58 N.W. 514 | N.D. | 1894
We are asked to issue a writ of certiorari to Hon. Roderick Rose, judge of the district court for the fifth judicial district. It is agreed by counsel that the facts before us are the same facts which would be disclosed by a return to the writ. Our decision, therefore, will not only settle the preliminary question whether the writ should issue, but also the ultimate question whether the order of the District Judge sought to be reviewed by this proceeding was valid or void. An assignment for the benefit of creditors was made by one Reuben P. Jennings, an insolvent, to M. H. Kiff. The assignee accepted the trust, and the assignment was duly recorded. The inventory required by the statute was duly filed, and the necessary bond given by the assignee. The assignor resided, and the assignment was recorded in Barnes County, in the Fifth Judicial District of the state. Subsequently, the relator, a creditor of the assignor, commenced an action against him in the District Court of the Fourth Judicial District. In that action a warrant of attachment was issued, directed to the sheriff of Barnes County, and under this warrant the sheriff levied on the property which was in the hands of the assignee under the assignment. Thereupon Judge Rose, upon the application of the assignee, and without notice, made the following order: “In the matter of the assignment of R. P. Jennings to M. H. Kiff, assignee. Upon reading the affidavit of M. H. Kiff, assignee, and of R. P. Jennings in the above entitled matter, and upon consideration thereof, it is hereby ordered that Hans C. Stenshoel, sheriff of Barnes County, North Dakota, forthwith deliver to M. H. Kiff, assignee, all the stock of merchandise, moneys, and personal property, of all kinds whatsoever, formerly belonging to said Reuben P. Jennings, which he, the said sheriff, took from said M. H. Kiff, the assignee, by virtue of attachments issued out of the District Court of Ransom County, North Dakota, in the cases of The Enderline State Bank v. Reuben P. Jennings, and George R. Newell & Co. v. Reuben P. Jennings; and it is further ordered
The section of the assignment law upon which rests this contention of the learned trial judge is section 4675, Comp. Laws. We quote it in full: “After the lapse of six months from the date of filing his bond the assignee, on motion of any one of the creditors, with ten days’ notice, accompanied by an affidavit of the creditor, his agent or attorney, setting forth his claim and the amount thereof, and that no account has been filed within six months, may be ordered by the court, or by the judge thereof, at any place in his judicial district, to render an account of his proceedings within a given time, to be fixed by the court, or the judge thereof, not to exceed fifteen days. All proceedings under this title shall be subject to the order and supervision of the Judge of the District Court of the county in which such assignment was made, and such judge may, from time to time, in his
Why was it necessary to provide specifically that the property in such a case should become a trust fund, if in all cases the executions of an assignment, however void, placed all the property in the custody of the District Court, to be administered for the benefit of all creditors? The very first section of the assignment law (section 4660) provides that every such assignment is
In Lesher v. Getman, 28 Minn. 93, 9 N. W. 585, the court declared that the property was not in aistodia legis, although the act of 1876, under which the assignment was made, contained just such a provision as is contained in § 4675, Comp. Laws, with respect to the proceedings being subject to the supervision and control of the Judge of the District Court. See § 6 of the General Laws of Minnesota for 1876. In Wright v. Lee, (S. D.) 55 N. W. 931-936, the court had before it for construction our assignment law, it having been inherited by both states from the late Territory of Dakota. That court came to the same conclusion we have reached; and we refer to the very convincing language of Judge. Kellam at pages 936-938. His reasoning is- entirely satisfactory to our minds, and the question has been so ably discussed by him that no further comment is needed. We have carefully examined all the cases that hold that the property is in the custody of the law where an assignment for the benefit of creditors is made, but fail to see that they are in point, the statutes construed therein being radically different from ours, so far as this feature is concerned. We cite them for the benefit of the profession. Lowe v. Kean, (Ill. Sup.) 29 N. E. 1036; Hanchett v. Waterbury, 115 Ill. 228, 32 N. E. 194; Wilson v. Aaron, (Ill. Sup.) 23 N. E. 1037, and cases cited; Shoe Co. v. Mercer, (Iowa) 51 N. W. 415; Bank v. Schranck, (Minn.) 44 N. W. 524; Scott v. McDaniel, (Tex. Sup.) 3 S. W. 291; In re Mann (Minn.) 19 N. W. 347; Blum v. Welborne, 58 Tex. 157; Kingman v. Barton, 24 Minn. 295; Shoe Co. v. Adams, (Wash.) 32 Pac. 92; Mansfield v. Bank, Id. 789, 999; Sabin v. Adams, Id. 793. Our conclusion is that the property was not in the custody of the law, and that, therefore, the order of the District Judge was void, it not having been made in either an action or a special proceeding pending before the court, and having been granted without according to the sheriff or the plaintiffs in the attachment any right to be heard, and without giving either of them notice of the application for the order.
