2 Stew. 280 | Ala. | 1830
Previous to any examination of the merits of this cause, it is necessary to take a slight notice of the exceptions urged against, the regularity and sufficiency of the bill. It is objected, that the bill is fatally defective in not having prayed process against the principal bank, as well as its branch; that all persons having an interest should have been made parties; that praying relief against the agent, does not make the principal a party, and that- none- can be regarded as a party.
Another objection urged against this bill is, that the nature of the defence relied upon at law, in aid of which the discovery is sought, is not set out. So far as this position' is sustained in point of fact, the law is believed to be with the defendant in error. It has been ruled, that “a bill for a discovery and injunction at law, must state some particular matter which the complainant has a right to seek a discovery of, as material to his defence, and without which he cannot proceed to trial. A mere inquiry, because the grounds of the suit at law are unknown, cannot be maintained, being a fishing bilL”
The points relied on by the errors assigned, are: 1. That the defendant below should, on the final hearing, have been perpetually injoined, inasmuch as the two main grounds of equity are admitted by the answer. 2. In case this assignment should not be supported, then that the exceptions to the second answer should have been sustained. 3. That the exceptions to the first answer, which were, overruled, should have been sustained.
The two main grounds of equity referred to, are understood to be, 1. That prior to the creation of these responsibilities, the partnership between J. & W. Lucas was dissolved; consequently W. Lucas was not bound by any of the acts of J. Lucas. 2. That some of the notes were drawn and others indorsed by T. Fort, as attorney for J. & W. Lucas; and when suits were commenced on the several notes, in the Superior Court of Baldwin county, Georgia, service of the writs was accepted in some instances by J. Lucas, in the name of the firm, and in the residue of cases, by T. H. Kenan, as attorney for the firm; that both Fort and Kenan acted by virtue of powers under seal, executed by J. Lucas, which acts are contended to have been void as against this plaintiff, as also the acceptance of service of the writs by J. Lucas, and that such would have been the case if the partnership had then existed.
These are facts charged, and supposed to have been admitted by the answer. The Cause having been set for hearing on bill, answer and exhibits, and the decree of the Circuit Court having been rendered thereon, the present decision must be governed by the same evidence. First, as to the fact of the dissolution, the answer neither denies nor admits the due execution of the instrument purporting to be the dissolution, signed by J. Lucas; but disavows any knowledge concerning it. It however positively and absolutely denies any publication or notoriety of the dissolution, or any knowledge, or any privity of the fact, by the hoard of directors of the branch bank, if it did take place as charged; and insists- that the articles of dissolution, if they can have any effect, can only be operative as between the parties to it; that it cannot affect the bank or any other creditor, for the want of notice, expressed or implied; and it is insisted in argument by this defendant, that to make a dissolution effective, there must be personal notice to those having previous dealings;
In the case oi Ketcham, and Black v. Clarke,
In this, case, neither actual notice, nor publication of the dissolution, is charged by the plaintiff; but he contends
But it is also contended, that J. Lucas having been a director, the bank was affected with notice of the fact of the dissolution, &c. and therefore the complainant is entitled to a disclosure when he became so; and to all the benefit derivable from his knowledge of any material facts, as knowledge of the same in the possession of the bank; and that on this point the answer is indefinite and insufficient.
The right of the plaintiff to a further disclosure as to the time of J. Lucas being a director of the bank, cannot be material, as the unqualified admission by the answer, that he was a director, must be understood with reference to the time charged. To this it is answered on the part of the defendant, that when J. Lucas assumed the attitude of borrower, he ceased to be a lender; when he became a borrower, his agency was suspended, for his position was adverse to his principals interest; also, that in the case of a corporation aggregate, the knowledge of one corporator is not knowledge to the others. These positions, I .think,
The second branch of the plaintiff’s first position, brings in question the legality or obligatory effect of the acts of the attorneys, in the execution of the notes and indorsements, and the acceptance of service of the writs.
