21 Fla. 203 | Fla. | 1885
delivered the opinion of the court:
I. The first point made by appellants is that the appellee cannot maintain this bill in its own name. In 1st Daniel’s . C. P. & P., 198, it is said : “ Where the subject matter in litigation is a legal chose in action which has been the subject of assignment, the assignor, or if dead his personal representative, should be a party ; for, as an assignment of a chose in action is not recognized in a court of law, and is only considered good in equity, the recovery in equity by ,the assignee would be no answer to an action at law by the assignor in whom the legal right to sue still remains, and who might exercise it to the prejudice of the party liable
. The true principle, according to Judge Story, is that where the assignment is absolute and unconditional, leaving noequitable interest whatever in the assignor,and the extent and validity of the assignment is not doubted or denied, and there is no remaining liability in the assignor to be affected by the decree, it is not necessary to make the latter a party; and at most, in such a case he is a mere nominal •or formal party. Story’s Eq. PL, §153. Where the assignment is not absolute, and the assignor retains an interest in the security assigned, he is a necessary party “ because he is interested, and particularly.in taking an account of what is due” on it. Miller vs. Henderson, 2 Stock., 320. In Bruen vs. Crane, 2 N. J. Eq., 347, which was a bill to foreclose a mortgage, Chancellor Pennington, in overruling the demurrer for want of the assignor as a party defendant, the .assignee thereof being a party, said: “ I can see no stronger reason for making the assignor of a judgment a party than the mortgagor, who has parted with all his interest in the lands. The multiplication of parties should be avoided whenever they have no interest at stake in the cause; it •can only tend to create expense and embarrassment.” Mi. Jones, in his work on mortgages, (§1373) says that the assignor is not a proper party where the assignment is abso
We consider the rule dispensing with the assignor as a necessary party where the assignment is absolute, and no. interest remains in him, as appears to be the case at bar, to. be the better one, and adopt it. Such we understand to. have been the view of this court in Betton vs. Williams, 4 Fla., 11. Moreover, since the passage of chapter 3241, Laws of Florida, authorizing civil actions at law to be-maintained in the name of the real party in interest, we do-not think it can be held in this State that “ an assignment of a chose in action is not recognized in a court of law.”'
The reason urged that this suit should be in the name of the assignor because if assignees get a decree in their name-a satisfaction of record of this decree will not appear of record to be any satisfaction of the Bostwick decree—does: not strike us with much force. Moreover a decree in this, cause subjecting to the payment of the Bostwick decree lands standing in the name of any of the defendants, would, we think, mention that decree, or provide in effect at least that the lands should be sold under that decree, or that moneys arising from the sale of such lands should be applied to the payment thereof, and on such application being made-that decree should be satisfied on the record.
II. The second point urged by appellants is: “It appears-from the record that at the time the conveyances complained of as fraudulent were made, Bostwick and wife, the-
The Statute of Frauds is by its terms for the protection of creditors or others * * intended to be delayed, hindered or defrauded, * their heirs, successors, administrators and assigns.” When it shall be shown that the alleged fraudulent conveyances and acts are merely voluntary conveyances, and that the creditor’s security is “ ample and full to protect him,” it will be an apt time to decide the law applicable to such a case, but it would be ¡premature to do so in a case where it is not only specially •alleged that the conveyances were made for the purpose of ■defrauding Bostwick and wife, but also that the property 'conveyed is still in fact the propertv of Robinson, and the purpose of the bill is to subject it to the debt, and the se■curity has been sold and a large balance remains unpaid, 'and the bill is demurred to. We do not see that it lies in the mouth of the demurrants to question upon argument ■either the fraudulent acts or intent alleged, or the damage to complainant as assignee of the decree. In the case of Barrow vs. Bailey, Adm’r of Bellamy, 5 Fla., 9, the judgment, of which satisfaction was sought, represented an un
