82 Tenn. 596 | Tenn. | 1885
delivered the opinion of the court.
On the 10th of June, 1868, Sarah W. Bolton, executrix of Washington Bolton, filed her bill in the chancery court at Memphis, against Wade H. Bolton and Thomas Dickens, with F. M. Cash, administrator of Isaac Bolton, for a general account of a partnership that had existed from 1850, extended two years in June, 1857, between her husband, Washington Bolton, and the two living defendants and the intestate of the other. Wade H. Bolton', after answering the bill, was killed in July, 1869, and the suit was revived and prosecuted against his executor, E. M. Ap-person, and the other parties, when in 1870, Dickens was killed, and his representative made a party. Such proceedings were had in this case that in 1880, by a decree of this court, the bill was dismissed and the suit finally terminated by a decree to this effect.
That decree was based on two propositions, each of great weight and probably controlling, at any rate when combined, certainly determinative of the case, on settled principles of law. First, that the books exhibited as showing the transaction of the branch houses at Lexington, Kentucky, and Vicksburg, Mississippi, were of such an incomplete character, so unsatisfactory, as to furnish no basis for a settlement of the transactions they referred to. After referring to the frag
The second ground on which the court acted was the lapse of time after the dissolution of the partnership, the fact that all the parties were dead, and that each, after the dissolution, “had seemingly been satisfied with his share of the whole, which the end of the partnership in June, 1857, left in his hands, retired or engaged in other occupations, and no step was taken until about eleven years after the expiration of the partnership towards having a settlement. It was therefore concluded, that “if any one or more of the partners are subjected to loss, it results from their own negligence,” but it is manifest, says the Chief Justice, “that a court of chancery cannot reach any settlement in this case which might not be even more unjust than to leave -the parties where they have placed themselves by their own laches.”
In this state of the case, on February 1, 1883, the present bill was filed, claiming to be an “original billj to impeach this decree for fraud, and in the na
This bill, after stating the fact of the filing of the original bill, that its purpose was a settlement of the partnership matters of the late firm of Bolton, Dickens & Co., in the negro trade and cotton business; that the same proceeded to a hearing upon bill and answers of all the parties and proof, and was decided in the Supreme Court on May 20, 1880, the bill dismissed, each party being taxed with one-fourth of the .costs.
The ground of the decision in that case is stated to have been, that the loss of papers, etc., involved the transaction in such obscurity that a settlement -would fall short of reaching the truth and doing
The substance of the charges of the original bill are then set out, charging that very large profits had’ been made, and that one of the partners had shortly before the termination of the partnership, killed one ■McMillan, and was tried for the offense, and the reason there had been no settlement of the business in the lifetime of the parties was, that Wade Bolton and Isaac, being brothers, insisted that the expenses of this litigation should be paid out of the firm assets, to which the other - partners demurred.
It was further charged that the center of business was in Memphis, but large purchases of slaves were made by Dickens from Bichmond, Virginia, and Isaac Bolton, at Vicksburg, Mississippi, who sold them; that the funds, capital and profits accumulated in the hands of Wade Bolton, at Memphis, who was the book-keeper and cashier of the firm, charging fraud and unfair dealing upon the part of said Wade. These allegations were, as alleged, the basis on which the account was sought.
The administrator in the present bill now charges, that while the book of the husband of the complainant was filed, showing the purchases in 1855-6-7, she was unable to get at or produce the books kept by Wade H. Bolton, at Memphis, and was thus left to secondary evidence on that portion of the account. It is ‘insisted the proof showed in that case that about
It is then charged, in general terms, that Wade H. Bolton had on hand large amounts of firm assets, in money, notes, drafts, and while the suit was pending, had evidences of the disposition of these assets which he withheld from the court, and that there were papers in the form of “ bills and drafts in the hands of Wade H. Bolton, which he unlawfully suppressed, which, as cashier and bookkeeper, would have made the right of relief plain, and these were suppressed.”
It is then charged, that since the final decree, newly discovered testimony has been found, necessary in that cause, which was fraudulently suppressed and withheld, and which would have made a material dif-' ferenee in the state of the record; and enabled the court to reach a different conclusion.