It is contended that one partner cannot accept service for his copartner, nor bind him by deed or any specialty; also, that when service is accepted, the hand writing must be proved, and that not being shewn here, the Court below had no evidence of the service of the writs in Georgia. If the proceedings in that State cannot be regarded as judgments, constituting either conclusive or prima facie evidence of the debts, but on the contrary, are void, then, inasmuch as the records purport judgments, and are the foundation of the suits injoined, the plaintiff is entitled to relief against them in some tribunal; and unless he has an adequate defence at law, he may expect relief in chancery. That the ordinary and legitimate sphere of mercantile transactions is limited to simple contracts; and that the general power delegated by one member of a firm to another, by forming a mercantile connection, is equally limited; are propositions to which I readily assent. The consequence of which is, that one partner cannot directly bind another by deed; nor can he constitute an agent or
In this case, however, it is not contended that the complainant has been subjected to any immediate obligation by deed or bond, either by J. Lucas, the partner, or by either of the attorneys appointed by him. But it is said that the principles of the objection equally restrained J. Lucasfrom delegating by power, under seal, the authority to Fort, or Kenan, to sign or indorse the notes or accept the service of writs, or do any other act; that even an act which would be valid against the firm without a seal, if done by the partner, or by agent under a parol appointment, would be void, if executed by specialty. On this point, I think a nice discrimination is required. I take the distinction to be this : that if the bond or deed constitutes the contract, it must be made the evidence of it, and determines the remedy; then this principle applies, because the legal effect of the contract, the power of the remedy, and the rules of evidence are essentially different, the security being of higher dignity.
If it were admitted an available resistance could have been made pending the suits, to the service of the writs
It is true as contended, the answer would have been more satisfactory, had it stated the grounds or authority for this knowledge, information- and belief of the notice ; but as the hearing was had and at the instance of the complainant on the bill, answer and exhibits, and the charge is also vague, the answer must be received as the best evi
■The plaintiff, however, insists, that his bill does not shew there is a judgment in his favor in the suits brought .on the notes in this state, and the answer setting it out, is new matter; and if the'plea of former recovery binds him, the replication of nul tiel record, binds the bank. It is found the bill charges, that “in the year IS22, suits were
It is also objected, “that the answer sets up new matter in avoidance of the allegations in the bill; and that those matters should have been proven on the trial; otherwise, all the allegations in the bill may be admitted, and
The extent and application of this rule, though supposed by Chancellor Kent, in 1816, to have been well settled, not only in the English jurisprudence, but equally in our own, has continued to present difficulties, and produce conflict of decision. In the case of Hart v. Ten Eyck,
And Chancellor Kent remarks, “that the distinction in the application of the rule is not between Courts of law and equity, but between pleadings and evidence. If an answer is introduced collaterally, and merely by way of evidence in chancery, it ought to be treated precisely as in a Court of law. If in a Court of law, the plea confesses the matter in demand, but avoids it by other circumstances, the proof of avoidance is incumbent on the defendant; that the same distinction had been lately taken in the case of Ormond v. Hutchinson, before Lord Erskine;
In the case of Leeds v. The Marine Insurance Company,
It is further argued on the part of the plaintiff, that the judgments obtained in Georgia, on which the suits at law were brought, are void for want of jurisdiction in the Court there; and in support of this position, various authorities are cited; the highest and most recent of which will be noticed. The position rests on the facts already adverted to, relative to the plaintiff’s non-residence in that State; -the objections to the service of process, &c. from which it is contended, the Court had no jurisdiction of his person. The questions presented are, what is the effect of the judgments and how far is it competent for Chancery to interfere with the remedy sought at law upon them?
It is entirely clear, that the earlier doctrine on this subject has undergone, within the last ten years, important changes in several of the States, and particularly in the Courts of New York. The principle maintained in New York, in the case of Hitchcock v. Fitch and Aikin,
■ In the case of Andrews v. Montgomery, et al,
It may be here remarked, that the Constitution of the United States declares “that full faith and credit shall be given in each State to the public acts, records and judicial proceedings of every other State"; and Congress may, by general law, prescribe the manner in which such acts, records and proceedings shall be proved, and the effect thereof:” and by the act of 1790, Congress provided for the mode of authenticating the records and judicial proceedings of the State Courts, and then further declared, that “the records and judicial proceedings authenticated as aforesaid, shall have such faith and credit given to them in every Court within the United States, as they have by law or usage ip the Courts of the State, whence the said records are, or shall be taken.” Story, Justice, observed, the decision of the case mentioned, depended altogether upon the .construction of the Constitution and law of the United States, as above quoted, “that it was argued that this act provides only for the admission of such records as evidence, but did not declare the effect .of such evidence when admitted. This argument cannot be supported. The act declares that the record, duly authenticated, shall have such faith and credit as it has in the State Court, whence it is taken. If, in such Court, it has the faith and credit of evidence of the highest nature, viz: record evidence, it must have the same faith and credit in every other Court. Congress
In this opinion it wasfurtherremarked, in substance, that as the defendant had full notice, no doubt the judgment was conclusive in New York, and must therefore be conclusive in other States; “that whatever may be the validity of the plea of nil debet after verdict, it could not be sustained in that case. The pleadings in an action, are governed by the dignity of the instrument on which it is founded. If it be a record conclusive between the parties, it cannot be denied but by the plea of nul tiel record; and when Congress gave the effect of a record to the judgment, it gave all the collateral consequences,” that the proof by an exemplification of the record is entirely equal to an inspection by the Court, of its own record. The right of the Court to issue execution, depends upon its own powers and organization. Its judgments may be complete and perfect, and have full effect, independent of the right to ■issue execution. By a majority of the Court, that judgment was affirmed; and this is to be considered ’ a leading case on the doctrine most current at present throughout the United States.