The eases cited by appellant are not in point. Seymour vs. Wilson, 19 N. Y., 417 ; Reed vs. Mullins, 48 Mo., 344,, have no bearing that we perceive. Fetrow vs. Merriwether,. 53 Ill., 275, wh,ere the mortgagee was in possession, and notice of the mortgagee was not questioned, decides that it-, did not concern a mortgagee that his mortgagor had sub-, sequently conveyed the equity of redemption of the mort-. gaged property to a third person for a full consideration,., gratuitously or for the purpose of hindering and delaying-his creditors, as the conveyance could not affect the mort-. gagee’s rights. If the mortgage debt is not paid, the. holder of the mortgage can foreclose and sell against either-the mortgagor or such assignee of the equity of redemption. In Hodson vs. Treat, 7 Wis., where the mortgage-was registered, it was held that a conveyance by a mortgagor of his equity of redemption, though fraudulent and. void as to his creeitors is not void as to his mortgagee, and, for the same reasons as are given in the Illinois case. We. do not see anything in the doctrine of these cases from, which to infer that a creditor who has foreclosed and sold the equity of redemption and has a decree .for the balance, of his claim, is not still a creditor and one that might have-, been injured prior to such foreclosure by either a voluntary- or an expressly fraudulent conveyance of his debtor’s other-property, nor anything which denies such creditor the. right to go into equity to reach property standing in the. name of others, but really belonging to the debtor. It is, true that in Bump on Fraudulent Conveyances, page 14, in a paragraph discussing the debtors being held to goods, faith, it is said : “ If they (the creditors) take no specific-
' III. The third point urged is that there is no personal judgment against the defendant, Calvin L. Robinson, and that “ therefore there is no right to inquire into his voluntary conveyances.” The demurrer, of course, admits that the decree of August 13, 1880, of which a copy is in the record, was actually entered, and we must determine from its face what the character and effect of it is. It is not contended that the correctness of it, as justified by the pleadings and proceedings on which it is based, can be in•quired into here. In Daniel on Negotiable Instruments, ■§271, it is said : “ Guardiaus cannot bind their ward’s estate, nor trustees the estate of their cestui que trust by bills •or notes, and hence though they sign themselves as guardians or trustees they are personally bound, because otherwise the instrument would be invalid.” See also §262, and 5 Mass., 299; 8 Cow., 31; 6 Mass., 58; L S. & M., 666. Where a party signs a note with the addition to his name •of the word “ trustee,” he is personally liable; nor can evidence be admitted to show that at the time of the execution of the note there was a parol agreement that he
E. E. A., executrix of J. S. A., made a note by which she promised to pay H. S. H., or his order, $1,097 on demand, &e., and signed it E. E. A., executrix of J. S. A., and it was held that this was the note of E. F. A., and did not bind J. S. A.’s estate. Higgins vs. Driggs, Administrator, 21 Fla., 103; Gregory vs. Lee, 33 Texas, 813 ; Harrison vs. McClellan, 57 Ga., 531; Wisdom vs. Beeker, 52 Ill., 342; Sumner vs. Williams, 8 Mass., 162 ; Davis vs. French, 21 Maine, 21; Cornthwaite vs. First, N. B., 57 Ind., 268.
“ Where an executor accepts a draft drawn upon him by a distributee of the estate, even though the acceptor has money in his hands in his fiduciary capacity belonging to the drawer, the estate will not be bound, but only the executor individually. 52 Ill., 342. In Pinney vs. Administrators of Johnson, 8 Wend., 500, the court say: “It seems to be well settled upon authority that a judgment upon a bond or other security given by an administrator or ■executor, though in his representative character, does not bind the estate which he represents, nor can it be taken upon the execution issued thereon. The description of the defendants in the bond as executors or administrators is surplusage, and they are chargeable upon such a bond and judgment only in their own right. It is their personal contract and whatever their rights may be under such a bond or judgment if paid, it is not a legal judgment or debt against such estate, and cannot be pleaded as such.” In Tinsley vs. Lee, 51 Ga., 482, it was held that a decree rendered against the defendant on a bill in equity, with the word “executor” added to his name without more, binds his personal goods and chattels, and that an execution to be levied of the goods, &e., of Thomas W. Howell, ex-
Confining our view to the decree as set forth in the record we see nothing in it professing to bind any trust property or to bind anything but the defendants therein, and them personally; and the saméis the case, if we permit ourselves to consider the whole record. The use of the word “trustees” is not effectual to provide for satisfaction out of the property of any one but Robinson and Mitchell. We find nothing in-the record to deprive either this decree, or the notes as described assuming we may consider them, of their personal obligation on the makers. The word “ Trustees,” in our judgment, no more changes the effect of the judgment than it does that of the notes. Strike it out and no change is' made. The decisions treat it as surplusage; Trustees and other fiduciaries may exempt-themselves from
IV. The fourth point is stated thus : “ This is an independent bill in equity praying to have the former decree against Robinson and Mitchell declared a personal' decree and asking for an injunction to restrain the master from carrying out a third and different chancery decree,” and it is urged that equity will not enjoin another equity suit on an independent bill, but that it must be done by petition in the same suit.
