75 P. 550 | Kan. | 1904
The opinion of the court was delivered by
William G. Mayer sued Reuben M. Manley, as executor of the will of George Manley, deceased, under the provisions of sections 1200 and 1204
"An executor or administrator duly appointed in any other state or country may sue or be sued in any court in this state, in his capacity of executor or administrator, in like manner and under like restrictions as a non-resident may sue or be sued.”
So far as it relates to the interpretation of the
It is urged that under the construction given it the statute conflicts with section 17 of the Kansas bill of rights, with section 2 of article 4 of the federal constitution ,' and with the fourteenth amendment to it, in that it makes a distinction between citizens of Kansas and those of other states, denying to the latter privileges and immunities of the former, and depriving them of property without due process of law. The statute is an unusual one. It originated in this state at the time of the revision of 1868, when the chapter regarding executors and administrators was adopted from Ohio. The corresponding section there (Rev. Stat. Ohio, 1860, vol. 1, ch. 43, §236) provided only for suits by, not against, foreign executors and administrators. It was transplanted with only so much change of language as authorized them to be sued, as well as to sue, “in like manner and .under like restrictions as a non-resident. ’ ’
If any similar provision-exists elsewhere, its validity seems not to have been drawn in question. The territory of Washington formerly had a statute expressly
“There seems to be no doubt that a state is not re-' strained by the national constitution from authorizing suits to be brought in its courts against foreign execj. utors and administrators; and that service of process, by attachment of property within its jurisdiction, and notice by publication to the non-resident foreign executor or administrator, in accordance with the local statute, will confer jurisdiction over such property and will justify its sale upon execution.- . . ■ . Such statutes seem to be eminently just and proper. They afford an éasy means of preventing the withdrawal of local assets before the claims of local ci’edit-ors have been satisfied. Local creditors can protect themselves by the simple process of attachment and publication. Their constitutionality seems clear. Such state- process is not contrary to due process of law, as against the defendant’s title to the property attached, even if he does not appear in the proceedings ; for the preliminary attachment and publication subject the property to the control and jurisdiction of the court, which is therefore authorized, upon due proof of the plaintiff’s claim, to order its sale, and thereby to divest the title of the non-resident defendant.”
In Manley v. Park, 62 Kan. 553, 64 Pac. 28, the question of the constitutionality of the statute was discussed to some extent, but not definitely passed
The claim is made that the statute discriminates against the non-resident executor in three ways : (1) In permitting suit to be brought against him in the district court, whereas resident executors can only be sued in the probate court; (2) in permitting specific assets under his control to be segregated for the ben-fit of a particular creditor, whereas resident executors are allowed to apportion the proceeds of the property equitably among all the creditors; (3) in permitting him to be sued in attachment, upon no other ground than that he is a non-resident. The first contention is unsound in fact. The resident executor, like the nonresident, may be sued in the district court. (Gen. Stat. 1901, §2891.) The second contention seems based upon solicitude for the rights of other creditors rather than for those of the executor. Non-resident creditors are afforded the same privilege of attachment as resident. Whether in a controversy between two attaching creditors the ordinary rules of priority would be affected by the consideration that the property was a part of the estate of a decedent is not a matter tQ be inquired into at the instigation of the executor. The only issue as to him relates to cutting off his title and subjecting the property to the payment of the debts sued on, if found to be valid. In Tennessee an attachment may be had “where any person liable for any debt or demand, residing out of the state, dies, leaving property in the state.” (Code' 1896, § 5211.)
“The statute was intended to afford the creditor a simple and speedy remedy for the collection of his debt where administration was not granted — too expensive or unnecessary — but was not intended to provide ' a method by which one creditor might by diligence obtain priority. In cases where there are no other creditors, or where none intervened, and no insolvency exists or is suggested, and proper defense interposed, before the final appropriation of property attached, the statute would operate for effectual relief of the attaching creditor alone.”
The reason for the rule that an executor cannot (without statutory authority) sue in a foreign jurisdiction is said to be “ the protection of local creditors who might be injured by permitting the withdrawal of the assets and compelling them to resort to a foreign jurisdiction to obtain satisfaction of their claims.” (13 A. & E. Encycl. of L., 2d ed., 948.)
