88 Ga. 361 | Ga. | 1891
If section 4263 of the code is applicable, the contention of counsel for plaiutiff in error is unanswerable. But in our opinion, that section does not apply to cases which are brought to this court under the act of 1870, prescribing “the practice in cases of injunctions and ' other extraordinary remedies in equity, and the manner of taking judgments on the same to the Supreme Court.” That act expressly applies to cases involving the appointment of receivers, and provides for what are called “ fast ” bills of exceptions. It also substitutes for the ordinary supersedeas a method of its own for preserving and protecting the rights of the parties pending a review by this court of judgments in cases covered by its provisions. As will be seen from the words of the act quoted in the first head-note, it is made the duty of the judge to pass such order as may be necessary for this purpose. It seems clear that this plain mandate to the judge is certainly inconsistent with the idea that a supersedeas in cases of this kind can be obtained in the ordinary way. If a supersedeas cotild be thus obtained as a matter of right, there would be little or no occasion for the judge to pass any order at all in the premises; and if he undertook to do so, his power as to the terms of the order would necessarily be very limited. This, we are sure, was not intended by the act. On the contrary, its purpose was to enlarge the power of the judge in this respect and vest in him a wide discretion. Doubtless the legislature had in view the infinite variety of facts and conditions arising in these cases, and the consequent difficulty of making an uniform rule as to supersedeas that would operate justly and fairly in all of them. Slight reflection will suffice to show that what
In Hayden v. Phinizy, 67 Ga. 758, exception was taken by Hayden to an order imprisoning him for violating an injunction, and the question was raised in this court whether or not such a case could be brought here upon a “ fast ” bill of exceptions. This court held it could, and one of the main reasons given by Chief Justice Jackson for this conclusion was, that to hold otherwise would allow the defendant to violate the injunction for months “ by getting the supersedeas of the judgment below allowed by law until the final decision of this court,” evidently meaning that if. the case came up under the general law, a supersedeas could be obtained as a matter of right by complying with the terms thereof, but that if it came up under the act of 1870, no such result would follow.
After a careful examination of W. & A. R. R. v. The State, 69 Ga. 524, cited by counsel for plaintiff in error, we are satisfied that no ruling therein conflicts with our judgment in the present case upon the question of supersedeas. That was a quo warranto case. The act of 1871 (Acts 1871-2, p. 41) now incorporated in the code, sections 3206 et seq., prescribes the practice in quo warranto cases; and while it adopts some of the provisions of the act of 1870 touching the tendering and signing of bills of exceptions, and the docketing and hearing thereof in the Supreme Court, it does not adopt the provisions now embraced in section 3212 of the eodé. It would seem, therefore, that in quo warranto proceedings there is no law authorizing or requiring such an order as that
In Cummings v. Clegg, 82 Ga. 766, Chief Justice Bleckley, notwithstanding the general language used in the opinion just mentioned, expressed a doubt whether in applications for extraordinary remedies, such as injunctions, etc., a supersedeas could be obtained without a special order for that purpose. He did not analyze the opinion, as we have attempted to do, nor was it necessary, as an examination of the case then under consideration will show, but the expression of that doubt was almost equivalent to a statement that he really, thought such a special order would be necessary to obtain a supersedeas in the class of cases indicated, and he now fully concurs with us in so holding. We will remark, in passing, that by referring to section 3206 of the code, he included, among the extraordinary remedies in which such special order might be necessary, writs of quo warranto, but this was a mere inadvertence, there being no question then before the court as to whether such writs should be so included or not.
