incorporated company. The supreme court of Illinois held that, though the defendants had no right to act in their capacity as an incorporated, company, yet they had a clear right to continue in business under the name Ottoman Cahvey Company, either as partners or otherwise; and that the plaintiff corporation had no right to assume a name under which
Further claim is made that plaintiff has exclusive right to its name under the decisions of this court in the cases referred to in plaintiff’s petition. It is sufficient answer to this to say that no such question was made in either of these cases. Moreover, the corporation was not a party to. either of these suits, and if there had been a determination of this question, it would not be binding upon the parties to this litigation. Newby v. Railway Co., 1 Deady, 610 (Fed. Cas. No. 10,144); People v. Murray, 73 N. Y. 535; Geekie v. Kirby Carpenter Co., 196 U. S. 386 (1 Sup. Ct. Rep. 315); Smith v. State, 21 Ark. 294. We think the defendants’ answer pleads facts which clearly show that plaintiff was not entitled to the exclusive right to the use of the name, and that the demurrer to the second count of the defendant’s answer should have been overruled.
Plaintiff’s cause of action to enjoin the use of the name accrued at the time it was legally incorporated in the year 1884. It was not then required to have a certificate from the auditor of state authorizing it to do business, for the Acts of the Twenty-first General Assembly did not take effect until the year 1886. It could have obtained its certificate from the auditor, if it were necessary to do so to authorize it to bring suit, in the year 1886, and thereupon could have immediately commenced its suit against the defendants. It could not, by delay in procuring its certificate, prolong the operation of the statute. Baker v. Johnson County, 33 Iowa, 151; Hintrager v. Traut, 69 Iowa, 746 (27 N. W. Rep. 807).
The fact that damage done to plaintiff is continuing — which must be conceded — is not controlling, for this is not an action to recover damages at law, but a suit in equity to enjoin and restrain the defendants from the use of a name. The cause fully accrued when the defendant proceeded with its business in violation of the plaintiff’s rights. We have held in law actions for damages that when the act of the defendtnt was complete before the period of limitation, and the result only was within the statute, a suit for damages was barred. Powers v. City of Council Bluffs, 45 Iowa, 652. See, also, Baldwin v. Gaslight Co., 57 Iowa, 51
Our conclusions are that under the allegations of the answer — First, plaintiff had no right to the exclusive use of the name; second, that, if it had such right, it has lost it by acquiescence and laches; third, that if i% be conceded that defendant is doing business, without authority, plaintiff is in no position to complain. For these reasons the demurrer to the second and third count of the defendant’s answer should have been overruled. — Reversed.