It is not sought in this case to change the form of the decree of August 13, 1880, or to give to it any other character than the law gives to it, but simply to obtain satisfaction of it, if it be a personal decree, and of which we think there is no doubt.
In Daniel’s Chancery Pleading and Practice, 1567, (Cooper’s Edition) we find that “ proceedings in one suit in equity may be restrained by an injunction in another suit,” and the case is put of a stakeholder who has been sued by one person claiming an interest without making another interested a party, filing a bill of interpleader and restraining proceedings in the former suit. In a note, it is said that
In eases where a party to an absolute and final decree or one standing in privity to him, seeks to review it or restrain its enforcement, the decree having been enrolled, we think it may be done in this State in eases of fraud by an original bill for fraud ; (or bill of review, 2 Otto, 454 ;) or, if there is error in law arising upon the pleadings, proceedings or decrees, a bill of review without leave will lie ; or if there is a discovery of material new matter of fact, such as the party, by the use of reasonable diligence, could not have known, then a bill of review with leave of the court will lie; and where a final decree has, after a decree pro oonfesso, been enrolled, and twenty days have passed, and such decree becomes final, the defendant may, by motion, under our practice,have the decree opened and a defence upon the merits let in, where he is guilty of no laches and his failure to set up his rights' in the time required was occasioned by causes beyond his control, and by obstacles insuperable in their character, and he has a good defence. Stribling vs. Hart, 20 Fla., 235. Bills of review lie only in favor of parties and their privies. Thompson vs. Maxwell, 5 Otto, 391. The cases in 2 Paige and 4 Iredell, are cases brought by parties to the original decree, and are not in point, as the case at bar is by a stranger. In the case in Clarke’s Chancery, however, the complainant had assigned mortgages held by him to the company as collaterals for a debt due
Although we do not mean to commit this court here to a ruling as to what can be done in a case between parties toa former decree, we find, however, that the New York cases ■cited are practically overruled by the Court of Appeals as authorities against the power to issue an injunction, in Erie R. Co. vs. Ramsey, 45 N. Y., 637, where it is held that “ a ■court of equity has power by injunction to restrain proceedings in another equitable action in the sanie court.” Of Smith vs. A. L. J. & T. Co., and Lane vs. Clark, (Clarke, 307 and 309,) it is said they “do not hold that there is no jurisdiction to grant an injuntion. The}7 are to the effect that it is not as a general rule a proper mode of obtaining a stay of proceedings.” In the same case it is said : “ If it be said a court cannot restrain itself, the answer is, a court of equity never sought or claimed to restrain a court at law, but did enjoin the suitors in it.” And again, quoting from Willard’s Eq., it says : “ As an injunction to restrain proceedings at law is directed only to the parties and assumes no superiority over the court in which the action is pending, but is granted solely on the ground that some equitable circumstances exist which render the prosecution at law against conscience, there is no reason why an injunction ■should not be granted by the court in .which the action is pending, if the court has jurisdiction both at law and in ■equity. * * But there is not such lack of precedent and authority for the position that a court of equity will •entertain a fresh action in it, and in that action join suitors in an action then pending before it. An action of interpleader is such a case. * * * In Warrington vs. Wheaton, (1st Jac,) an injunction was granted to restrain parties to another action in the same court, and this though the objection was made that the same relief could be had
