166 Mass. 577 | Mass. | 1896
There has been some difference of opinion among learned judges in former years in regard to the extent to which State insolvency laws can be made applicable to debts con
The intimations in some of the earlier cases in that court, that a discharge might be given effect in the courts of the State in which it was granted when it would be held invalid in the courts of other States and of the United States, have never been incorporated into the law, and our own decisions are to the contrary. Kelley v. Drury, 9 Allen, 27. Murphy v. Manning, 134 Mass. 488. Phoenix National Bank v. Batcheller, 151 Mass. 589.
In the present case, the plaintiffs are copartners engaged in
Judgment for the plaintiffs.
I am unable to agree with the decision of the majority, and, as two other of the judges are of the same way of thinking, I deem it best to state the fact, and to give my reasons. The Commonwealth of Massachusetts at the time of the insolvency proceedings had jurisdiction, and, subject to the Constitution of the United States, had sovereign power, over the defendant and over the plaintiffs Chase and Chamberlain. As between those persons, it had the power and the constitutional' right to declare all obligations which were entered into after the insolvent law was passed at an end when a discharge should be granted. Its power was derived from its power over the persons of the parties named, and could not be affected by the nature of the obligation, or by the fact that others also were interested in the obligation who were not within its power. Jurisdiction and sovereignty deal with persons and with all legal relations of persons, not with particular kinds of contracts. It is true that Massachusetts could not discharge the claim of a person outside its territory,— in this case the plaintiff Griffin. But that did not affect its power to discharge Chase and Chamberlain, who were within it. It may be that, if it did discharge them, the plaintiff Griffin cannot recover; but that is not because Massachusetts has dealt with his claim or has attempted to deal with it ultra vires, but because he cannot recover without joining others whose claim this State could deal with and has discharged. It seems to me an inversion to say that a jurisdiction otherwise perfect is defeated because of the secondary and indirect effects it may have on persons outside the jurisdiction. The true order of subordination appears to me the other way. In fact, in other cases,— for instance, divorce, — courts having jurisdiction of one party do not scruple to deal with obligations between that party and another out of the State, although logically the effect upon the rights of the other party in that case is direct. Loker v. Gerald, 157 Mass. 42, 45. 1 Bish. Mar. & Div. §§ 698-702, 837. See also Blackinton v. Blackinton, 141
One who accepts a promise jointly with others acquires a property which has the inherent vice that anything which disables his fellow contractees from suing will prevent his maintaining a suit. For instance, if one partner has set off his own debt wrongfully against a debt due the firm, the innocent partners cannot recover. Homer v. Wood, 11 Cush. 62. Grover v. Smith, 165 Mass. 132. So, “ when once the statute [of limitations] runs against one of two parties entitled to a joint action, it operates as a bar to such joint action.” Marsteller v. M'Clean, 7 Cranch, 156, 159. Perry v. Jackson, 4 T. R. 516. Freeman, Cotenancy, §§ 375-378. I presume it would make no difference that one of the parties lived out of the State. If the statute of limitations bars an action in such a case, I see no reason why the insolvent law should have a less effect.
I am authorized to say that the Chief Justice and Mr. Justice Allen agree with my view.