58 W. Va. 237 | W. Va. | 1905
Lead Opinion
This is a third appeal in the case of Nutter v. Brown, the history of which may be obtained by reference to 51 W. Va. 598 and 46 S. E. 375, where the dispositions made of the first and second appeals are reported. The decree from which the second appeal was taken directed the special receiver to pay over and deliver the proceeds of the property in controversy to the plaintiff, Cordelia Nutter, and the defendants, C. T. Arnett and J. M. Garrett, in the proportions in which they were entitled, one-half to Cordelia Nutter and one-fourth to each of the other two parties, and required the defendants, Beeson H. Brown, Henry K.. Smith and Gertrude Duncan, to pay to the plaintiff, Cordelia Nutter, her costs. But that decree reserved for future adjudication all questions relating to the compensation of the receiver and his costs and expenses, and also the question whether such costs and expenses should be taxed against the defendants as part of the costs in the cause. After the affirmation of said decree by this Court, the receiver filed his report in the court below, showing that he had received on account of the oil $14,052.42, had paid out on account of taxes $404.04, had paid a fee of $25.00 to the attorney of the receiver and retained his commission of five per cent, amounting to $702.62, making a total of $1,127.66, which deducted from the total receipts, left $12,924.76, which he had distributed to the parties entitled under the decree aforesaid; and the court confirmed his report and discharged him. Later, May 28, 1904, Cordelia Nutter, James M. Garrett and C. T. Arnett, out of whose funds said attorney’s fee and receiver’s compensation had been retained, applied to the court for a decree against Beeson H. Brown, one of the defendants, for said sums as part of their costs in the prosecution of their suit and such decree was entered for the sum of $723.62. From it Brown has obtained the present appeal.
The appeal is resisted on the ground that the decree is for costs only as to which no appeal lies. The appellate jurisdiction of this Court, -in cases pecuniary in their nature, is
This is true, however, of those cases only in which the awarding of costs is in the discretion of the court below. In refusing to take jurisdiction, the courts all say the reason for declining is that the case is one in which the trial court has discretion to award or refuse costs. In 3 Eng. Ruling Cases, 243, the rule on the subject is stated, as follows: “The general rule of the Court of Chancery — which is now
For the most part, cases in this country illustrating the principle upon which appeals from decrees for costs are entertained are those in which there has been a decree of payment out of a fund in court. Thus, in Temple v. Lawson, the plaintiff, in an interpleader suit, had obtained a decree for $200.00 as counsel fees to be taxed as part of his costs and the court, on appeal from that part of the decree alone, reversed the action of the lower court. In Trustees, v. Greenough, 105 U. S. 528, the appeal was from an allowance of more than sixty thousand dollars to an agent out of a trust fund which had been secured and preserved for the benefit of the parties who were entitled to it by his labor and expenditures. In Stuart v. Bulware, 133 U. S. 78, an appeal was entertained from a decree allowing a receiver, for his services and counsel fees paid by him, $6,500.00. In Grant v. Railway Co., 116 Cal. 71, an order fixing the compensation of a receiver and taxing it as costs in the action against all the jjarties and directing him to apply .toward its payment the balance of the fund remaining in his hands as such receiver, was held to be appealable, the court saying it was, in legal effect, a final judgment upon a collateral matter, arising out of the action, and appealable by any party interested in the fund. The same principle had been declared in the case of Grant v. Superior Court, 106 Cal. 324. In Railway Co. v. Jones, 33 Mich. 303, an appeal from a decree refusing-compensation was allowed to a receiver. The decree from which the appeal was taken was affirmed, but the case nevertheless shows an assertion of jurisdiction by the appellate court. It entertained the case and affirmed the order of the lower court, refusing compensation.
