24 Wend. 388 | N.Y. Sup. Ct. | 1840
By the Court,
A point is now made on the validity of the levy; but it was not raised at the trial: and the only question is whether trespass will lie against the sheriff for seizing and selling under a fi. fa. the property of an insolvent firm, to satisfy the individual debt of one of the members. The action here is the same as if it had been brought by the partners, it being by trustees, claiming under an assignment made subsequent to the levy. The question has been a good deal discussed before us in consequence of some apparent conflict in the cases, and a difficulty upon them, felt more by the other members of the court -than by myself. For [ *393 ] one I never could bring myself to doubt a
It was admitted in argument that the sheriff may seize, but it was said that neither he nor the purchaser can remove the property. Whereas the cases at law are all express that he may sell, from Holt down to the 12 Wendell. The distinction sounds singular on its face. For what purpose does a sheriff seize property on a fi. fa. if not to remove and sell it ? But his power was assailed a priori, and it was said he can exercise no greater power over the property than the copartner against whom the execution goes ; that by the levy, the sheriff is but a tenant in common, who must wait his chance, and take the goods when he can ; but he cannot remove them if his co-tenant be unwilling and hold on to the possession, without committing a breach of the peace. If this were so, the reason would be a perfect non sequitur as to the right of suing in trespass da bonis, trover or replevin, however it might entitle the co-tenant to sue for an assault in wresting the property from him. Hyatt v. Wood, 4 Johns. R. 150, 159, 160. But is the law *so absurd as to command a sheriff by its [ *395 ] writ to seize and sell an article, yet forbid him to remove it, or declare him a breaker of the peace for selling it, because he resisted, and put to the exercise of force ? This is a sort of imbecility which the common law has been careful to avoid in all cases. When it directly commands an officer to do any act, it impliedly gives him the power and means of performing it, and in nothing is this rule more conspicuous than in the execution of a sheriff’s power. But it cannot be necessary to pursue the question through a course of reasoning, for the sheriff’s right at law is settled by the authority of this court. Wilson & Gibbs v. Conine, 2 Johns. R. 280, is not opposed to it. There both the partners sued in trover for a seizure upon execution against one ; but they recovered merely because the defendant failed in Ms formal proof of the decree on which the execution issu
It is supposed that Dob v. Halsey, 16 Johns. R. 34, gives countenance to this action. That was assumpsit by two out of three partners, to recover the price of goods sold by a third, because he had turned them out in payment of his private debt. The plaintiffs were nonsuited, on the ground that all the partners had not joined. The action was a singular one. The decision seems to suppose that after a partner has sold the goods of the firm in payment of his honest debt, without any fraud as against himself, he may join his co-partners in an action to recover the price of the goods—a price which, when recovered, he may release, or still use the avails for his individual benefit. Admitting his copartners to have been defrauded by the sale, a bill in equity against him and the vendee, would seem tobe the more obvious remedy. In Roderiques v. Heffernan, 5 Johns. Ch. R. 417, a bill was filed and relief obtained in that form, for such an injury. The state of accounts between the partners should be inquired into, and if the firm be not injured, the vendee should not be disturbed. He has obtained no more .than the law would give him, on execution against the man from whom he received the goods. Independently of an account, and especially where the action at law is in the name of all the partners, I cannot but think the decision of the supreme court of appeals of Kentucky in Owings & Co. v. Trotter, 1 Bibb, 157, denying an action to the firm, more in accordance with the law and justice of the case.
In the state of Vermont, all preference of partners or their creditors by way of lien over an attachment or execution for the debt of a sole partner has been entirely repudiated, *both at law and in [ *398 ] equity. Reed v. Shepardson, 2 Verm. R. 120.
On the other hand, there is no doubt of the equitable rule in England,
I admit that courts of law have sometimes felt able to apply this equitable doctrine. One instance is, where an *action for a [ *400 ] false return was brought against the sheriff, on the ground that he had omitted to levy on partnership property under process of domestic attachment or fi. fa. against an individual partner. Dunham v. Murdock, 2 Wendell, 553. Pierce v. Jackson, 6 Mass. R. 242. Phillips v. Bridge, 11 Mass. R. 242, 249. Commercial Bank v. Wilkins, 9 Greenl. 28. Tappan v. Blairsdell, 5 N. Hamp. R. 189. This is on the obvious ground that the plaintiff has lost nothing but that of which a court of chancery would have deprived him ; and the sheriff ought not to be held account, able for doing what the court of law sees that a court of equity would have compelled him to do. So the equitable right was tried at law where a part, ner sold out his share, covenanting against liens ; the balance on an account, inter se, was decidedly against him, for which it was held his copartner had a lien, and so the covenant violated. Hodges v. Holeman, 1 Dana, 50, 53. Other like instances exist, some of which I shall hereafter have occasion to notice.