Another case cited by counsel for plaintiff in error was Howard v. Lowell Machine Co., 75 Ga. 328. In that case, however, Justice Hall says, in effect, that the decision excepted to must have been superseded in order to take the case from the cognizance of the judge below, and this sustains our present ruling that the absence of a proper supersedeas, in the nature of an order provided for by section 3212, left the case still under the control of the court below. When a supersedeas has not .been obtained, although it might have been by taking the proper steps, the other party may go on with the ease at his pleasure, taking the chance of an affirmance, and the risk of a reversal. Benning, J., in Jordan v. Jordan et al., 16 Ga. 452. See, also, Truluck v. Peeples, 1 Ga. 1; Allen v. Mayor, etc., 9 Ga. 286; Irwin v. Jackson, 34 Ga. 101.
The foregoing would, we think, justify the conclusion that the superior court of Fulton county would not, by the mere filing of said bill of exceptions, without a special order suspending further proceedings, have been ' prevented from proceeding even to final judgment in the case of Wise et al v. Ryan et al. We only rule, however, that the pendency of the writ of error 'in this court, under the facts stated, was no obstacle to proceeding below with interlocutory matters. To this extent we are sustained in principle by May v. Printup, 59 Ga. 128, 134, 135. There might be more reason and propriety in allowing the court below to take suitable steps, and pass necessary orders, to secure, preserve and protect the property in litigation, than to make, under the circumstances, a final judgment. Be this as it may, if it could lawfully do the latter, a fortiori it can certainly do the former.
The same legislature which passed the above recited' act passed another (Acts of 1889, p. 119) defining what the meaning of the words “bxfief of evidence” in xnotioxis for new trial should be. Of course, a bxief of evidence is the same thing, whether filed with a motion for new trial, or incorporated in a bill of exceptions when there is no such motion. All concerned ought,to be familiar with legislative acts x'elating to such important matters, but the terms of the one last mentioned are so pertinent to the question with which we are now dealing, we consider it proper to state fully what it provides. It enacts : “ That the brief of evidence required in all motions for new trial shall be a condensed and succinct brief of the material portions of the oral testimony, including therein a similar brief of interrogatories read on the trial. In such brief of the evidence there shall be included the substaxxce of all material portions of all documentary evidence; provided, that all documentary evidence copied as an exhibit or set out in the pleadings and introduced in evidexice, shall not be set out in the brief except by reference to the same. In all cases in which the testimony has been stenographically repoi’ted, the same may be reduced to narrative form, or the stenographic report may be used ixi whole or ixx part in makixxg up the bxief, but immaterial questions and answers and parts thereof stricken. The
It does not appear that the judge certified this evidence was a brief or approved it as such. The certificate to the bill of exceptions, being in the prescribed form, does say it contains all the evidence material to a clear understanding of the errors complained of. This may be, and doubtless is, perfectly true; but it is entirely consistent with the fact that the bill contains, as it does, much evidence that is entirely immaterial. In preparing a bill of exceptions of this kind, counsel should either make out a brief of the evidence and have it approved as such by the judge before incorporating it in the bill of exceptions, or it should appear from the evidence itself in the bill of exceptions that it is a brief, or at least that there has been a bona fide effort to make it one.