The case of Hampton v. M’Connel,
The case of Shumway et al. v. Stillman,
The Supreme Court of the United States, as late as 1828,
1. That a record of recovery, shewing that a Court of another State has taken cognizance of the matter, is prima facie evidence of its having had jurisdiction.
2. That ajudgment of a Court of competent jurisdiction is valid, and binding in every other Court, until reversed, or otherwise vacated.
3. That a judgment or order of a Court, having no jurisdiction, is a mere nullity, but the non-residence of the defendant does not deprive the Court of jurisdiction whore there has been legal service of process.
4. That ajudgment of a Court in one of the States, appearing from an exemplification of the record, certified in due form, is entitled to the same credit, validity and effect in every other Court of the United States, that it had in the State where it was pronounced; consequently, if, in such Court, it has the faith, credit and effect of record evidence, it must have the same in every other Court.
' 5. That debt is the only proper action on a State judgment, and mil iiel record, the only proper general issue in such action; but it is not the only proper plea; for where the Court, in which it was rendered, has not jurisdiction, or when the judgment is otherwise void, this may be pleaded in bar, or may, in some cases be given in evidence under the general issue.
6. That there can be no averment in pleading against the validity of a record, though there ma3r be against its operation.
Then, according to those principles of Chancery, and for the reason that the plaintiff had notice of the process, which, at least, is sufficient, when connected with the circumstance of his having adopted and ratified the recovery by pleading it in bar, and i’eceiving the benefit of it in the former suits, I am .of opinion, equity can afford him no relief on the ground oí any alleged irregularity in the judgment or proceedings in the Court of Georgia.
With respect to any alleged compromise between the
But it is contended by the plaintiff, that equity having obtained jurisdiction, will retain the cause to do justice; 'to which it is replied, that from the disclosures of. the answer, the plaintiff could have made his defence at law, while the cases were pending in Georgia; under such circumstances,- equity can afford him no relief.
The doctrine is found to be, that a decision of a Court of competent jurisdiction, being, res judicata^ is conclusive and binding on ail other Courts of concurrent jurisdiction;
It is not the province of Chancery to revise judgments, or correct errors at' law; the jurisdictions are, and ought to remain separate and distinct. Nor will it relieve against a judgment on the ground of its being contrary to equity, unless the defendant was ignorant of the fact in question, pending the suit, or it could not be received as a defence at law, or unless without any neglect or default on his part, he was prevented by fraud or accident, or the act of the opposite party, from availing himself of thedefence,
The large amount, near $ 40,000, contested by this bill, the variety and intrinsic importance of the principles involved, united with the high professional attainments elicited by the discussion, have demanded of this Court a thorough investigation of the subject; and though conscious I have been unable to do it justice, yet the conclusions to which I have arrived, are the best result of my deliberate examination, and a due consideration of the authorities.
I am therefore of opinion, that the decree of the Circuit Court, dismissing the bill, should be affirmed, and in this result, the Court are Unanimous.
The object of the complainant’s bill is, professedly, to transfer the causes pending at law against the appellant, to the equity side of the Court.
It is no more a bill for discovery than every other bill for relief, which calls upon the defendant to disclose by his answer, facts and circumstances preparatory to such relief. The bill alleges that the complainant is advised he cannot make his defence at law, because of the judgments recovered against him; prays a perpetual injunction, and for general relief. These features, it is conceived, determine its character to be that of a bill for relief. Besides, it has none of the distinguishing characteristics of a bill for discovery, technically so called. It does not state the nature of the defence at law, to enable the Court to judge whether the discovery sought be pertinent or material to the issue. It does not shew whether the complainant believes that he will be able to obtain a discovery of the several matters charged, from the defendant.
