45 S.E. 102 | S.C. | 1903
July 9, 1903. The opinion of the Court was delivered by
The nature of this action is stated in the judgment of the Circuit Court, which is as follows: "This is an action brought by the plaintiff, as trustee in bankruptcy of George H. Feagle, to recover from the defendant, Kohn, certain goods, or the value thereof, sold by the said George H. Feagle, bankrupt, to the defendant, Kohn, within four months before adjudication of bankruptcy, on the ground that said sale was illegal and a preference under the United States bankrupt act of 1898." After quoting at length from the case of Sirrene, Trustee, v. Stover MarshallCo.,
The exceptions involve only questions of fact. It is, therefore, important to determine the nature of the action, and the issues raised by the pleadings; for if the issues are equitable, it is the duty of the Court to review the findings of fact; whereas, if the issues are legal, this Court has no such power. The action, as stated by the Circuit Court, is to recover certain goods, or the value thereof, sold by the bankrupt, Feagle, to the defendant, Kohn, on the ground that said sale was illegal, and a preference under the bankrupt act. It is erroneous to suppose that the Court in all cases has jurisdiction of fraud, only when exercising its equitable powers. Mr. Pomeroy, in sec. 911, vol. 2, of his philosophical work on Equity Jurisprudence, thus states the fundamental principles concerning the equitable jurisdiction: "(1) Where the primary right or interest of the plaintiff is equitable only, the jurisdiction is necessarily exclusive, and will be exercised without regard to the nature of the relief; otherwise the party would be without remedy, since courts of law could not take cognizance of the case. (2) Where the primary right is legal and the remedy sought is purely equitable, *72 the jurisdiction is also exclusive and always exists, but will not generally be exercised if the legal remedy which the party might obtain is adequate, complete and certain. (3) Where the primary right is legal and the remedy is also legal, a recovery of money simply, or of the possession of chattels, the jurisdiction is concurrent, and only exists where the remedy which the party might obtain at law is not adequate."
The case of Moore v. Edwards, 1 Bailey, 23, involved the question whether a court of chancery alone could relieve a party from mistake. The Court thus states the rule: "Accidents and mistakes certainly constitute one branch of equity jurisdiction; but it is not peculiar except when a discovery is indispensible, or the nature of the relief such as to require the extraordinary aid of chancery. Actions at law to recover back money paid by mistake, constitute in all the books of practice a conspicuous class of causes for which the action of assumpsit may be maintained at law; and there is no question that in general, when the facts can be proved according to the rules of the common law, and the remedy is such as a court of law can administer, consistently with the prescribed modes of proceeding, mistakes may be inquired into in a court of law. In the case under consideration, the plaintiff sued out a sci. fa. to revive a judgment against the defendant, and as evidence of payment the defendant produces an execution on which is indorsed the word `satisfied;' the plaintiff replies it was so indorsed by mistake. There is nothing magical in the term itself. The evidence offered was admissible according to the rules of the common law; the relief was such as a court of common law was competent to give, and the Court, therefore, clearly had jurisdiction."
In Gregory v. Ducker,
What was said as to rights arising under the recording acts, is equally applicable to the bankrupt act. In Maddox
v. Williamson, 1 Strob. L., 23, the Court says: "An assignment no more than a deed can, in a Court of law, be set aside and cancelled; but when either deed or assignment comes into question in an issue here, it will, if fraudulent and void, be for the purposes of that issue regarded as a nullity." The principle is thus stated in McKenzie v. Sifford,
It was not necessary to resort to the aid of the Court in the *74 exercise of its equitable jurisdiction to determine whether Kohn had reasonable cause to believe that Feagle, in transferring the stock of goods to him, intended to give him a preference over all other creditors. The remedy at law was adequate for that purpose. Therefore, this Court is without jurisdiction to review the facts found by the Circuit Court.
It is the judgment of this Court, that the judgment of the Circuit Court be affirmed.