When this case was reached in its order, counsel for defendants an error moved to dismiss the writ of error on the ground that the evidence contained in the bill of exceptions was not a brief of evidence as required by law, and that this court could not, therefore, consider it. The motion to dismiss was denied, because there were questions made by the bill of exceptions which could be passed upon without reference to the evidence ; but we ruled we would not, over objection of defendants’ counsel, review the evidence or pass on the questions of fact decided by the judge below. Our refusal to do this is due to the failure of plaintiff' in error to bring the evidence here in the manner prescribed by law. This point was distinctly made and insisted upon by counsel for defendants in error; and the objection being in our opinion
It was earnestly contended by counsel for plaintiff in error, in the argument here, that the order of the court requiring the surrender of this money, or upon failure to do so, that Ryan be confined in jail until he did, was imprisonment for debt. There is to our minds a clear distinction between a decree for the mere payment of money, rendered without any regard whatsoever to defendant’s ability to pay, and without having previously ascertained that he has the money, and an order made in a proper case directing him to deliver up money conclusively shown to be in his possession. Judgments are rendered every day by the courts in favor of plaintiffs against defendants for money due, irrespective of the fact whether the latter are paupers or millionaires. Refusal or failure to pay such judgments is in no sense a contempt of court, and imprisonment for such failure would be imprisonment for debt pure and simple. There is not the slightest reason to apprehend that any court in Georgia will ever attempt, under our present constitution, to imprison a debtor simply because he does not satisfy a judgment for money against him, or that our constitution will ever be so amended as to authorize or even.tolerate such a proceeding. But when our courts are given by an express statute, which is itself in complete harmony with our constitution, as will be hereinafter shown, the power and authority to take possession and control of a debtor’s property and administer it for the benefit of his creditors, and a court in the due and proper exercise of-that authority ascertains conclusively that a debtor actually has money or other assets in his possession subject to his debts, and orders him to deliver up the same, imprisonment for disobedience to such
We will now examine the act of our legislature under the authority of which the court below acted. It is familiarly known as the “insolvent traders’ act” (Acts of 1880-1, p. 124), and was incorporated in the present code, sections 3149a to 3149g, inclusive. Subsequently it was amended by the act of 1889. Acts of 1889, p. 74. As amended, the first section now reads as follows : “In case any corporation not municipal, or any trader or firm of traders, shall fail to pay at maturity any one or more matured debts, payment of which has been properly demanded of such debtor and by him refused, and shall be insolvent, it shall be in the power of the court of equity, under a creditor’s hill to which at least three unsecured creditors, or creditors representing one third in amount of the unsecured debts of such insolvent corporation, trader, or firm of traders, whose debts are matured and unpaid, shall be necessary parties, to proceed to collect the assets, real and personal, including choses in action and money, and appropriate the same to the creditors of such trader, firm of traders, or corporation.”
Section 3149b of the code is in the following language : “The chancellor, under such proceedings as are usual in equity, may grant injunctions, and appoint receivers for the collection and preservation of the assets in the cases provided [for] by this bill [act], and may at any time appoint a master, and take all proper steps to bring the matter to a final hearing; and the fees of said masters shall not be more than ten dollars per day for each day’s actual service.”
It will he seen that the court has the power, and it is its duty in a proper case arising under this act, to collect
As to the power of courts of equity to enforce their orders and decrees, see Code, §§206, 3099, 3237, 4213, 4216 and 4218. In connection with these sections, let it be remembered that whenever the court, by virtue of its authority under the insolvent traders’ act, orders the debtor to turn over his money to a receiver, a duty is
It has already been stated that our insolvent traders’ act is in complete harmony with our constitution. Special reference was had to art. 1, sec. 2, par. 6 (Code, §5023), which reads as follows : “The General Assembly shall have the power to provide for the punishment of fraud; and shall provide, by law, for reaching property of the debtor concealed from the creditor.” This paragraph, it will be observed, is found in the “bill of rights.” Does not this act provide in effect “for reaching property .of the debtor concealed from the creditor ?” That it intends to do so can scarcely be doubted, and the case at bar affords at once a striking illustration of the necessity for such a law, and the propriety and justice of its enforcement. In Hood v. Perry et al., 75 Ga. on page 312, Mr. Justice Hall says this paragraph of the constitution “confers upon the legislature power to provide for the punishment of fraud, and declares in unmistakable and unequivocal terms that it shall provide by law for reaching property of the debtor concealed from the creditor. This fortifies existing legislation upon the subject, which directs the courts to favor the rights of creditors, and to
Construing in pari materia the acts of 1881 and 1885, in the light of these decisions, it is safe to say the legislature in passing these acts had in mind the above specified paragraph of the constitution, and it may be fairly invoked to ascertain the true intent and meaning of both the acts.