■Having determined the character of the bill, the first question that arises is, whether it shews a title to relief in equity. In the distribution of the subjects cognizable by the laws of the countay, gome pertain exclusively to the courts of law, some concurrently to law and equity, •and others exclusively to equity. With regard to the first, equity never interferes; as in the ascertainment of damages for a personal injury. In relation to the second, either Court sometimes acts; as in matters of account;but the -Court which first acquires jurisdiction, makes a definitive disposition of the subject; unless some question shall arise peculiarly proper for the determination of the -other. The third belongs exclusively to equity; as all cases of trust. Equity interposes its aid, when the defence is difficult or doubtful at law. This difficulty or doubt is not understood as relating to the proof alone, but to the form or nature of the defence also. If it be difficult or impracticable to procure the necessary proof to sustain thede■gal defence, and the material facts rest alone in the knowledge of the plaintiff, the defendant may elicit from him a disclosure, by exhibiting his bill in equity, in aid of the law forum. But when the defence is full and complete, then equity cannot wrest from it the decision of the cause. The rules which obtain in equity are fixed and ascertained with as much certainty' as those which prevail at law; and before a party can legitimately invoke their assistance, he must bring himself within the scope of the principles on which they are founded. Without attempting in this place, to give to these general propositions a particular application, I proceed to consider the bill in its details, not however in the order in whieh'they are presented, but as the assumed equity of the case may seem to require.
If it be true as alleged by the appellant, that he was not amenable to the bank in the Court in Georgia which rendered thejudgments against him, it is competent for him to shew that fact in his defence at law; and though the record may shew that service of process was regularly effected, the appellant cannot be thereby foreclosed from proving the reverse to have been true, unless he had ap
But apart from express authority, it would seem that, upon principle, it was competent for a defendant to avoid a judgment by shewing his non-amenability to the forum that rendered it; unless it appeared from the record that the question of jurisdiction had been directly determined against him. The principle on which judgments are holdcn to be conclusive, is, that the facts and recitals they contain, are supposed to have been adjudicated by a Court of adequate powers; and were they to continue open to a re-investigation, there would be no end of litigation. This being the reason why judgments as evidence are of a character so conclusive, or evidence at all, it follows that they are no evidence of matters which do not appear to be res adjudicata. Cessante ratione legis cessat ipsa lex.
In my opinion then, the jurisdiction of the Court that rendered the judgments, is a fit subject of inquiry at law. The relief is there ample, and consequently the assistance of equity cannot be given. ' If then the judgments are void, there can be no resort to equity; and if valid, the appellent cannot then be heard, because he shews no sufficient reason why he did not defend before judgment. The want of personal notice of the pendency of the actions, can avail nothing, unless for that cause, the judgment be void, which I have already said, can be inquired of at law..
The question as to the con elusiveness of the judgmentshaving been disposed of, and this being the ground assumed why equity shall entertain jurisdiction, I might close this opinion; but supposing such a course to be desirable to the parties, I proceed to consider other points presented, and Much may arise in the further progress of the cause.'
Though there can be but little difficulty in determining what is a dissolution- of a partnership inter partes, the older authorities made it somewhat aoperplcxed question, as it respects third persons. The perplexity is, however,
A change of pursuits cannot beheld as tantamount to a notice to all mankind, that the appellant bad withdrawn from the firm, and revoked the authority of his partner
Nor can a change of residence be held to furnish satisfactory proof of the dissolution of a partnership. It may be thought promotive of the interest of their concern, that the partners should live in different places, and it is by no means unfrequent for them to be concerned in mercantile houses in different countries at the same time. To hold these circumstances, (equivocal at best,) on which the appellant seems to rely as evidencing a dissolution, to have that effect, would be to disregard the rules of law upon this subject, and it would be difficult, if not impossible to say upon what principles such a decision was sustained.
It is insisted by the counsel for the appellant, that though there may have been no sufficient notice of a dissolution as to persons in fieri when it is said to have taken place, yet, that notice in a public paper was not necessary to prevent a recovery by the bank of Darien; because it had no legal existence at that time. I cannot comprehend the force of this argument, and the most mature deliberation convinces me that it is not sustainable. With equal justice might it be said that notice of dissolution was not necessary with respect to those who migrated to Georgia subsequent thereto, or to infants who after that event had attained the age of legal discretion; this, I apprehend would not be contended for. The principle of the rule which requires notice, actual or constructive, being general in its application, the rule itself must operate co-extensively. The appellant does not allege a notice to the bank of Darien, of the dissolution of the firm of J. & W. Lucas, and the circumstances examined are not, in my judgment, any notice of that fact.