In Montgomery vs. Whitworth, 1 Tenn. Chan., 174. Chancellor Cooper says: “The American cases holding that an injunction will not lie to restrain a decree in the same court may all be traced back to the rulings cited by Hoffman. Both cases merely decide that an injunction granted by a master to stay proceedings in another suit is not authorized.” The effect of the rule requiring application to be made in the original cause makes it “necessary for the party aggrieved not merely to set out his case in his bill impeaching the former decree, but to prepare a similar statement. in the form of a petition in the original cause, * * two pleadings, precisely the same in substance and only differing in form * * to accomplish the end which ought to be obtained by one proceeding.” Speaking of the reasons given in 1 Clark, 307, he says : “ But it is not easy to see how this would follow. The injunction in the new suit would be as much under the control of the court as the restraining order in the original suit. And e contra the restraining order in the original suit would seem as likely to render it difficult to foresee the termination of litigation
Speaking of the 23d Ordinance of Lore!.,Bacon, which is in these words: “In the case aforesaid where an injunction is to be awarded for stay of suit at common law, if like suit be in chancery, either by scire facias, or privilege or English Bill, then the suit is to be stayed by order of the court as it is in other courts by injunction, for that the court cannot enjoin itselfChancellor Cooper says : “The Ordinance of Lord Bacon and the decisions of Chancellor Walworth declare the same rule, which is that the restraining order, whether it be by injunction in the new suit or supersedeas in the original, should be warranted by public-order made in court. This is all that was decided by Chancellor Walworth in Dyckman vs. Kernochan. It is not the case of the common injunction or such as the master is au
Judge Manning in Wright vs. Phillips, supra, speaking of the quotations made above from Willard’s Equity, says they “ suggest a good reason why in some instances perhaps a chancellor should not, from a too sensitive idea of unfitness, refuse to perpetually enjoin a party from carrying into effect a decree he had rendered in favor of such party. A court of equity upon its being properly shown that it had hy fraud or imposition been led to make an unjust dedecree would not hesitate to annul it. And if the same effect can be produced by perpetually enjoining the execution of a decree, it may sometimes be allowable for the court which rendered it to do so. Questions of this sort are most likely to arise in cases of bills of review or in the nature thereof.” 12 B. Mon., 581. In High on Injunctions, §270, it is said that the authorities are “ somewhat conflicting and wholly irreconcilable and “ upon principle it is difficult to perceive any satisfactory reason why the jurisdiction should not be extended to restraining the enforcement of decrees in chancery upon the same grounds and for like reasons as those which underlie the jurisdiction in restraint of the enforcement of judgments at law. * * Ho higher degree of inviolability is perceived as atattaehing to one judicial determination than the other. In
The U. S. Supreme Court, (State of Florida vs. Anderson et al., 91 U. S., 667,) in the exercise of original jurisdiction, enjoined the execution of a decree for the sale of a railroad, which Anderson and other bond holders of the same class had obtained in the U. S. Circuit Court, against a railroad company for the sale of the road. The State sued in behalf of itself and the Trustees of the I. I. Fund of Florida. The State and Trustees had, prior to Anderson et al., instituting their said suit, begun a suit in the State court to recover a balance of purchase money due the Trustees for the road, and for which a vendor’s lien was claimed, and had made all known parties claiming liens defendants. Afterwards Anderson et al., began their suit in the U. S. Circuit Court against the company and trustees, and claimed that their bonds were still a lien on the road or at least entitled the holders thereof to claim the unpaid purchase money and prayed a sale of the road to pay their demand ; but they dismissed as to the trustees, and under an arrangement with the company obtained a decree declaring the bonds a first lien on the road, and directing a sale of it to pay them. After execution had been issued on the decree and before the bill was filed in the Supreme Court, Anderson et als. filed a bill to carry such decree into execution, making the trustees parties and charging them with intent to seize the road, and praying an injunction. The injunction of theU. S. Supreme'Court restrained Anderson et al., “ from selling or proceeding to sell said railroad and property by virtue of their said decree or any decree supplementary thereto in the same case,” but did not profess to restrain the TI. S. Circuit Court. The proceedings of the bond holders was held under the cir-cu'mces of the case to be a fraud on the trustees.