It has been urged that the insolvent traders’ act is a harsh one. Even if this be true, it affords no reason to the courts for refusing to enforce it. In spirit and in purpose it is a wise and salutary law. This is evidenced by the fact that the legislature has permitted it to remain upon the statute books for more than ten years, unaltered except by the act of 1889 already referred to, which to some extent modified and softened its provisions. We leave to our law-makers the question whether or not it needs further amendment. Upon them devolves the duty of deciding this question, and we doubt not they will determine it wisely.
We might safely rest our judgment in this case upon the provisions of this act, construed, as we think may rightly be done, in the light of the constitutional provision cited. But in view of the great importance of the questions involved, we will cite and refer to some of the decisions of this court affording instances where
In Cobb v. Black, 34 Ga. 162, an attachment for contempt in refusing to turn over property to -a receiver was upheld as a remedial proceeding, and it is worthy of note that a part of the property in that case was money in the defendant’s hands. In Remley v. De Wall, 41 Ga. 466, which was a bill for account, settlement and dissolution of a partnership, it was held that an order adjudging one of the partners in contempt for refusing to pay over money collected by him and belonging to the firm, and directing his confinement in jail till the same was paid, was proper and did not violate the constitutional Inhibition against imprisonment for debt. In Williams v. Lampkin & Co. et al., 53 Ga. 200, it appeared that the court fined an administrator twenty-five dollars for contempt in violating an injunction, and ordered him to pay over to a receiver $700.00 collected by him from the assets of the estate after the injunction was served upon him, and that he be attached and imprisoned till he paid the same, which action of the court below this coui't sustained. Again, where property was sold in violation of an injunction, the superior court rightly ordered that the seller return the property, or pay into court the purchase money, or in default thereof, be committed for contempt. Thweatt et al. v. Gammell et al., 56 Ga. 98; Thweatt et al. v. Kiddoo, Judge, 58 Ga. 300. On the same line, Robinson v. Woodmansee et al., 76 Ga. 830, is a strong case. See, also, the Tolleson cases, 83 Ga. 499, 85 Ga. 171.
The above citations are by no means exhaustive.
A statute of Alabama, authorizing proceedings supplemental to execution, provided that the plaintiff', after return of nulla bona, might file a bill alleging among other things that “the defendant has property, money or effects which are liable to the payment of the debt, and requiring'the defendant to answer, under oath, what property he has,” etc. The statute further provided that when it appeared to the court from defendant’s answer, or other evidence, that he had money, property or effects as aforesaid, the court might render a decree requiring him to pay or deliver to the register of the court such money, property or effects as the court should determine ought to be paid or delivered, for the payment of the execution, and conferred upon the court power to compel obedience to this decree by attachment and imprisonment for contempt. In Ex parte Hardy, 68 Ala. 303, a majority of the Supreme Court of that State, then composed of three Justices, held that this act was violative of the constitutional provision “ that no person shall be imprisoned for debt.” The question is elaborately discussed by Mr. Justice Somerville, and by Chief Justice Brickell who dissented. We commend both opinions for the learning, ability and research displayed therein, but in our judgment that of the Chief Justice presents the sounder view of the law, and in this conclusion, as will be shown hereafter, we are sustained by the Supreme Court of Kansas. It would expand this opinion beyond l’easonable limits to follow the learned Justices of our sister State through their respective arguments, but we cannot refrain from extracting the following pertinent and forcible language from the opinion of the Chief Justice: “There can be no imprisonment
After imprisonment for debt had been abolished in Tennessee, a statute was enacted providing that “the creditor, where execution has been returned unsatisfied, in whole or in part, may file a bill in chancery against the defendant, and any other person or corporation,to compel the discovery of any property, including stocks, choses in action, or money due to such defendant,” and that “ the court has power to compel the discovery and to prevent the transfer or delivery of the property, and to subject the same to the 'satisfaction of the judgment or decree, whether such property could, if in the defendant’s possession, or with the title vested in him, be levied upon by execution or not.” Hnder this statute it was held in Cresswell et al. v. Smith, 8 Lea, 688, that the proceedings thereby authorized could be instituted against
