Opinion ID: 1698884
Heading Depth: 1
Heading Rank: 1

Heading: Three days after the date of judgment for $3,100.00 in favor of defendant and against plaintiff the present action was started.

Text: Plaintiff sought injunctive relief against levy of execution on the $3,100.00 judgment, an off-set of the judgment against plaintiff's claim on the original note and judgment for the difference. On trial in the instant case seven witnesses called by plaintiff testified to the bad financial record of defendant LeRoy Hilmer. The trial court found that LeRoy Hilmer was insolvent. The record is ample to sustain this finding. The other evidence consisted of the testimony of the cashier of the State Bank of Waverly, who gave the history of the transaction, the plaintiff, Howard Ritchie, and the files and records in the prior case. Defendants offered no evidence. II. Plaintiff's procedure in seeking injunctive relief against defendant's judgment and for set-off was proper. It has been established by the evidence that defendant, LeRoy Hilmer, has been and is insolvent. Plaintiff has a claim against him. Because of defendant's insolvency plaintiff has no adequate remedy at law to prevent irreparable injury. A comparable situation was before this court in De Laval Separator Company v. Sharpless, et al., 134 Iowa 28, 111 N.W. 438. Beginning on page 29 of Iowa Reports, on page 438 of 111 N.W., it is said: As against Sharpless, the right of the plaintiff to have relief in equity to prevent the enforcement of the judgment, so as to defeat the setting off of Sharpless' indebtedness to plaintiff, Sharpless being insolvent, is perfectly plain. The facts bring the case completely within the general jurisdiction of equity to enforce a set-off. In the replevin suit, in which Sharpless recovered his judgment, the indebtedness of Sharpless to plaintiff on account could not be interposed as a counterclaim (Code, § 4164); and, if Sharpless were to be allowed to enforce his judgment, plaintiff would be in the position of being compelled to pay this judgment, although Sharpless is indebted to it in amount in excess of the judgment in his favor. That a court of equity will furnish relief by way of decreeing an equitable set-off in such cases is well settled. (Citations) III. Defendants argue that the evidence fails to substantiate the findings and conclusions of the trial court. The factual situation and the history of the transaction support plaintiff's claim and the court's findings. It should be noted that the judgment of the trial court was for the value of the automobile at the time of its taking in replevin and there was no award of damages for the illegal detention thereof. From this judgment there was no appeal. The judgment in the sum of $3,100.00, after its rendition, stood in lieu and stead of the automobile which had been disposed of. We, this, have a situation where defendant was found entitled to possession of the automobile or, in this case, a judgment in the sum of $3,100.00. When defendant was awarded the automobile, or its value, he remained obligated upon his original purchase price, which was not paid. By no method of calculation would defendant be entitled to the automobile or its value and at the same time be relieved of his original obligation to pay for the automobile. Stated in another way, chronologically, the plaintiff sold the car to defendant and took defendant's note and conditional sales contract therefor. On default of payments due under the contract plaintiff repossessed the automobile and resold it for the equivalent of $3,050.00. Had the transaction ended there the defendant would have been entitled to a credit upon his original note in that amount. By virtue of the defendant's appeal the transaction did not end at that point. On defendant's appeal replevin of the car was held to be improper and the defendant entitled to possession. In lieu of the car he has a judgment in the sum of $3,100.00. If he has the car or its value he still owes for its purchase price. As between the parties defendant is not entitled to credit for $3,050.00 received by plaintiff for the car, plus a judgment for $3,100.00 representing the value of the car. To allow defendant both would be giving him $6,150.00 for his note of $3,703.68. It would give him considerably more than the original purchase price of the car. The $3,050.00 received by plaintiff on the second sale of the car does not enter the picture, except as it represents the automobile. Defendant is entitled to credit on his purchase price note for the $3,050.00 received by plaintiff or the judgment for $3,100.00, but not both. If defendant were to have both he would be twice receiving pay for the automobile.