Upon the hypothesis that as it respects that corporation, the partnership is still continuing. I will now consider whether a partner has any authority as such, to acknowl-
The right of one partner to appoint an agent to conduct the business of the concern, results unquestionably from the genuine authority of partners. Tillier v. Whitehead.
As an exception to the general authority of partners, it is a correct proposition that even in the course of their commercial dealings, one partner cannot pledge the responsibility of the firm to a compliance with engagements entered into in the partnership name by writing under seal. This exception is founded upon technical reasons, and on the general policy of the law. S'ueh power, it is said, would have a most misehievious tendency, as it would enable a partner to give to a favourite creditor, a security on the real estate of his co-partner, and for the additional reason that the consideration of specialties is not open to inquiry in a Court of law. The latter reason does not obtain in this country to the full extent. In actions founded on bonds, it is competent for the defendant to impeach their consideration by special plea.
The question presents itself: does the power of attorney made by John Lucas under his seal in the name of J. & W. Lucas to Tomlinson Fort, to make or indorse notes in their names, come within the principle of this exception. I frankly acknowledge that on this point I have had more difficulty in attaining a satisfactory conclusion than on any other feature in the cause. The first inclination of my mind was, that the objection did not avoid the notes made under the power, as to the appellant,- and that inclination has not been removed by more mature reflection. Though the power be void as to the appellant, it does not necessarily follow that every thing doné under its authority is also void, if it be valid against John Lucas who sealed it. Such a conclusion would suppose that a partner in giving an authority to do any act in the partnership name, must employ the name of his co-partner. This is not the law. It is competent for him to give an authority to transact business for the firm without using the firm name. If then the power of attorney to Fort be avoided as it respects its execution by the appellant, it is still obligatory upon John Lucas, and must be considered asan authority from him to make and indorse notes in the name of J. & W. Lucas. The use of a seal does not forestall the appellant in any legal'defence to the
The proposition that a partner cannot bind his copartner by seal, cannot be carried to every supposable case in which a seal is used. In Salmon v. Davis,
It is argued by the appellant that as John Lucas, who was a director of the branch bank at Milledgeville, was advised of the dissolution of the partnership of J. & W. Lucas, the bank itself had constructive notice of that fact. I am unprepared to accord to this argument any weight. It is unreasonable to suppose that he made any disclosure to the directory which would have rendered his applications for discounts unavailing. Besides, to give the argument any degree of plausibility, we must suppose that as a director, he. passed upon his own applications; natural justice, sustained by that delicacy common to the human family, forbids such an idea. With regard to his solicitations for loans, his attitude in relation to the bank was changed, he was a borrower and not a lender, and as he was passive, it was unreasonable that the directors who gave him accommodation should be affected by a constructive notice of any fact which he individually possessed.
If an agent acquire a knowledge of a fact while not in the discharge of his duties as such, but when engaged in other business, his principal cannot be presumed" to have that knowledge;
As another ground ior the interposition of equity, the appellant insists upon the payments made by William P. Lucas, and his release from further liability on the notes to which he is a party. It does not appear from the bill whether the pajunents were made before or after the recovery of the judgments by the Bank against J. & W. Lucas; and .if previous, whether the appellant has not been allowed credit therefor. If they were made since, he may plead them, and be allowed all benefit at law. If he cannot shew the fact of payments, and the amount paid, by legal testimony, he can compel a discovery from the bank, in aid of the trial at law. In respect to the release, this cannot prejudice the appellant’s rights. Though. William P. Lucas appears to be the maker of some of the notes, and an indorser on others prior to the appellant, yet the appellant alleges that the proceeds were received by John Lucas. Thus it appears that the name of William P. Lueafi was lent to J. & W. Lucas, to enable them to draw money from the Bank; and he could not be liable, to them as the maker or prior indorser of some of the notes, because there would be wanting a consideration to support a promise. The release, therefore, of W. B. Lucas, does not entitle the appellant to a hearing in equity.
What I have said in regard to the payments by W. P. Lucas, is applicable to the payments by A. R. S. Hunter.