Somewhat in detail this charge is extended in after parts of the bill, the substance being that Wade H. Bolton, at the time of the suit, had large amounts of the drafts of the firm in his possession drawn by himself, which he had partly destroyed to prevent complainant from getting at them, and these drafts would have shown' the state of the firm account, and that his plan of defense was to suppress and obscure the evidence so as to prevent the -court being furnished with the basis on which an account could be taken, on the basis of the fraudulent suppression of papers, and that he has now learned he can prove-the fact from the deposition of E. M. Apperson, from which he quotes the following: ,“I have no hesitancy-
It is then charged there is no other way to get at this proof except by a discovery from E. M. Ap-person, the executor of Wade Bolton, and further, that they verily believe that the bills of sale of all negroes (required by articles of partnership, with the exception of those retained), may be in the hands of said Apperson, together with other papers on which the account can readily be taken and the rights of the parties be adjusted. On this basis a discovery of. all he may know is asked of E. M. Apperson, in •order to develop the proof assumed to have been fraudulently suppressed, and now claimed to have been newly discovered.
This bill was demurred to on many grounds, and demurrer overruled. In the first aspect .of the case, as a bill to set aside the decree for fraud, we notice the questions thus raised by the demurrer, and also on the facts. They are, or part of them, substantially, that the bill does not set out the new testimony assumed to be suppressed, so that the court can .judge whether, if made, it would have changed the ■result in the original case, nor any sufficient reason why Bolton or Apperson were not compelled to file ■ any papers they had,, or as witnesses to disclose any
It is also objected that the discovery from E. M. Apperson might as well have been had in the original case as in the present proceeding, or he might have been used as a witness. 'Without stating in detail the specific points raised by the demurrer, it suffices to say, that any legal defense probably that could be. interposed is found in this record. We proceed to dispose of the questions deemed by us vital to the determination of the cause. In doing so we may treat both the questions presented on demurrer, and the questions on the facts together, so far as the present aspect of the case is concerned.
The case is this: After a long and hotly contested litigation, lasting years, the matter is ended by a final decree in this court. Immense volumes of testimony had been accumulated, and the energies of the ablest counsel exerted on both sides to develop all the facts possible. At the end of it, it was found by this court, no sufficient evidence had been presented on which an account doing justice to the parties could be had, and that the parties seeking the account had for eleven years slept on their rights, the original parties all dead, and so the bill was dismissed.
Under these circumstances the maxim of our jurisprudence that there should be an end to litigation, as well as all the traditions of the law, in favor of the conclusive effect of judgment once had, demanded that a very strong and clear case be made out, both by
But it is settled law that the jurisdiction of that court is complete to set aside decrees obtained by fraud on an original bill filed for that purpose: Ibid, 486-7; Walker v. Day & Griswold, 8 Baxt., 82. Such a bill “must state the decree and the proceedings which lead to it, with the circumstances' of fraud on which it is impeached,” with an appropriate prayer for relief: Adams Doet. Eq., margin, page 420.
But to entitle a party to this relief from a judgment or decree, it must be made evident that he had a defense on the merits, or we may add, in case of the complainant, a right to the relief sought, and that such defense or right has been lost to him without such loss being attributable to his own omission, neglect or default. The loss of a defense, or the failure to obtain relief, to justify a court of equity in setting aside the judgment or decree, must in all cases be occasioned by the fraud or act of the prevailing party, or by mistake or accident on the part of the losing party, unmixed with any fault on his part or his agents: Freeman on J., secs. 486, 437, 489.
We have taken these rules from Mr. Freeman’s work on Judgments, as the fair result of the authorities and general principles established by them.
The charges are substantially that Wade H. Bolton’s plan of defense was to suppress the evidence in his possession, and the only fact alleged as a suppression on his part is the destruction or suppression of a large amount of drafts drawn by himself, which, it is said, if they had been produced would have changed the result. In addition, however, it is generally charged that he had in his possession papers that would have shown a different state of things from what was developed. But except the charge of destruction of drafts, we have no fact from which we can see complainant has any basis for his charge.
But take it as true that drafts in his possession had been destroyed, it needs only to look at the grounds on which the case was decided in this court to see that the result could not in the slightest degree have been changed. It was, that there was no satisfactory evidence at all furnished by the books then presented, or testimony as to the firm transactions at Vicksburg and Lexington, and none, we may add, as to the other parties in Richmond. It was charged, as we see in the original bill, that one hundred thousand dollars was made by Isaac Bolton in Vicksburg alone in the year 1856. But to confine ourselves to the allegations of the bill, it is impossible to see how
The able counsel of complainant' in their zeal evidently go upon the assumption that in odium of spoliation the court would have made an arbitrary adjustment regardless of what should otherwise have been developed in a general account. No such principle can be judicially recognized. Courts of equity do not sit to visit penalties, but to adjust the rights of parties.
But when we come to look at the proof developed-
But when we look to what is shown in the other case, and strongly intimated in the opinion of the Chief Justice, that the complainant’s testator, Washington Bolton, had concealed and withheld the books showing his transactions at Lexington, and the books
But it is ingeniously argued that it was the duty of Bolton to have revealed the state of the firm business under his control in his answer, and to have filed all papers in possession or furnished them to complainant in the original case, and because of his alleged failure so to do, that he should have this decree annulled and a decree now rendered against him, at any rate, for an account.
