LUCIEN MONTGOMERY ET AL., APPELLANTS,
v.
WM. M. KNOX ET AL., APPELLEES

Fla. | 1883-06-01
20 Fla. 372 Florida Supreme Court (1883) Positive Treatment
Cited by 6 cases

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Synopsis

Plaintiffs sued defendants for damages based on false representations regarding the existence of the Florida Mutual Fire Insurance Association, seeking appointment of a receiver in equity. The Florida Supreme Court reversed the lower court's decree and dismissed the bill, holding that if the Association was not a corporation, plaintiffs could only pursue a remedy at law for fraud against the individual defendants, not seek equitable relief like receivership.


Holding

Plaintiffs cannot obtain equitable relief such as receivership based on false representations regarding the Association's existence. If the Association is not a corporation, any cause of action is personal against the individual defendants and must be pursued at law, not in equity. Additionally, if the Association is an unincorporated partnership, all members must be parties to the suit, which plaintiffs failed to accomplish.


Key Quotes

“The plaintiffs throughout their bill repudiate the idea that the Florida Mutual Eire Insurance Association is a corporation. They expressly and repeatedly aver that the defendants, Montgomery, Miller, Means and Keep and their agents in representing that such a corporation existed made a false representation and deceived them to their damage.”

Establishes that plaintiffs themselves denied the Association's corporate existence and framed the case as one involving fraud by individuals.

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Facts & Procedural History

Plaintiffs alleged that defendants Montgomery, Miller, Means, and Keep falsely represented that the Florida Mutual Fire Insurance Association was a co…

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Opinion of the Court
Mr. Justice Westcott

Mr. Justice Westcott

delivered the opinion of the' court.

The principal difficulty in this case is to ascertain its pre cise character as presented by the bill. The plaintiffs throughout their bill repudiate the idea that the Florida Mutual Eire Insurance Association is a corporation. They expressly and repeatedly aver that the defendants, Montgomery, Miller, Means and Keep and their agents in representing that such a corporation existed made a false representation and deceived them to their damage. The ease,therefore, must be treated as one in which no such corporate existence is alleged or claimed.

Again, if the Association named was not a corporation, if this is the result of the allegations of the bill, then as a simple company nothing more than the incidents of an ordinary partnership would exist between these plaintiffs and the defendants named. Of this partnership or company plaintiffs themselves would be members to the same extent that the defendants were and their rights and liabilities would be fixed by their contract. In this aspect of the case'the demurrer would lie if for no other reason, because it is apparent upon the face of the bill and exhibits that only certain of the partners, clothed with particular powers, are made parties. The general rule is that all the members of a partnership must be parties plaintiff or defendant. The plaintiffs here have not the power to sue this unincorporated association if it be such, by making only particular officers of the association parties.

We think, however, that this must be treated as a suit by the plaintiffs against the defendants, Montgomery and others, for damage resulting from a false representation by them. If the facts existing or alleged here constitute any cause of action it is personal against these individuals and remedy is at law. As a matter of course we do not decide that they have any such cause of action. This is a question for the court of law to determine when the matter is brought before that tribunal for adjudication. We simply say that whether they have any cause of action against these defendants for damages resulting from this alleged false representation or not it is in no event ground upon which a receiver should be appointed to take charge of the effects and continue the business of “ The Florida Mutual Fire Insurance Association ” for any purpose in a suit in equity where no such corporation or the members of no such association are made parties.

For the reasons given we are constrained to reverse the decree and to dismiss the bill without prejudice generally to such proceedings as the plaintiffs may see proper to institute at law against the named defendants, or in equity against such association either as a corporation or an association.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Holman Willis v. Mrs. M. C. Fowler, 102 Fla. 35 (Fla. 1931)
    …ever thought of filing a bill in equity’.” The rule that where the only relief obtainable on a bill in equity is one for which an adequate remedy at law exists, the bill will not be sustained, has been recognized by this court. Montgomery v. Knox, 20 Fla. 372; Tampa & Gulf Coast R. Co. v. Mulhern, 73 Fla. 146, 74 So. 297. Some substantial ground of equitable jurisdiction must be both alleged and proven before a mere money decree will, be granted. Gentry Futch Co. vs. Gentry, 90 Fla. 595, 106 So. 473. It…
  • Moss v. Sperry, 140 Fla. 301 (Fla. 1939)
    …ay retain it to the exclusion of the other. But the general rule in this jurisdiction is that where the only relief obtainable on a bill of equity is one for which an adequate remedy at law exists, the bill will not be sustained. Montgomery v. Knox, 20 Fla. 372; Tampa & Gulf Coast R. Co. v. Mulhern, 73 Fla. 146, 74 So. 297; McClellan v. Marion Holding Co., 103 Fla. 646, 137 So. 887; Willis v. Fowler, 102 Fla. 35, 136 So. 358; See also 10 R. C. L. 316-31; 19 Am. Jur. 64. However, equity will lend its aid wh…
  • Richardson v. C. W. Smith & Co., 21 Fla. 336 (Fla. 1885)

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