A Kansas statute authorizing proceedings in aid of execution provided that in such proceedings “ the judge may order any property of the judgment debtor, not exempt by law, in the hands either of himself or any
In State v. Becht, 23 Minn. 411, the relator, a judgment debtor, sought by habeas corpus to be discharged from an imprisonment for contempt imposed upon him for refusing to obey an order made upon statutory proceedings supplementary to execution requiring him to deliver up certain property to a receiver, and it was held the imprisonment was not in violation of art. 1, sec. 12, of the Minnesota constitution declaring: “No person shall be imprisoned for debt in this State, but this shall not prevent the legislature from providing for imprisonment, or holding to bail persons charged with fraud in contracting said debt.” It does not distinctly appear that the property referred to was money, but Berry, J., says : “In the case at bar the imprisonment is for contempt in refusing to obey an order of the court. It is true that the order relates to the debt evidenced by the judgment against the relator, but this in no way alters the fact that the imprisonment is for the contempt, not for the debt. And the contempt does not consist in the relator’s neglect or refusal to pay the debt, but in his disobedience of the order directing him to hand over certain property to the receiver. The fact that the property in question is to be handed over for the purpose of being applied to the payment of the judgment, is in no way important. The commitment is, nevertheless, in no proper sense imprisonment for debt.” The language used would seem to indicate the property detained loas money. Be this as it may, the principle stated is applicable here.
It has been so often held that the payment of alimony in money may be enforced by attachment and imprisonment, and that statutes so authorizing are not obnoxious to constitutional provisions against imprisonment for debt, we do not deem it necessary to cite the cases.
In Frazier v. Barnum et al., 4 C. E. Green (19 N. J. Eq.) 316, upon proceedings supplementary to execution, authorized by statute, it was held that “Rings and jewelry are not wearing apparel, and are liable for debt; and as it may be out of the power of the sheriff to levy on, or take possession of them, being usually worn on the person, a receiver will be appointed and an order made’ for their delivery to him.” The law everywhere protects the person of a debtor from what might amount to an assault by the sheriff, but if he has on his person property subject to his debts, he can be made to deliver it to a receiver. A fortiori, if he has such property concealed elsewhere, he can be made in like manner to surrender it. We have already endeavored to show there is no sound reason for excepting money from a rule which applies to all other kinds of property.
Chap. 126 of the Rev. of 1860 of Iowa statutes is identical, in effect, with the Kansas statute above mentioned. In a proceeding instituted under the provisions of this chapter, one Grace was imprisoned as for a contempt in refusing to obey an order requiring him to deliver up money in his possession to be applied to the satisfaction of a judgment against him. It was held in this case that the statute conflicted with the constitutional clause preserving inviolate the right of trial by jury, but it was also distinctly held that the proceeding against Grace was not one of imprisonment for debt, though the value of the decision as an authority on this question might be regarded as somewhat diminished, because Wright, J., .referring to the provision of the Iowa constitution that “No person shall be imprisoned for debt in any civil 'action on mesne or final process, unless in case of fraud,” said : “The failure of the debtor to surrender his property liable to execution, to the payment of the judgment, might well be such fraud as that, within the meaning of the constitution, he would forfeit his right to claim exemption from imprisonment.” Ex parte Grace, 12 Iowa, 213. The same court, however, in a later case, that of Eikenberry v. Edwards, 67 Iowa, 619 (56 Am. Reps. 360); reaffirmed, without qualification, the doctrine that such proceedings were not violative of the constitutional inhibition against imprisonment for debt, thus rendering the Grace case itself an authority of great weight for our present purpose.