But it is urged that the writ should not be granted, even assuming that the order is void. We are confronted with the claim made by the defendant that the relator is not the party beneficially interested in the writ, and that he has another plain, speedy, and adequate remedy. The contention is that the sheriff, and not the plaintiff in the warrant of attachment, should have applied for the writ. It is true that the sheriff, after a levy, has a special property in the goods seized, and that this special property is commensurate with his duty under the writ. That duty is to hold the chattels seized as security for any judgment which may be recovered in the action, and sell them at public auction to satisfy such judgment. He may vindicate this special interest in the property by suing in replevin, or for the conversion of the property. 2 Freem. Ex’ns, § 268; Drake, Attachm. (5th Ed.) § 291. The plaintiff in the writ cannot maintain such actions. 2 Freem. Ex’ns, § 268; Drake, Attachm. (5th Ed.) § 291. Indeed, it has been held that he cannot bring an action on the case for damages. Barker v. Mathews, 1 Denio, 335. But this case has been questioned, and must be deemed overruled. Howland v. Willetts, 9 N. Y. 170. But it is not at all decisive of the question that the sheriff may resort to those remedies to defend his possession. He is not the real party in interest. He is allowed to defend his possession by those remedies because upon making a levy he becomes answerable to the plaintiff in the writ for the goods attached, if the plaintiff recovers judgment and the attachment is not set aside, or to the defendant therein in case the writ is vacated or the plaintiff fails to recover judgment. He is allowed to defend his possession merely to protect himself against liability to the successful party to the suit. Personally, he has not the slightest intei'est in the mattex-, aside fx'om his fees.
It is also urged by defendant that the relator has another plain, adequate, and speedy remedy at law. The order is not appeal-able. It was not made in an action or a special proceeding. In granting it the District Judge merely exercised, in a summary manner, what he regarded as his control over property which he held to be in the custody of the court through the possession of its officers, — the assignee. But it is insisted that the relator will not be prejudiced by the failure of the sheriff to hold the attached property. He is answerable for it to relator, it is said, whether he keeps or relinquishes possession of it. If it is not forthcoming upon execution, the sheriff cannot justify his failure to sell it because a judge without jurisdiction has ordered it taken from his control, and the relator can sue him for damages and recover. But how is such a remedy adequate when the sheriff and his bondsmen are insolvent, or when the bond has been exhausted and the sheriff is insolvent, or when the creditor’s claim exceeds the amount of the sheriff’s bond and the sheriff himself is insolvent? Should we deny relator relief, there is no certainty that he will be able to collect his claim from the sheriff or his bondsmen. Moreover, such a remedy is not speedy. Instead of the relator enjoying his speedy right to realize the fruits of his judgment by sale under execution, he is compelled to undertake a more or less protracted litigation against the sheriff and his bondsmen to secure his rights. The mere fact that the relator may treat the proceeding as void will not bar his application for the writ. In most of the cases in which the writ has been allowed, the proceeding was utterly void; but it was not intimated in any of them that this would defeat the petitioner’s prayer for the writ. Said the court in Starr v. Trustees, 6 Wend. 564, 567: “It may be said that these parties have their remedy by action, and therefore
It is further insisted that the proceedings are still in fieri, and that, therefore, the application for the writ of certiorari is premature. But the order complained of does finally settle the very matter of which relator complains. By it the learned judge finally decides that the sheriff cannot hold and sell the property under execution issued on the judgment recovered in the attachment suit until the plaintiff'in that suit has attacked and overthrown the assignment, by proceedings in the District Court over which he, the learned judge, presides, instituted for the express purpose of setting aside the assignment, But we hold that
But it is urged that the writ should not be granted, because it will result in no benefit to the relator for another reason. We cannot, it is said, order a return of the property to the sheriff. But, after the order is annulled, the sheriff may retake the property from the possession of the assignee if the lien still exists, or he can secure a new lien by another levy. There will then be no obstacle in his way, as there is at present. In an early Wisconsin case (In re Booth, 3 Wis. 1,) it was insisted that the Supreme Court should not issue certiorari to review the action of a judge in discharging a prisoner on habeas corpus because that court could not order him remanded to custody. In reply to this the court said that “a simple reversal of the order of discharge by this court, without remanding the prisoner, would enable the person from whose custody the relator was discharged to retake the prisoner.” See, also, Welch v. Van Auken, (Mich.) 43 N. W. 371. Whether the sheriff has lost his lien on the property by