“That this is the ground on which the rule is enforced is shown by the cases on ancillary administration, which uniformly hold that the duty of the- ancillary administrator here is -to account to domestic creditors, and, after they are satisfied, to pay over the balance to the primary or domiciliary administrator.” (Laughlin & McManus, Appellant, v. Solomon, 180 Pa. St. 177, 36 Atl. 704, 57 Am. St. Rep. 633.)
“Every sovereign has his own code of administration, varying to infinity as to the order of paying debts ; and almost without an exception, asserting the right to be himself first paid out of the assets.” (Smith, Administrator, v. Union Bank of Georgetown, 5 Pet. 518, 526, 8 L. Ed. 212.)
“By the administration law, foreign executors and administrators may sue and be sued in .this state, like those of our own appointment; thereby, in most cases, making it unnecessary that any ancillary administra
The Ohio statute referred tó, relating to ancillary-administration, provided:
“The proceeds of such assets shall be applied to the payment of the debts which shall be proved against such estate before such administrator, . . . and the surplus, if any, shall be paid into the court granting such administration for the benefit of the estate of ■such decedent; in the state where the decedent resided at the time of his death.” (1 S. & C. Stat. 1860, ch. 43, § 260.)
“A judgment against an administrator is, in legal effect, an adjudication subjecting the assets within the jurisdiction of the court to the satisfaction of the clai.m in suit.” (Burton v. Williams, 68 Neb. 431, 88 N. W. 765.)
“ It is a settled rule of law of this state that a domestic creditor of a non-resident decedent will not be compelled to go to a foreign jurisdiction if there be property here -which can be applied to the satisfaction of his claim. We, therefore, assume the right to administer the property here for the benefit of domestic creditors, and to impress upon it a lien or trust for their benefit.” (Montgomery v. Boyd, 78 Hun, App. Div. 64, 72, 79 N. Y. Supp. 879, 885.)
These citations and quotations sufficiently show the general acceptance of the doctrine that it is competent for the legislature by appropriate action to subject such property of a decedent as is located within the state to the payment of creditors who see fit to resort to the courts of that state. This, so far as relates to the complaints here made, is all that the statute under discussion attempts. The particular legal machinery by which this result is accomplished is not a matter of concern to the foreign administrator. “It was obviously not a right, privilege or immunity
With regard to the third contention, that it is an unlawful discrimination to allow an attachment to issue against a iron-resident and not against a resident executor, no reason is perceived (other than those already considered) for distinguishing this question from that arising upon the usual statute authorizing the attachment of the property of a non-resident for the very reason that he is a non-resident. In.either case the proceeding is in fact a mere device for obtaining jurisdiction of the property for the purpose of applying it to the payment of debts, there being no way by which personal- jurisdiction of the non-resident may be obtained. (Dillon v. Heller, 39 Kan. 599, 18 Pac. 693.)
“No one ever dreamed that the attachment laws of the several states, authorizing attachments against non-resident defendants, were violative of the constitution of the United States." (The Pyrolusite Manganese Company v. Ward, 73 Ga. 491.)
“The constitutional provisions are not violated by a statute which allows process by attachment against a debtor not a resident of the state, notwithstanding such process is not admissible against a resident." (Cool. Const. Lim., 7th ed., 574.)
In Central Loan and Trust Co. v. Campbell, 173 U. S. 84, 97, 19 Sup. Ct. 346, 43 L. Ed. 623, it was said:
“The only remaining contention to-be considered is the claim that the territorial statute authorizing the issue of an attachment against the property of a nonresident defendant in the case of an alleged fraudulent disposition of property is repugnant to the fourteenth
It is not true that the new matter had no relation to the subject of the dissolution of the corporation. If the new conditions prescribed as authorizing a suit against the stockholders had in fact no relation to the matter of the dissolution of the corporation, and the legislature had sought arbitrarily to classify corporations' as dissolved under circumstances manifestly not justifying such a term, a very different question would be presented. But there is no impropriety in calling a corporation dissolved when it has ceased for á year to do the business for which it was created. Nor is there anything inconsistent in providing that
It is further objected that the action will not support an attachment because not founded on contract. It has repeatedly been held, however, that the liability sued upon is contractual. It is also claimed that the bonds of the corporation that formed the basis of the suit were void because not authorized by its charter. They purported to be issued for existing obligations of the company and were certainly not void upon their face. Complaint is also made that the trial court permitted plaintiff to introduce in evidence a pleading filed by defendant in another action in which certain facts were admitted for the purpose of such action only. If this was error it was not material, since the trial was had without a jury, and there was competent evidence upon the only issue affected sufficient to support the finding of the court.