The judgments cannot be avoided in equity as to the appellant because they were taken against J. & W. Lucas,, after the death of John Lucas. The objection, if it he
With respect to the -arrangement between the branch bank and J. Lucas, for an extension of the time of payment of the notes described in the appellant’s bill, and the giving of a new note for the aggregate amount, that circumstance cannot in my judgment warrant the interference of equity. If the Court in Georgia had jurisdiction of the person of the appellant, the judgments are valid, and I have already shewn that in my opinion it was competent for his co-partner, to give it, though he may not have had actual notice of the pendency of the suits, yet he must nevertheless be bound by the judgments as having a constructive notice through the agent of J. & W. Lucas, or his partner lohn Lucas, who pro re nafa was his agent; and could it have availed the appellant, he should have shewn on the trial in Georgia, that a new note was given. Besides it would not be compatible with the principles of equity to give the appellant a hearing for this cause, unless he first pays, or shews a readiness to pay the consolidated note. If it be outstanding, he cun prima fasie sustain no injury. The Court will presume the common law to prevail in Georgia, and consequently, that the bank cannot make any transfer which will prejudice the legal rights of the appellant. But if the appellant deemed it necessary-for his indemnity, he could obtain a decree to have the note delivered up to be cancelled, and perhaps under some circumstances equity might' injoin a judgment until this was done, but that Court would never arrest a. trial at law for this cause. If the judgments are void, the appellant cannot be heard in equity as already shewn, because the defence is properly at law.
Having examined the material points presented by the bill, I proceed to consider several propositions which were laid down in argument.
It is insisted by the counsel for the appellant, that as the appellee has submitted to answer the appellant’s bill, the answer should fully respond to its allegations. This is doubtless a good general rule, but subject to many exceptions; thus if a bill was exhibited alleging an equitable title in the complainan t, and praying a discovery of profits, if in his answer the defendant was to deny the title, he need not answer as to the profits, or if to a bill charging a partnership and asking a discovery of accounts, the defendant was to deny the partnership, he need not disclose
With respect to the plea of “former recovery,” pleaded to the actions brought on the notes in Montgomery, it cannot have any influence upon the defence now attempted to be made to the actions upon the judgments. That plea only tendered an issue upon the fact of the recovery, and not its legality; the apparent regularity of the judgments, and nothing more. The replication to that plea was nul iiel record, which limited the inquiry of the Court to the disclosures made by the record. If a plea in one cause be evidence in another between the same parties as an admission of a fact, a question which need not here be determined, it can only be taken as proof of the extent of its allegations, or of the legitimate inferences therefrom. It does not necessarily follow, that because judgments .were recovered by the bank of Darien, against the appellant, that therefore, the appellant was amenable to the jurisdiction of the C.ourt that rendered the judgments. On the issue of nul tiel record, nothing need or can be inferred, but what the record discloses.
It is insisted by the counsel for the appellee, that the decree of the Court below should be affirmed, because the bank is not made a party to the suit. The bill recites the pendency of the suit at law in favor of the bank of Darien against the appellant, and prays that the bank may be in-joined from its further prosecution, and that a subpoena ad respondendum may issue to the branch. It is a rule well ascertained, that none are defendants, but they against whom process is prayed.
It is a general rule that all persons interested, should be made parties to a suit in chancery. This is, however, said to be a rule adopted for convenience, and may be dispensed with when extremely difficult or inconvenient .to be adhered to. The principle upon which it is founded, is the solicitude of that tribunal to prevent litigation; by-making its decrees operate efficiently upon all whose interests are involved, which can only be done by bringing them directly before the Court, that they may have an opportunity of defending their rights. The difficulty or inconvenience of making one a party, must be suggested by the bill, that it may be inquired into. In this case We are not informed why the bank of Darien was not made a defendant. According to the English practice, a locality beyond the jurisdiction of the Court would, in some instances, be a sufficient reason for not making a person in interest a party to the bill. But in this case the appellant cannot claim the benefit of this exception. Where is the greater difficulty in eliciting from the bank an answer to his bill, than from one of its branches? Both are located within the limits of another sovereignty, so that process of suhpcena could not be executed on their officers. The same course must have been taken to have obtained the answer of either, and consequently, the argument of difficulty or inconvenience has no just foundation.