We need but say, in so far as his answer is concerned, or the production of papers and books, that under the charges of the original bill, together with the fact that his answer on oath was expressly waived, he was not bound to make any disclosures at all.
In the first place it was distinctly intimated that
In this view, the original books having been burned, in fact, and the proof now only developing the fact that he had a memorandum book — made out by whom we do not know — but one that he claimed showed substantially, as Mr. Apperson remembers, the result of his books at Memphis, if he had tendered such a memorandum, or any thing purporting to be a statement from the books, he would have done precisely what complainants charged he might do, and such a book thus discredited in advance^ he was not bound to present. It would have been folly in him to have done so.
But had it been presented, and shown a balance in his favor, it would have been rejected as evidence at once. Why should he present such evidence, when nothing he would say in explanation of it would be of any weight, as the complainant had refused to allow him to make a discovery under oath on 'this subject? In fact, he might have contented himself by filing an answer denying or putting in issue any charge in the bill, thus putting complainant to the proof of her case. If he had filed an elaborate answer, presenting any paper he - had, as far as he was concerned, the complainant had by the form of the pleading, only given
But assume that what Mr. Apperson has proven or stated would have been sufficient to have charged him as assumed by complainant, the old difficulty occurs. You «would only have had a showing of what the books are supposed to have shown at Memphis, but what had been done at Vicksburg and Lexington would not have been accounted for, and until this was done, there could not be an account of the partnership, as was held by this court in the original case. We see from letters now filed, that Wade Bolton claimed very large sums were to be accounted for by Dickens and Washington Bolton, 'and pressingly urges them to meet him for a settlement, which they seem as persistently to have avoided. That they retired, and went into other pursuits and made no settlement, nor brought any suit for an account of the partnership, is totally inconsistent with the view now pressed— that they believed immense sums would be due them on such a settlement. The record shows them to have been men who dared to assert their .rights, and who were not likely to have slept on them.
But under another principle which we have cited, that the failure in the case must not be attributable to the omission, neglect or default of the complaining party, the result would probably have been the same. Mr. Apperson is the witness now ’ on whose testimony the entire case of complainant rests. He was in Mem
We might add other considerations of weight in ■support of the views expressed, but deem what we
So far as Mr. Apperson, as executor, was concerned, he took the place by revivor of his testator. He undertook to, and was sworn to, execute the will of his testator. The most pervading purpose found in that paper is that the suit shall be defeated. He was not called on to answer any thing, the answer having been made by his testator some six months before his death.
We need not go into the casuistry of the question as to whether he should have furnished testimony, as far as he had it, to the other side without being called on. But that any legal duty rested upon him so to do is a matter of easy solution. No such thing was required, nor was it expected by the other side, nor did they have the slightest cause of complaint if it was not done. He was in the jurisdiction of the court, amenable to its process, and if his testimony was wanted, he had only to be summoned, and examined on oath as other witnesses.
Mr. Perry states the rule, the result of the cases which have considered this question. It is: (<If a trustee obtains a knowledge of facts that would defeat the title of his cestui que trust, and give the property over to another, he is not justified in morals in communicating such facts to such other person.' His duty is to manage the property for his cestui que trust, and not to keep his conscience, or betray his
In reply to ■ the ingenious argument of counsel, that if a private settlement had been sought between these partners, it would have been the duty of Wade Bolton to have presented his books and papers fully for that purpose, and therefore in a court of equity the same measure of duty rested upon him in this case, in his answer, we need but say, that even on such a settlement, if the party had been told that only his original entries would be received, and they discredited by reserving the right to show them false, and that he was expected to present false abstracts of them instead of the originals, and thus seek an advantage, and that no such abstracts would receive any credence, it could hardly be claimed that the failure
We have not rested our conclusion on this point on the ground assumed by the learned chancellor who tried this case, of the distinction between extrinsic and intrinsic fraud, that is fraud upon the party by reason of something done outside of the main case, by which the other party was prevented from presenting his case to the court, as collusion with his attorney, or preventing the party' from obtaining testimony by a false statement to him, or the like; or, as in the case of United States v. Throckmorton, 8 Otto, 65, et seq., by presenting forged documents or evidences of title. While the principle may be sound, if carefully applied, that the court would not, after a great length of time (in that case twenty years), reopen the case on such proof, we would not feel willing to say that the fact that 'the fraud was intrinsic rather than extrinsic, if these words have in them any definite distinction, should be laid down as the unvarying rule by this court. It may be, and is no doubt a sound general rule, that where the very question involved in the former litigation was a charge of the very fraud again sought to be investigated, and that issue was determined, no court ought readily to allow that question again to be litigated, especially after a great lapse of' time. But to say that in every case this rule should be held a conclusive bar to a reinvestigation, dr in a case where it could clearly and by the most- conclusive and' unmis
