| Iowa | Jan 11, 1906
Plaintiff, a corporation, in the early part-of the year 1899 was carrying on a woodworking plant in the city of Cedar Iiapids. Prom time to time during the year and previous thereto it had borrowed various sums of money of the defendant-, for which it executed its promissory notes. It also incurred other indebtedness, which matured early in the year 1899, and which was being pressed for collection. Defendant was also taking steps looking to the collection of his money, and it was finally agreed that the condition of affairs was such that a receiver should be appointed. . Pursuant to this arrangement one Allen, who was a stockholder and officer of the corporation, was appointed receiver in an action brought by defendant against the company. A short time thereafter it was .concluded that the receivership was an expensive affair, and defendant agreed to take over the property of the corporation, sell it to the best advantage, pay himself out of the proceeds the amount owing him and the other indebtedness, and, if anything was left, to return it to the corporation, to be divided among the stockholders in proportion to their holdings. A bill of sale was accordingly executed to the defendant under date of June 21, 1899, hut he did not take possession of the property until about July 6, 1899. At that time, and again on July Ifth, invoices were taken of the property, to which we shall hereafter refer.
Defendant proceeded to operate the business in the regular way until October of the year 1899, when he sold the
We are then brought to the accounting feature pf the case, which is at all times difficult, particularly in this court, where no oral explanation of the hooks and figures may be given. No more can be expected of us than to state in a general way the amount with which'the defendant should be charge and the amount to which he is entitled as credits. A number of counter books, invoices, cheeks, etc., were introduced in evidence and certified to this court which we have found of little help in arriving at a correct accounting. We shall adopt the simple method of trying to ascertain defendant’s receipts and charging him therewith, and of finding the amount he paid out and giving him credit therefor. In so doing we shall not extend this opinion to set out in detail all the numerous items making up the amount in controversy, but content ourselves for the most part with a statement of results. The appellee admits having received the property and business placed in his hands to an aggregate sum of $37,607.78, .and that if any part thereof is left in his hands, after allowing all proper credits, the plaintiff is entitled to recover it.
The appellant has favored us with many different theories or plans of stating the account, according to some of which the total of appellee’s debits is somewhat greater, while according to others it is dess, than the admitted sum above mentioned. Eor instance, in five different statements counsel for appellant make the aggregate of debits vary from $36,716.67 to $44,153.77, while the aggregate of credits fluctuates between $32,919.26 and $40,752.32. This is mentioned, not as indicating the incorrectness of the computations, but rather as an illustration of the inherent difficulties which cases of this class present to a court of review, which is
As to the amount for which the appellee shall have credit there is, perhaps, more room for argument; but even here the principal items claimed by him are practically undisputed in testimony. It is conceded that he should be allowed to retain the amount of the indebtedness of the corporation to himself in full, and should have credit for all proper expenditures in carrying on and managing the business from the time he took possession until the property was closed out.
These items, as claimed by the appellee, are:
(1) Paid for merchandise................ $10,899 40
(2) ” >> labor..................... 9,191 63
(3) ” expense................... 1,093 28
(4) ” freight ..................... 141 46
(5) ” insurance ................ 301 50
(6) ” discounts.................. 38 62
(7) ” mortgage on plant........... 1,926 00
(8) ” for money advanced to corporation .................... 2,222 47
(9) ” miscellaneous bills........... 1,726 39
(10) ” debt due appellee........... 9,898 51
$37,439 26
Upon this basis, and without allowing appellee anything for his services, there would appear to be in his hands an unexpended balance of $168.98. The trial court found this balance to be $267.02, which sum, with the further sum
Courts of law and equity are organized to ascertain the truth of litigated matters, and to apply remedies which shall as near as possible secure to each litigant the full measure of his right. If this end can be obtained without the imposition of penalties or indulgence in presumptions, which may or may not be in accordance with truth, the purpose of the law is satisfied, and none may complain. We find nothing in the record to indicate bad faith on part of the appellee. He seems to have wound up -the appellant’s business with reasonable success. Practically universal experience' shows that an insolvent business which attempts to liquidate through the hands of a receiver or trustee suffers very material loss, no matter how carefully or conscientiously it may be administered. Appellee’s management was successful above the average of such cases, and we see no good reason why he should be denied compensation- for his work.
We are satisfied that the decree appealed from effectuates substantial justice, and it is affirmed.