It is perfectly apparent that cases of this class involve something more than discretion. What is awarded consists not of fees and ordinary court expenses, easily ascertainable by reference to mere rules concerning costs. It involves judicial investigation and determination. The allowance toa receiver for his services or to an attorney or agent who has a lien upon a fund in court is to be determined by the value
What is here said respecting the want of discretion to disallow compensation to a receiver or trustee, when his title is free from infirmity and his conduct from reproach, and he has performed his duties and accounted for the fund, is not to be taken to mean that the chancellor acts wholly without discretion in such cases. As to the amount of such compensation he is not bound by the strict rules governing-contract obligations. It is to be determined upon equitable, not legal, principles. Much latitude is allowed him in the adoption of the rule by which it shall be fixed. It may be by a commission on the amount of the fund, a lump sum or a salary. Many cases say compensation to a receiver is in the sound discretion of the court and, therefore, subject to review. Among them is a decision of this Court in the case of Crumlish’s Adm'r v. Railroad Co., 40 W. Va. 627, holding as follows: “There is no fixed rule in this state as to the mode of allowing compensation to a special receiver, whether by way of commission or a fixed sum. Usually, when the fund is large, a lump sum is proper. The amount and mode of allowance are within the sound discretion of the court,
As to the power of the court to decree the extraordinary costs in favor of one party against another, not the ordinary costs usually incident to litigation, and the basis of its exercise, but little authority has been found. Practically all the cases reported deal with the propriety of the allowance to the receiver, trustee, or agent, out of the fund. As to these parties, as has been indicated, there is little room for the exercise of discretion, such as to prevent appellate review. The appellate courts deal with them freely. Some observations made in Cutter v. Pollock, 4 N. Dak. 205, 25 L. R. A. 377, are to the effect that a decree of such costs from one party to another may be made, but it may be doubted whether what is said there is to be considered as an adjudication, since the decree was reversed because the court failed to adjudicate anything in respect to such costs. The language referred to is as follows: “If the receiver is allowed to pay, and reimburse himself out of the moneys in
Concerning provisional allowance out of the fund, 2 Daniel’s Chy. Pr. p. 1410, says: “Where a party is entitled to his costs, but it has not been decided who ought ultimately to bear them, payment is often directed to be made out of a fund in Court, or by one of the parties to the proceedings, ‘without prejudice to the question how the same are ultimately to be borne.’ The absence, however, of these words, or words of a like meaning, from an order directing payment of costs out of a fund in Court, does not necessarily imply that the Court has decided that the fund out of which the costs are paid is that which must ultimately bear them; and costs paid out of a fund, under an order from which those words are omitted, may be directed to be recouped out of another fund which is primarily liable for that purpose.” The substance of this is that the court may make a provisional allowance out of the fund without losing its power to place the bui’den ultimately upon the party who ought to bear it. It affords no certain indication as to
Abundant authority sustains the position that, under circumstances making it just and equitable to do so, the compensation of the receiver may be decreed against the plaintiff. In French v. Gifford, 31 Iowa 428, the appellate court, modifying the decree of the lower court, gave the receiver by way of compensation one thousand dollars out of the fund and a decree against the plaintiff for two thousand dollars, the balance of his compensation. In Radford v. Folsom, 55 Ia. 276, the defendants demanded that two-thirds of the receiver’s compensation be charged to the plaintiff, and the court, admitting the power to do so under proper circumstances upon an examination of the record, held that the circumstances were not such as to make it equitable to do so. In Cutter v. Pollock, 7 N. Dak. 631, on the second appeal, the court affirmed a decree in favor of the defendants against the plaintiff for three-fifths of the amount which the receiver had retained out of the funds which had been adjudged to belong to the defendants, the receiver having been appointed at the instance of the plaintiffs, who had failed at the hearing on the merits. In Cassidy v. Harrelson, 1 Colo. App. 458, the court held as follows: “A receiver having been appointed by the court on application of the inter-venors in a cause wherein they were not entitled to intervene, the costs incident to the appointment were properly adjudged against them.” In Higley v. Deane, 64 Ill. App. 389, the court held that “Where a party, without probable cause, obtains the appointment of a receiver, he should be made to pay the entire expense thus by him created,” and the decision was affirmed in 168 Ill. 266. In Kerr v. Hill, 27 W. Va. 576, 616 the receiver’s compensation and expenses were allowed out of the fund, to the prejudice of the defendants who were subsequent lienors entitled to the surplus, although the appointment was illegal, because without notice, and made at the instance of the plaintiff. In French v. Gifford, cited, the court said: “In cases likes the one under consideration, we may attach the costs to one or either