It is said this court is in the habit of arresting the sheriff’s proceedings, on the application of the debtor’s partner, that it will order an account to be taken by the clerk, and then direct the sheriff to pay such share of the proceeds to the copartner or shall appear to be his due. Something like this was indeed done in Eddie v. Davidson, Doughl. 650. The case, however, recognized the sheriff’s right to sell, and the order was in terms to pay a part of the money levied, to the assignees of the copartner. The assignees obtained the order. A like order was made A. D. 1816, in The King v. Rock, 2 Price, 198, on motion by partners; and the court said there had
But admitting that this court would interfere on a non-enumerated motion, that would be but equivocal evidence at best that the lien in question is of a legal character. Such a motion is very often in principle the mere substitute of a bill in equity. There are divers cases in which courts of law [ *402 ] have recognized and acted upon the lien when it arose Collaterally ; but these present exceptions to their ordinary course. They have not, in any instance that I can find, allowed the preference as matter of law ; but only availed themselves of an accidental relation or condition, to
Even the supreme court of Pennsylvania, possessing as they are known to do both equitable and legal powers, decline stopping to take an account. In M'Carty v. Emlyn, 2 Dall. 277, 2 Yeates, 190, S. C., the money of a firm was seized by foreign attachment for the separate debt of a surviving partner. His interest was one half. The counsel of the garnishee moved a stay till an indemnity could be obtained against the foreign attachment. The motion was denied, and one half the money was ordered to be paid over absolutely to the plaintiff. M’Kean, Ch. J. and all the court admitted the rule in equity. But he animadverted on the granting of such an [ *404 ] application. He said a partner may *owe separate debts, and his property may consist of partnership stock ; yet if the objection prevails, it is impossible to conceive when the separate creditors will be able to make that property responsible. While the partnership continues, how shall they compel a disclosure and liquidation of all the debts and credits of the company ? and even when a partnership is dissolved, where will the separate creditors find the inclination or the power to scrutinize and close the records of a long and complicated mercantile connection ? But the law is happily otherwise : for it has been repeatedly settled here as well as in England, that a partner may be sued for separate debts; that the partnership effect may be taken in execution and sold by moieties ; and that the purchaser of the moiety, under the execution, shall he considered as tenant in common with the partner owning the moiety.” All this he considers proved by the very case before Lord Mansfield, Eddie v. Davidson, now relied on to show thef contrary. The doctrine was afterwards glanced at in Knox v. Sumners, 4 Yeates, 477. A levy had been made under a fi, fa. for the separate debt of one partner, and there was a subsequent levy under a fi. fa for the joint debt. As between these conflicting levies, the execution for the separate debt was postponed to the other ; but mainly on the ground of fraudulent delay after the first was levied. In 1829, the important case of Doner V. Stauffer, 2 Pennsyl. R. 198, was heard and much considered. All the partnership effects had been levied upon and sold under executions against two partners for their separate debts ; some against one and some against the other. The firm was insolvent, and one of the partners sought to have the avails for which the effects had sold applied in payment of the firm debts, claiming that he was answerable for the whole debts of the firm. The court
Several other cases in different parts of the union have presented and discussed the question when it arose in the proceeding by foreign attachment; some refusing to recognize the preference, and others going strongly to favor it; more strongly even than the South Carolina cases. Among those denying the preference, is Wallace v. Patterson, 2 Har. & McHen. 463. Among those going most strongly,to favor it, are Gardiner v. Smith, 12 Lou. R. (Curry,) 370; Church v. Knox, 2 Conn. R. 514; Fisk v. Herrick, 6 Mass. R. 271; Upham v. Naylor, 9 id. 490; Barber v. The Hartford Bank, 9 Conn. R. 407, and Lyndon v. Gorham, 1 Gallis. 367. The great favor generally shown to partnership property in Hew-England as against a foreign attachment for the debt of one, did not get a foothold without able resistance. I allude to tjie dissenting opinion of Hosmer, J. in Church v. Knox, 2 Conn. R. 522. At most, it now stands but as an exception to the general rule. In Lyndon v. Gorham, Story, J. said : “ I consider that the present [foreign attachment] is a process in the nature of a bill in equity, to reach the funds of a debtor, and subject to all the liens and equities between the original parties; and in order to do cqjnplete justice, it is necessary that all proper parties should be before the court.” 1 Gall. 370. In the 1st vol. of his Treatise on Equity, 625, ch. 15, § 675, he says the preference seems incapable of being enforced in any other manner than by a court of equity: at law, he says, it is generally disregarded.
So far the cases fully illustrate the position, that in ^whatever [ *406 ] form the preference in question has been enforced, whether directly by chancery, or by action on motion, or by foreign attachment, the courts have always considered themselves as departing from strict legal right, and administering an equity. Such, also, was the case of Crane v. French, 1 Wendell, 311, on non-enumerated motion- The sheriff holding two execu
The attempt to enforce the equitable rule at law in the form of trespass or trover against the sheriff or purchaser has failed, even where the sheriff proceeded under foreign attachments, in respect to which the preference of
The re-argument in Lewis v. Thurber, was had at the last July term, but was not decided until January term, 1841. It will appear among the cases of the latter term.