102 Kan. 144 | Kan. | 1917
The opinion of the court was delivered by
The principal question involved in this appeal is the validity of garnishment proceedings.
The Arkansas City Oil & Gas Company was organized in the early part of 1914, and leases were secured by it on about
The plaintiff contends that, although the company had suspended operations, its lease of the Mounts farm had not been forfeited, and therefore its property cannot be said to be in Mounts’ possession nor subject to garnishment in his hands. The lease contained a provision that—
“Upon failure of the lessee to drill the well or make any of the payments above provided for delay in completing a well on the date upon which the same becomes due, the lessor shall have the right to declare a forfeiture of the lease if such payment be not made within 10 days after written notice to pay the same.”
Ordinarily where a lease contains a forfeiture clause the lessee’s right cannot be terminated for a failure to comply
Some claim is made that he could not be garnished because he had not paid for his stock. The reasons on which this objection is grounded are not clearly stated, but it is unnecessary to examine them. Mounts was to pay for his stock with money and labor. He paid $200 in cash and contributed labor to the enterprise, and, although there is a dispute as to the extent and value of the labor he performed, there is an indorsement on the stub of the stock certificate book, written by the secre
The property of the oil and gas company was subject to be taken for its debts. That property was found in the actual possession of Mounts, and it is immaterial whether .his possession is to be regarded as that of a stranger or as an agent of the company. In either event there is no reason why the property in his possession should not be garnished and appropriated to the payment of its debts. (Ballston Spa Bank v. Marine Bank of Milwaukee, impleaded &c., 18 Wis. 490; The First National Bank of Davenport v. The Davenport & St. Paul R. Co., 45 Iowa, 120; Everdell and another v. The Sh. & F. du L. R. R. Co. and another, 41 Wis. 395.)
The statute under which the proceeding was had provides among other things, in effect, that if a plaintiff makes oath in writing that he has good reason to believe that any person or corporation has property of the defendant in his possession or under his control he is subject to be garnished. (Gen. Stat. 1915, § 7732.) The property belonged to the defendant. A person had it in his possession. It was liable for the debts of the laborers who obtained the judgments, and no good reason is seen why the property was not reached by the garnishment process.
Judgment affirmed.