In the case of Comer & Co. v. Coates & Co., 69 Ga., on page 495, Ohief Justice Jackson quite aptly refers to the insolvent traders’ act as “putting a trader in bankruptcy and relieving him from past debts, as far as State legislation can do so.” The act does, in many respects,
This argument might be expanded into an extended discussion of the inherent powers of courts of equity, and an elaborate inquiry concerning the extent to which those powers may be exercised in compelling obedience to their orders and decrees. The subject is discussed at length in some of the cases we have cited, and in the cases and text-books therein mentioned. The opinion of Chief Justice Briekell, already noticed, will be found exceedingly interesting and valuable in this connection. He gives careful consideration to the question whether or not, in the absence of a statute enlarging their powers, courts of equity have jurisdiction to reach and subject property of debtors other than that which is subject to execution at law, which question, in the Case at bar, resolves itself into the inquiry, has a court in Georgia exercising equity jurisdiction the power, without express and affirmative authority by the letter of the statute, to
There is highly respectable authority for the position that when a receiver is appointed to take charge of assets, the title to the property vests in him. In Beach on Receivers, §192, we find the following : “The title of a receiver to real and personal property, . . both in this country and in England, is generally statutory, and does not depend upon any formal conveyance. Where a partnership is in the course of dissolution, and a receiver is appointed of its assets, the receiver takes the whole equitable title to the partnership property without an assignment, and represents the interests in such property of all parties to the suit in which he was appointed.
We do not deem it necessary to enter further into a discussion concerning the powers of courts of equity, outside of statutory aid, to compel the delivery of money to receivers, because, in our opinion, there is very strong reason to support the proposition that our insolvent traders’ act itself authorizes the seizure, through a re
Our judgment in this case does not, as the able and zealous counsel for plaintiff in error contended, inaugurate imprisonment for debt, nor will the direful consequences foreshadowed in their arguments ensue. God forbid that the day should ever come, and we are perfectly .certain it never will, when an honest man in Georgia can be incarcerated simply because he cannot pay his debts ! No constitution will ever so ordain; no legislature will ever so enact, and consequently, no court will ever declare that this may be done. The people of this great State may peacefully pursue their occupations,
We have not examined or considered the evidence in this case for the reason, as stated, that it was brought here in such manner toe could not legally do so. The fault was not ours, and we are in no way responsible for the failure of counsel to bring up the evidence in the way plainly prescribed by law. Accepting then as true, which we are constrained to do, the findings of fact by Judge GrOBER, and having reference to his decision and the recitals therein, without looking into the evidence on which it is founded, substantially and in brief the following would appear: A merchant purchases enormous quantities of goods, and becomes indebted about a million of dollars. lie proceeds to convert these goods, as rapidly as possible, into cash, having more than one hundred clerks, and his daily sales amounting often to thousands of dollars. The sales continue till the day his store is closed up by the sheriff. When the court’s receiver seeks to know what has been done with his assets, and what he has to show for the million dollars of debts, no satisfactory exhibit is made. Checks were destroyed when returned cancelled from the banks; check-books and stubs have disappeared, and cashbooks cannot be found. His bank accounts show that during a period of about sixty days before the store was closed, he had deposited to his credit in three banks $268,604.87. He turned over to the receiver $1,007.15, saying it was all he had. He accounts for the immense amounts shown by the bank accounts by alleging the payment of certain debts amounting to about one fourth of the sum of the deposits, and by averring that the sum of these deposits did not truly represent the amount of money he actually had, because, in order to preserve his credit, he had pursued a system of “kiting” his
We repeat again we have not been permitted to review th'e judge’s findings, nor pass upon their correctness, nor have we any reason to doubt that they are true. Assuming them to be true, which we must do, there was never a plainer case for the application and enforcement of the process for contempt. Otherwise, a merchant who has credit may buy with no purpose of ever paying, turn the goods into money, put it in his pocket, and when called on by the court to deliver it up, defiantly say, “You cannot make me do so, because it would be imprisonment for debt, which the constitution of this great State forbids.” Can the constitution be successfully invoked to protect such transactions ? We think not. Judgment affirmed.