The objections so far considered relate to the right of plaintiff to maintain the action at all, and upon all such objections our holding is against the plaintiff in error. But other questions are presented relating to the amount of recovery and to matters which defendant claimed should limit the total amount of his liability to corporate creditors. The most important of these concerns a judgment held by him against the corporation, which was first allowed, bub afterward disallowed by the trial court, as a limitation upon his liability. The judgment was rendered upon confession and the objections made to it are three : (1) That the statute relating to. judgments by confession was not complied with and the judgment was therefore a nullity ; (2) that it was rendered in favor of an executor upon a confession made by an officer assuming to act for the corporation, who as an individual was
■ “Sac. 402. Any person indebted, or against whom a cause of action exists, may personally appear in a court of competent jurisdiction, and with the assent of the creditor or person having such cause of action, confess judgment therefor ; whereupon judgment shall be entered accordingly.
“Sec. 403. Judgments may be entered upon confession by an attorney authorized for that purpose by a warrant of attorney, acknowledged or proved as conveyances of land, without any previous process or proceeding; and judgments so entered shall be a lien from the date of entry.
“Sec. 404. The debt or cause of action shall be briefly stated in the judgment, or in writing, to be filed as pleadings in other actions.
. “Sec. 405. Before any judgment shall be entered by confession, an affidavit of the defendant must be filed, stating concisely the facts on which the indebted ness arose, and that the amount of such indebtedness is justly due and owing by the defendant to the plaintiff.”
The proceeding in question was had under the first section quoted, without the use of a warrant of attorney. ' It is objected that a corporation cannot personally appear, within the meaning of this section, ánd that if it can the vice-president or presiding
It is to be borne in mind throughout this discussion that the attack upon the judgment is not only collateral — it is made by one occupying no more advantageous ground than the defendant itself. As between the parties a judgment by confession may be good, notwithstanding a* failure to comply fully with the statute. (Smith v. The State, 64 Kan. 780, 68 Pac. 641, and cases cited; also, U. P. Railway Co. v. McCarty, 8 Kan. 125.) If this judgment was a valid claim against the corporation no reason is apparent, in the absence of any charge of fraud, why its owner might not interpose it in reduction of his liability as
The subject of the dormancy and revivor of judgments has given rise to much discussion and disagreement. The decisions in this state have departed radically from the law as construed elsewhere' even under similar statutes. Section 425 of our code (Gen. Stat. 1901, § 4875) provides that on the death of a party to an action it may be revived in the name of his representative, but only if the order therefor is made within a year (Code, §433; Gen. Stat. 1901, § 4883) ; that if a judgment becomes dormant it may be revived in the ■ same manner (Code, §440; Gen. Stat. 1901, §4890) ; that if either party to a judgment dies his representative may be made a party to it in the same manner as is prescribed for reviving actions (Code, § 439 ; Gen. Stat. 1901, § 4889). This last proceeding is not in so many
The analogy between the situation arising upon the death of a party to a judgment and the condition ordinarily known as dormancy must be determined in the light of the construction already given these statutes by this court. It is not clear whether the word “dormant,” as applied to judgments, had originally or has ordinarily a well-defined technical meaning, but here it has by repeated use been given a definition broad enough to cover j udgments that have not wholly lost their vitality, but which cannot support an exe1-
“The judgment then ceased to be a judgment against any living person, but it did not become a nullity; it was still a judgment in a limited sense. It was a judgment in abeyance, a dormant judgment.”
In Ashmore v. McDonnell, 16 Pac. (Kan.) 687, 690, the term was applied to a judgment against one afterward sentenced to the penitentiary for life, and therefore civilly dead. It was said :
“This conviction deprived the plaintiff of all civil rights, and, before anexecution could be issued thereon, this judgment would have tobe revived. Commissioners, etc., v. Lawrence, 29 Kan. 158. This not having been done, the execution was issued upon a dormant judgment, and was of no validity.”