Nor is the soundness of the distinction seen between fraud preventing a party asserting his right “by preventing a party from fully exhibiting his case,, or by keeping him away from court, a false promise of compromise, or where defendant never had knowledge of the suit, being kept in ignorance by the act of the other party, or when, an attorney fraudulently connives at his defeat, or corruptly sells out his client’s-interest, which, in the language of Judge Miller in the case in 8 Otto, 65, 66, are proper cases for relief; and the other class of cases where the party defeats the right by suppression o.r concealment of testimony which he was bound to discover, or 'which the other party could and would have certainly had,, had it not been for the fraudulent devices of his opponent. In both cases the fraud and wrong of the party has simply defeated the right sought to be asserted; each is equally effective on the result, each equally reprehensible, and the one should be relieved against as readily as the other, the only difference probably being that courts should require the strong
We now proceed to dispose of the other aspect of the case, as a bill of review for newly discovered testimony. We pass for the present at least the preliminary question, whether such a bill will lie in a court of chancery when the case has by appeal been brought to this court, and a final decree had. A few- principles, the result of the caution found by experience to be necessary to the ends of justice, as well as a sound public policy, and long recognized by our courts, will furnish the basis on which a proper conclusion can be reached on this phase of the case.
It is settled that a bill of review for newly discovered testimony is not matter of strict legal right, , but is in the sound discretion of the courts. Leave to file such a bill may properly be refused, although the facts, if admitted, would change the decree, where the court, looking to all the circumstances, shall deem it productive of mischief to innocent parties, or for other good pause appearing: Winchester v. Winchester, 1 Head, 460; Harris v. Edmondson, 3 Tenn. Ch. 214, and authorities cited. Nor will such a bill be allowed where it would be entirely fruitless: 3 Tenn. Ch., 215, citing Bennett v. Lee, 2 Atkins, 530; Thomas v. Harvie,
In view of these settled principles we notice the facts presented in this record. In the first place there is no definite allegation of facts discovered from which the court could see that they would have changed the result. The opinion of Mr. Apperson that he knew facts that would have done so is not such a statement as would meet the requirement •of the rule.
But conceding, for the sake of argument, that this might have been a sufficient basis on- which to file the bill with a prayer for discovery from him, then how 'would the case stand on the facts actually developed?
As to the money said to have been spent in the -McMillan trial, the present bill avers that the amount
The main matter developed by Apperson’s testimony, is the fact of large profits having been made by unfair ■dealing with the cotton of the firm. Assume this to he proven, the fact also is proven by Mr. Apperson, that he did not know, and had no idea of the amount “thus wrongfully used, and it is clear he is the only man now living who knows even this much; under this state of facts, an account even of this matter would yield no results on which a decree could be based. In addition, as we have shown, and as was formerly ■adjudged, there is absolutely no means of showing the state of the general account of the firm outside of this, and no account can properly be had without this.
Again, it appears from the papers now presented and delivered into court, on demand of complainant, that Wade H. Bolton was most earnestly pressing upon complainant’s intestate for a settlement of the partnership affairs; that he had proposed to meet them prepared for this purpose, when all parties were alive,, and they had agreed to meet him but failed to do so; that he had charged him with wrongful appropriation of thirty or forty thousand dollars of the assets of the firm, and yet with all this, the other party refused or failed to meet him for a settlement and vindication of himself from these charges for years-
We need but add, that it would be more than •doubtful whether any court would undertake to take ■an account of a partnership so complicated as this, •upon the basis of the memory of one witness, as to what had been told him by one partner, many years after the conversation occurred, unsupported by writings, or any documentary evidence of the nstate of the accounts. Such a thing, we take it, has never been ■done in the history of equity jurisprudence.
Upon the whole case, we conclude, the application of the stern rules of law, too well established and too well 'grounded in reason and experience to be shaken, demands and compels us to repel the claim of complainant. Injustice may be done, but it is a misfortune incidental to all human transactions sometimes, but where we can certainly see it is impossible to do ¡affirmative and complete justice on the facts before us> or even approximate it, it is our plain duty, as was said by the Chief Justice it was proper to do in the original case, to let the parties remain where their own laches had placed them, aud to leave, as they
The result is the decree' of the chancellor dismissing the bill is affirmed with costs.