Without further considering exceptions to the general rule, I am of opinion that the rule itself may be so particularized as to become universal in its application. By requiring all persons interested in the matter involved in the-issue, and necessarily to be affected by the decree, to be brought before the Court, the rights of all parties could be adjusted, and a complete definitive decree made upon the matters in question. Let us inquire whether the rule as thus particularized, embraces the case we are considering.* The hank of Darien is the plaintiff at law, and the bill of the appellant is exhibited with the view of defending himself against its actions: the bank then is an essential party,
In my judgment, the branch bank could in no event, be made a defendant as such, though no discovery could be had from the parent institution, unless it was incorporated; it does not appear from the bill that it was a corporation, but it would rather seem that it was an office of discount and deposite, established by the bank under the authority of its charter, for the purpose of extending and facilitating its operations. This supposition is strengthened from the circumstance, that the notes oí J. & W. Lucas were sued on in the name of the bank, and before the officers of the branch could, have been riiade parties, the appellant should have shewn that it was necessary, in order to an adjustment of his rights. No necessity appears from the record, it may therefore be fairly presumed that the bank itself was the only essential party, and that the books and papers of its branch were subject to its examination and control.
Although an essential party were not before the Court, if the equity of the case was with the appellant, a dismissal of the bill generally, would not be the proper decree. The Court should decree that the bill stand over for parties, or have dismissed it without prejudice.
Many points were raised in argument, on which the ulterior progress of the cause at law cannot require an expression of opinion. Others are dependant upon those considered, and fully ánswered by the view taken of them. ^ have expressed an opinion upon some topics which I might have forborne to notice, but as they were discussed, anc^are Presente(l by the record, I deemed it proper to examine them with a view to settle the rules of practice upon the points they embrace; I have been more elaborate than I could have wished, but as the case is in many respects res integra in this Court, it is proper that argument and illustration should be employed that it may appear by what reasoning my opinion is sustained, and that a test may, to some extent, be afforded for the ascertainment of its legal correctness. It remains only to declare that in my opinion, the decree of the Court below should be affirmed with costs.
The decree of dismissal is assigned for error, and this brings the whole equity of the bill to the consideration of the Court; and from the best examination that I have been enabled to give it, I cannot perceive any sufficient ground for retaining the bill. This bill seeks to transfer the jurisdiction of the suit at law to this Court, and to have the case finally decided here, and the suit at law perpetually injoined. The first question which arises is, whether the bill shews a right or title to relief in this Court. I am clearly of opinion it does not, and that the complainant cannot be relieved upon the facts stated in it; because the facts, if true, might be used at law. The complainant seeks to be relieved from the effect of the judgments obtained against him in the State of Georgia, and which are sought to be enforced in this State, upon the ground that he had no notice of the pendency of said suits in Georgia; or in .other words, that the Court rendering the judgments had no jurisdiction of his person. If a judgment of a sister State can be resisted upon the ground that the Court which rendered the judgment had no jurisdiction over the person of the defendant, it follows as an irresistible conclusion, that a Court of law is the proper tribunal to afford the relief sought in the complainant’s bill. The case in-4 Cowen’s Reports 292, is full upon this point. It is there decided by the Supreme Court of the State of New York, on a review of all the eases in which the conclusiveness of judgments of sister States was considered, that in an action upon a State judgment, it is competent for the defendant to show by a special plea, that the Court in which the judgment was rendered, had no jurisdiction either of the subject mattex-, or over the person of the defendant; that to give any binding effect to a judgment, it is essential that the Court should have jurisdiction over the person and of the subject matter; and that the want of jurisdiction is a matter that may always be set up against a judgment when sought to be enforced, or when any benefit is claimed under it; that the want of jurisdiction makes it utterly void and unavailable for any purpose; and that the party was not pi’ecluded from shewing that the judgment was fraudulently obtained, or that the Court had no jurisdiction- over his person; that the Constitution and laws of the United States, declaring that full faith and credit shall be given to the public acts, records, and judicial proceedings of the several States, by each State, only contemplated such as wore within the
The whole matter of the bill, as I conceive, being predicated upon the ground that the judgments were conclusive and irresistible in a Court of law. Having shewn, as I believe, that a Court of law would resist the conclusiveness of the judgments, and all the oiher matters charged in the bill being purely oflaw cognizance; the complainant’s bill Was therefore, properly dismissed.
In addition to the _ Very able opinions that have been delivered, I will subjoin ■a few suggestions, that to my mind are equally conclusive in favor of the decree. It is a rule that universally obtains, that he who seeks equity, must first do justice. If the complainant has, by his negligence, or by design, participated in practising a fraud, he should remain where the rigid rule of law had left him. There is much in the record before us, to induce the belief, that if the copartnership of J. & W. Lucas has ever in fact been dissolved, that it was a secret dissolution, intended to be used by the partners as their interest might prompt, whilst the community should be deluded by the impression that the firm still continued its mercantile operations. When we are required to believe, that a firm that had been extensively engaged in business, composed of men capable of wielding such weighty concerns, had secretly dissolved in good faith, our credulity is taxed to the utmost stretch. There can be no doubt, whatever may have been the intentions of the parties, that this secret dissolution cannot discharge the partners from any liability incurred by their firm. 'The complainant seeks to be relieved from the payment of debts contracted in the name of the firm Subsequent to this alleged dissolution. His negligence,
Decree affirmed.