Where a decree has been obtained and is charged to be a fraud, as in the case at bar, and the transactions upon which it is based are set up and charged to be, with the decree, fraudulent contrivances to protect the property of the defendants from debts, and a sale of the property covered by such alleged fraudulent decree is about to take place, we see no satisfactory reason why the creditor seeking to reach the debtor’s property should not, he being no party to the other proceedings, have an injunction from the same court which rendered the decree to restrain the sale, which must, if made, lead to further complication, particularly if new parties purchase. Rone of the reasons alleged against the practice strike us as good in such a case, and.we think the petition in the same court in the original- cause cumbersome and unnecessary.
Y. The fifth point is, the bill does not allege that the complainant has exhausted the remedy under its execution by levy or attempted levy on trust property or other property of defendants.
(a.) In Barrow vs. Bailey, 5 Fla., 9, the doctrine laid down is that “ if a creditor seek the aid of a court of equity against the real estate of his debtor he must show a judgment at law creating a lien upon such estate ; and if he seeks such aid in regard to personal property he must show an execution sued out and pursued to every available extent.” In Mississippi, Wisconsin, Alabama and Illinois the requirement as to reaching real estate is the same as that prescribed in the above case. Vasser vs. Henderson, 40 Miss., 519 ; Cornell vs. Radway, 22 Wis., 260; Dargan
(ib.) What we have said above as to what is necessary to-enable a creditor to pursue real estate in equity is applicable only to such as the debtor has held the legal title to, and not to such as is deemed equitable assets. Where one purchases land and has the title made to his wife in fraud of his creditors it is deemed an equitable and not a legal, asset, and, though this is done to hinder, delay and defraud creditors, it is considered by at least some of the courts not to be within the Statute of Frauds, still equity will subject the property to the payment of his debts. Carlisle vs. Findell, 49 Miss., 229; Gowing vs. Rich, 1 Iredell, 553. The interest of the debtor in such a case cannot be sold on execution at law. There has never been any legal title in him for the-judgment lien to take hold of or the execution to operate on, as in the case where he has had such title and conveyed it fraudulently; in which case equity regards the conveyance-as inoperative on account of the fraud. The ordinary and well established rule is that before a creditor can resort to, equity in pursuit of such an equitable asset in aid of an execution he must have pursued his legal remedies to every available extent, and have a return of his execution nulla bona. The creditor’s right to relief in such a case, i. e., the property being such that it cannot be taken on execution.
(c.) In view of the allegations of the bill, and particularly as this is not simply a case of a purely voluntary conveyance, we do not think there is, in so far as the bill seeks lo reach lands of which the legal title has been in Robinson, anything in the argument that it is not shown that 'there is no other property of defendants to be levied on. Fox vs. Moyer, 54 N. Y., 131; Bump on Fraudulent Conveyances, 539.
In Vasser vs. Henderson, supra, it is held that conveyances made to hinder and defraud creditors are declared by the 'Statute of Frauds to be “ clearly and utterly void ” as •against creditors affected by them, and “the rightof the judgment creditor to levy his execution upon property so conveyed, and to proceed at law to subject it to sale cannot be denied, without any reference to the question whether the debtor possesses other property or whether there are other defendants having property liable to the same judgment. In other words, it is not necessary in order to justify the levy of an execution upon property fraudulently conveyed
(d.) What we have said can be easily applied to the facts^ of this case. As to all the real estate of which the legal title has been in Robinson we think the bill sufficient, but-as to such as the title of has not been in him but was con-, veyed directly to Mrs. Robinson, we do not think the bill shows a sufficient exhaustion of legal remedies.
We have not failed to consider the case of Case vs. Beau, regard, 101 U. S.; Hayden vs. Thrasher, 18 Fla., and West vs. Chasten, 12 Fla., and other cases where the equitable» jurisdiction was founded upon a partnership lien or other-ground of such jurisdiction independent of an exhaustion of legal remedies.