This language was omitted from the final opinion as officially published (39 Kan. 669), but only in view of new facts developed, not because the statement of law was doubted. It was quoted with approval in Seeley v. Johnson, 61 Kan. 337, 59 Pac. 631, where it was also said (page 339) : “Upon the death of the plaintiff in the judgment at bar it became dormant.” In Mawhinney v.Doane, 40 Kan. 676, 680, 17 Pac. 44, 48, it was said :
“The judgment sued on is dormant, and the time has expired within which it can be revived. This dormancy was created by the death of Sarah F. Mawhin-ney.”
These cases sufficiently illustrate the proposition stated that, whatever may be the rule elsewhere, in Kansas the death of a party renders a judgment dormant within the meaning of the statute. When a judgment, dormant because of the lapse of five years
"We think this view harmonizes with all the actual decisions that have heretofore been made by this court, and with the language used in support of them, except in part in the case of Halsey v. Van Vliet, 27 Kan. 474. There the only question before the court was whether, under the facts of that case, the judgment involved was a lien on certain real estate, and it was decided that it was not. The judgment was rendered February 18, 1873. On April 18, 1873, the defendant conveyed the land in question to a third party. On April 28, 1873, the defendant died, and on May 19, 1873, an administrator was appointed. On October 11, 1875, by the consent of the administrator, the judgment was revived. Since the judgment could at that time be revived only by consent, it is obvious, under the authority of Schmucker v. Sibert, 18 Kan. 104, 26 Am. Rep. 760, that it could -not be made a lien on the land without the consent of the owner; the consent of the representative .of the defendant, who had parted with,the title, was not suffi-
“The writer believes that so far as affects .the question of keeping alive the judgment, those executions cannotbe considered nullities. While doubtful whether a sale under them could be upheld, even when collaterally attacked, and conceding that such a sale would be voidable and would be set aside upon a motion or other direct proceeding, he holds that this result follows alone from the fact that thex’e is no party defendant in being whose property can be seized. He believes that the principle upon which the issue of an execution keeps alive a judgment is, that thereby the plaintiff affirms its vitality, and that this principle is enforced whenever the plaintiff comes into court and causes an execution to be issued and placed in the -hands of an officer, and that it is immaterial whether the defendant then has any property upon which the process may be levied, or whether by the death of the defendant there be any party in being against whom the process may lawfully run. It is in either case equally an assertion by the plaintiff that the judgment is unpaid, and that he is intending at some time and in some way to enforce its collection.” (Page 481.)
The court held this reasoning to be inapplicable for the reason that the executions were absolute nul-lities and that “when an execution is void the causing it to issue cannot be regarded as a proceeding in good faith to collect the judgment.” A valid order of re-vivor, on the contrary, is the highest form of affirmance that the judgment is unpaid, since it amounts to a judicial determination to that effect at the instance of plaintiff and upon notice to defendant. We hold that the judgment was not dormant at the time the answer was filed.
It is-further argued that the revivor was void because made upon only five days’ notice. The statute
Two other demands of the defendant against the corporation were disallowed by the trial court. . It is said by plaintiff in error that this was becahse they had outlawed between the time of the filing of the petition and the filing of the answer, and the question is argued at length whether, for the purposes here involved, the commencement of this action should be .deemed to stop the running of the statute of limitations against these claims. It is at least doubtful whether plaintiff was in a situation to avail himself of this consideration. However, neither of these questions needs to be determined. It appears that the claims were based upon guaranties made by the corporation, its obligation being secondary, and there is no such showing of diligence exercised against the principal obligor as to charge it absolutely. On the contrary, the negligence shown seems such as to discharge the corporation altogether. The ruling of the trial court in disregarding these claims is approved, not because action upon them against the corporation was barred, but because it was not shown that a cause of action upon them ever accrued against it.
The conclusions here reached will not affect the' final judgment in this particular case, which is one of a series of the same character, but the additional deduction to be allowed defendant will diminish his total liability, and require the reversal of one of the judgments and the modification of another.
This judgment is accordingly affirmed.