The decree appealed from gives costs. to the prevailing party, in the absence of any attempt, on the part of the defendant, to show any reason why the general rule should be varied or departed from. The litigation was occasioned by an act of fraud on his part in the procurement of the deed which made it necessary for the plaintiff to bring this suit in order to obtain what belonged to her. The case is not one involving the administration of a fund, such as a trust estate, a decedent’s estate, an estate of an insolvent person or corporation, in which both plaintiff and defendant have an interest and out of which the costs must be taken, for the reason that they cannot be obtained from any other source. The controversy was one over the title to property. There was no middle ground, no community of interest. The whole fund belonged to one or the other. Upon obtaining it, the prevailing party was entitled to have along with it the necessary costs of the prosecution of the suit. No reason is perceived why, under such circumstances, any necessary costs of the litigation should be paid out of the property or funds of the successful party. • The appointment of the receiver was without notice, it is true, but the defendants acquiesced in it by their failure to move for his discharge, and had they procured his discharge on such ground, he would have been immediately re-appointed, if the case was such in its nature and circumstances as to warrant the appointment of a receiver. The property he was to receive
The ability of the defendants to make restitution, of the value of the property is advanced as a substantial reason why no receiver should have been appointed. In mans'- cases insolvency of the defendant must be alleged, but they are usually cases in which questions of title are not involved. Here, title alone is the bone of contention. It was not a -claim for money, but to the title to oil, the royalty oil, and the bill alleged that the defendant’s claim thereto was founded upon an act of fraud. It further appeared that, for the full and adequate protection of plaintiff’s interest, the oil should be sold at such times, during the pendency of the suit, as the market might be favorable, and the discretion to say. when such sales should be made should not be left to her adversaries. Our statutes and our decisions import that the title and rightful control of property must be adequately protected, and discountenance the view that no injury results, if the owner may obtain its value in damages. The courts should protect his property from misappropriation and preserve his title to it so that he may use, retain or sell it, and determine 'the time of sale, purchaser, terms and the price, and when legal remedies are inadequate for such protection, equity supplies the defect. Peterson v. Hall, 50 S. E. 603; dissenting opinion in Zinn v. Zinn, 54 W. Va. 483. An injunction may be awarded to protect any plaintiff in a suit for specific property, pending either at law or in equity, against injury from the sale, removal or concealment of such property. Code of 1899, chapter 133, section 1.
One other contention must be disposed of. Henry R. Smith and Gertrude Duncan were co-defendants of Brown, and resisted the demand for the plaintiff, by their joint answer and by uniting in the second appeal. They claimed a one-fifth interest in the royalty oil. Thougli they were not parties to the original transaction under which Brown claimed, and subsequently obtained their interest from, or through, him, they claimed the benefit of his act. But the former decree gave general costs against all three,, whereby these claimants of one-fifth interest were made to pay two-thirds of ■ said costs. The undue proportion thereof may, for aught that can be ascertained from the record, amount to one-fifth of the extraordinary costs. We have no taxation of it. In view of this, we see no reason for disturbing the decree and it will, therefore, be affirmed.
Affirmed.
Dissenting Opinion
(dissenting):
I cannot see that Brown should pay the receiver’s compensation. The general rule is that such compensation is paid out of the fund. Elk Fork, Co. v. Foster, 99 Fed. 495; Kerr v. Hill, 27 W. Va. 616. There is no need of this large extra expenditure, because there is no danger of loss or suggestion of insolvency. It was only a'conflict of title to oil. Freer v. Davis, 52 W. Va. 37. If the plaintiff, having no legal ground for a receiver, chose to ask one, she should pay for his services.
There was no emergency calling for the appointment of a receiver without notice. Notice is required before receiver can be appointed in vacation. Batson v. Findley, 52 W. Va. 343; Ruffner v. Mair, 33 Id. 655; Smith on Be-
I do not think there can be an ax>peal or writ of error resting alone on error as to costs. The Constitution, Art. 8, section 3, excludes costs, both as to sole ground of appeal or as going to make up the sum for appeal. But what are costs under that clause? I think it means general costs, taxable under the statute, not special or extraordinary allowances, such as pay of a receiver. I think appeal lies as to such allowances. Cramford v. Fickey, 41 W. Va. 544, (23 S. E. 662.) My reason is that they are not “costs” under said clause. Therefore, an appeal lies in this case.