VI. The sixth point is that the bill has been dismissed by the clerk as to Mitchell, and therefore no decree can be-pronounced against C. L. Robinson alone,, it being urged by appellants that the note was a joint note, and the decree-against them jointly. This is not a ground of demurrer,^
VII. The seventh ground is that the bill is multifarious. This objection only applies where a complainant claims ¡several matters of different natures by the same bill, and where one general right only is claimed the demurrer will not hold even though the defendants have separate and distinct interests: as where a person claiming a general -right to the sole fishery of a river files a bill against a number of persons claiming several rights in the fishery as lords •of the manor, occupiers of lands, or otherwise. 1 Daniel 'Chancery Pleading and Practice, 341, m. p. In Hayden vs. Thrasher, 18 Fla., 795, it is held that a bill in the nature of a creditor’s bill is not multifarious because it prays discovery and relief against several who are not united in interest and who may be strangers to each other, as the object of the bill is to reach sundry assets of the principal defendants in their several possessions. Dummock vs. Bixby, 20 Pick., 368 ; Sears vs. Carrier, 4 Allen, 339, 341; Tucker vs. Tucker, 29 Mo., 350. Sears vs. Carrier was a bill to enjoin one Carrier, who was alleged to have obtained fraudulently from Sears’ intestate four promissory notes, from collecting them. The notes were each made by a different promissor, and all the promissors were made parties to restrain them from paying. The bill was claimed to be multifarious because they were distinct contracts made with •distinct parties who had no connection with each other, yet the court said: “ But as to Carrier, the plaintiff has the right to join all these claims in one suit. He is not obliged to bring a separate bill against him for each of the notes. The makers of the notes are rightly joined as parties on ac
The conveyances and mortgage specifically enumerated, and alleged to be fraudulent, are all either to Mrs. Robinson directly, or to another in trust for her, and the main or one purpose of the bill is to reach them, and the right to •do so is “ one general right.” The authorities cited go much further than is required to sustain the bill as to these features of it against this objection, but there is a feature which we think subjects the bill to objection. The stating part and prayer of the bill show that one purpose of the bill is to relieve land of which the complainant claims to be the owner, of the cloud which a sale by the master, Marcy, will, and which the decree under which he acts, does •cast upon it. This we do not think can be held to be within the general right claimed by the other features of the bill: the former right is that of a creditor to have payment ■of his debt; the latter is that of one claiming to be the •owner of property to have a cloud removed and a sale prevented, and is of a different nature, though it arises out of the same transaction as the alleged fraudulent mortgage .and decree do. Daniel’s Chancery Pleading and Practice, •343, 344. It is, however, only in so far as the bill claims relief.as to the laud owned by the plaintiff that it is objectionable, for, as indicated above, the mortgage and decree, in so far as they are alleged to be an obstacle to the collection of complainant’s debt, or affecl property of Robinson .and Mitchell, or either, are within the general right claimed by the complainant. Attorney-General vs. Merchant Tailors’ Co., 1 M. & K., 189 ; Newland vs. Rogers, 3 Bar.
VIII. The eighth point urged is that the claim is “barred bj" laches and the statute of limitations—the deeds sought to be cancelled having been made ten years ago.”
A careful reading of the bill will disclose that the case it makes is not one of mere voluntary conveyances, in which the complainant seeks to subject the property merely because Robinson’s money paid for the property where it was conveyed by another to Mrs. Robinson, and because the conveyances made by him or him and Mitchell were without consideration. There is a full statement of specific fraudulent acts, and besides, the property is alleged to be in fact still Robinson’s property, and the title of the alleged fraudulent grantees is alleged to be, “ so far as it is vested in them, in trust for him,” and the property in Mrs. R’s. name is alleged to have been not' only paid for by R. or conveyed by him without consideration, but the several transactions are alleged to have been to defraud Bostwick and wife and other creditors, and it is further alleged that R. has asserted the entire and exclusive management and control of the property so fraudulently conveyed, negotiated the purchase and sale thereof, paid taxes and dealt in all respects with said land as his own property except that for his own fraudulent ends he has used the names of his wife and Miss Eoss and Seymour to conceal and cover the title from his creditors. It cannot be said that the bill is one of mere allegations imputing motives of fraud. The particular manner in which the acts have been .done, and the par
IX. Although there is ground for equitable relief in the bill, and the demurrer is general, yet as the bill is multifarious, the demurrer should have b'eén sustained.
The order overruling the demurrer is reversed and the case is remanded for further proceedings, not inconsistent with this opinion.