Case Name: KLAMATH LUMBER CO. v. BAMBER
Court: Oregon Supreme Court
Jurisdiction: Oregon
Decision Date: 1915-01-19
Citations: 74 Or. 287
Docket Number: 
Parties: KLAMATH LUMBER CO. v. BAMBER.
Judges: 
Reporter: Oregon Reports
Volume: 74
Pages: 287–295

Head Matter:
Motion to dismiss denied June 16, 1914.
On the merits submitted on brief January 11,
affirmed January 19, 1915.
KLAMATH LUMBER CO. v. BAMBER.
(142 Pac. 359; 145 Pac. 650.)
Appeal and Error — Decisions Reviewable — Finality of Judgment— “Abate.”
1. An order that an action abate is a final judgment within Section 548, L. O. L., allowing an appeal from such a judgment; the word “abate” meaning that the action is utterly dead and cannot be reviewed, except by commencing anew.
Pleading — Fact or Conclusion — Dissolution of Corporation.
2. In corporation’s action on notes, in which defendant pleaded in abatement that plaintiff had not filed .the annual reports nor paid the annual license fees required by law, a reply admitting the allegations as to filing its reports and paying its license fees, and in avoidance averring that the corporation had dissolved and brings the action to wind up its business, as is allowed by statute, is a mere conclusion of law, the reply not alleging that the steps required by Section 6701, L. O. L., as amended by Laws of 1913, page 465, providing for dissolution by resolution of stockholder’s meeting, had been taken.
Corporations — Dissolution—Judgment.
3. Under Section 6699, L. O. L., providing that corporations expiring by limitation, or dissolved under the provisions of Section 6701, as amended by Laws of 1913, page 465 (requiring a filing of a statement of vote of dissolution with the Secretary of State, ete.), or annulled by forfeiture or other cause by the judgment of the court, to continue as bodies corporate for five years to settle their business, where the corporation has not expired, by limitation, the “forfeiture or other cause” must either or both be the result of a judgment of the court.
[As to discretion of court in respect to kind of judgment to be entered against corporation for violation of law where statute prescribes forfeiture of franchise as penalty, see note in Ann. Cas. 1912D, 822.]
Corporations — Dissolution—Proceedings—Statute.
4. Sections 6716-6719, L. O. L., providing that a corporation neglecting for two consecutive years to furnish to the Secretary of State any statement required by law, or to pay any license fee, shall be dissolved, requiring the Secretary of State to report to the Governor a list of delinquent corporations, whereupon the Governor 'Shall by proclamation declare them dissolved, and providing a penalty for exercising the corporate powers thereafter, are penal and must be strictly construed, and failure to pay the fees does not ips'o facto dissolve a corporation, but the filing of a list and proclamation are necessary to dissolution.
[As to acts and proceedings to dissolve corporations, see note in 134 Am. St. Eep. 309.]
Corporations — Right to Sue — Noncompliance With Statute.
5. Under the express provision of Section 6708, L. O. L., a domestic corporation, which has failed to pay the last annual license tax, cannot maintain any suit in any eourt of justice within the state while such delinquency continues.
Abatement and Revival — Plea in Abatement — Disposition.
6. A plea in abatement cannot be joined with a plea in bar, and must be disposed of before an answer to the merits can be considered.
Corporations — Plea in Abatement — Waiver by Answer to Merits.
7. In view of Section 6709, L. O. L., providing that a- plea that any domestic corporation has not paid any tax or fee required by law may be interposed at any time before trial on the merits, and, if issue be joined thereon, it shall be first tried, and mere filing of an answer to the merits does not of itself deprive the defendant of a separate plea in abatement, based on the corporation’s delinquency.
From Klamath: Henry L. Benson, Judge.
In Banc. Statement by Mr. Chief Justice McBride.
This is an action by the Klamath Lumber Company, a corporation, against Stella M. Bamber and F. C. Bamber. Bespondent now moves to dismiss the appeal. Plaintiff, which is a corporation, brought an action against defendants upon three promissory notes. Defendants pleaded in abatement that plaintiff in doing business in the State of Oregon without having complied with Sections 6707 and 6708, L. O. L., by filing the reports and paying the license fees required by the statute. Plaintiff replied, and, upon trial of defendants’ motion for judgment upon the pleadings, the court found for defendants, and rendered the following judgment:
“This cause coming on to be heard at this time upon defendants’ motion for judgment on the pleadings, and the court being fully advised in the premises, it is hereby ordered and adjudged that the plaintiff’s action herein abate, and that the defendants have and recover their costs and disbursements herein taxed at $23.90.”
The plaintiff appealed to this court from the above judgment, and defendants move to dismiss the appeal, for the reason that the judgment appealed from is not a final judgment within the meaning of Section 548, L.“ O. L.
Mr. W. H. A. Renner, for the motion.
Mr. W. M. Duncan, contra.

Opinion:
Opinion by
Mr. Chief Justice McBride.
The effect of the order abating the action and awarding costs and disbursements to defendants was to dismiss and terminate the case. Plaintiff could not after such a judgment proceed in the same action by paying up its delinquent fees and making its reports. As used in reference to actions at law, the word "abate" means that the action is utterly dead and cannot be revived except by commencing anew: Bouvier's Law Diet., tit. "Abatement"; "Words & Phrases, same title.
Plaintiff's action was terminated by the judgment, and it is eo instante liable to a levy of execution for costs.
The motion is overruled.
Motion to Dismiss Denied.