Mallow v. Hind. 12 Wheat. 197.
Elmendorf v. Taylor. 10 Wheat. 167.
The Mechanics Bank of ’ Alexandria v. Louisa and Maria Siton, I Peters R. 306.
Newkirk v. Willet. 2 Caines Cas. in Err. 296.
Gelston v. Hoyt. 1 John. Ch. Rep. 547.
M'Intire v. Mancius. 3 John. Ch. Rep. 45.
6 John. Rep. 144.
3 Cowan 38.
See also Gow 305 to 311, and other authorities Olted.
2 Caines Rep. 254, 5. cases there cited, also 1 H. & M. 423. 19 John. Rep. 513. 3 Kents Com. 24.
3 Kent’s Com. 24.
Garard v. Basse, 1 Dallas' R. 119. 3 Kent's Com. 17, & references there given.
3 Coins' 20.
Pierson v. Hooker, 3 John. R. 68. Manhattan Co. v. Ledyard, 1 Caine’s R. 192. Note a.
Henderson v. Wild, 2 Campbell, 561.2 Caine’s Rep. 254. Note a.
Laws of Alabama, 454.
1 Chit, PI. 542.
Le Conte v. Pendleton, 1 John. Cas. 104. See 1 Chit. 542 n. 107.
ib. 545.
Livingston v. Gibbons, 5 John. Ch. Rep. 256.
2 H. & M. 391. 1 Peters U. S. Rep. 146.
Martin v. Sarles, 4 Cowenn, 24.
Dan v. Brown, ibid. 492. vuie the other authorthf/point!.
Wash. Kep. 224.
Paynes v. Coles,1 Munf. 205.
2 John. Ch, Rep. 62.
13 Vesey 47.
Note A. si.
7 Vesey 587.
Woodcock v. Bennet, 1 Cowen 711 and see note A. 744.
Vide 7 John. Ch. Rep. 223 1 Bibb 277.
2 Wheat 380.
1 Caines 461.
15 John. R. 141.
2 Com. 91.
19 John. R. 162.
7 Cranch, 481.
4 Cowen 292.
9 Mass. Rep. 467.
In the case Biddle v. Wilkins, 1 Peters’ U. S. Rep. 686.
In the case Elliott et al. v. Piersol et al. 1 Peters' U. S. R. 340.
Simpson v. J. Hart, 1 John. Ch. R. 91.
Dodge v. Strong, 2 John. Ch. R. 228.
Penny v. Martin, 4 John. Ch. R. 566.
Foster v. Wood, 6 John. Ch. R. 87.
1 John. Ch. Rep. 547. 2 John. Ch. Rep. 45. 2 Caines’ Cases in Error 296.
7 Cranch 431.
15 John. R. 141.
19 j0lm. E. 162.
9 Mass. B. 467.
Cowen 292,
ante p. 124
2 J ohn. R. 300.
1 M’Cord, 16.
3 Day’s Rep. 353, and 6 John. R. 147.
Peake’s Cases, p. 42.
2 Chitty’s Rep. 121.
Nicholson, v. Bowens, 3 Price, 263, & Devenyhouse v. Graham, Ibid, 266. n.
Gow on Partnership, Appendix, 483.
Hills v. Ross, 3 Dal. 331. (Dicta of Iredell & Chase, Justices.
Harrison v, Jackson, 7 T. R. 108, dictum of Dam-pier, in argument, and Gow, in his late Treatise on Partnership, so lays down the law.
1 Dali. 269.
Laws of Ala ama, .
4 Binnev, 375.
19 John. 537,
3 Aik. 294. Ib. 392, 650. 2 Atk. 242,
PaleyonAgeficy, 20j.
1 John. Ch. It. 65.4 John. Ch. R. 205, & the English decisions there reviewed by the Chancellor.
X P.Wms. 593.2 John. Ch. Rep. 245.
Mitford’s anTlái1.40"6 2 Atk. 51-510 1 John. Ch. R. 437 & 349. ?Cranch 8t!' 1 Peters’ U. 12 Wheaton 193.