Wright v. Meek
Wright v. Meek
Dissenting Opinion
Dissenting Opinion by
I cannot fully concur in the opimiem. The right ©f a complainant †© transfer his equities im a bill, pendente lite, is tea bradly and generally asserted- Ordinarily, -when a party seeks to take advantage of fraud, in a judgment rendered against Shis land, it is for him alene, as the injured party, to seek the remedy. If the party on whom the wrong or fraud is perpetrated, waives his remedy fey silent aequiesenee, it 4©es not belong to a purchaser under him to revive the asemedy — to prolong the controversy and litigation, unless &e fraud was collusive for the purpose of injuring such purchaser; and hence the common law doctrine, that fraud can only be avoided by him who had a prior interest in the estate affected, and not by him who subsequent to the fraud acquired the interest. 3 Coke, 83, a; 5 John. C., 554; 7 Paige C., 18.
I cannot indorse the doctrine of the opinion in this case, that the right of action against a fraud is transferrable, as
I cannot agree with the opinion: “ that a plea in chancery should never be allowed as a bar if it depends for its basis upon facts -which have transpired since the filing of the bill.” If this be true, then a full conveyance of all interest and right of action from complainant to defendant could not be pleaded in defense of the action.
In all other partienhu-s, I fully concur in the able opinion of my learned brother.
Decree reversed.
Opinion of the Court
Opinion by
John Wright filed a bill ia chancery against Meek and others, charging fraud in the rendition of a decree in partition, and stating among other things, that he had a good and valid title, regularly derived from the Half Breeds of the Sac and Eox Indians, to a
“This defendant by protestation, not confessing or acknowledging all or any -of the matters and things in the said complainant’s bill of complaint, mentioned and contained to be true, in such -sort, manner, and form as the same are therein set forth and alleged, for plea to 'Said bill, says: that since the filing of said bill, that is to say, on the 22d day of February, 1847, the said complainant in consideration of the sum of one hundred -dollars, and of natural love and affection, by certain deed of conveyance of that date, signed and sealed by the said complainant, together with Nancy Wright, his wife, a copy of which is ready to be produced to this honorable court, did bargain, sell and confirm unto James Wright, Alexander M. Wright, Ferguson Wright, Mitchell D. Wright, Joseph T. Wright, Campbell Wright, and Matthew II. Wright, a-nd their heirs and assigns forever, all his interest and estate In and to the land mentioned in the said bill. Therefore this defendant pleads the said conveyance in bar of the said bill, and demands the judgment of this honorabl©’C©urt, whether he shall be compelled to answer the same,”
This plea was allowed by the court to be a good and sufficient plea in bar of said suit. From this decision the complainant appealed. To supply a dimunition of record which was suggested in this court, the following agreement was entered into .by the council of the respective ¡parties: It is agreed that -after the plea filed by the -said Edward Kilbourne was allowed as a good and sufficient bar, the complainant prayed the court below for leave to file a supplemental and amended bill, setting l'ortb that John Wright coareyed.all bis interest in .the land described in bis
The fiicts contained in this agreement form an important part of the record in this case. The first question presented by this record is, was the pleaproperly allowed by the court as a plea in bar ? Although the court erred in not permitting the assignees who had re-conveyed to be made parties complainants, yet as the plea alleged an entire alienation of interest pendente lite, and it remaining unanswered, we were inclined to the opinion that the court were right in allowing it as a bar, not on the ground of champerty, which we will hereafter notice, but because there is not any p>erson who had any interest to prosecute the suit; but on a careful and attentive examination of all the authorities at all analagous to the case under consideration, we are satisfied that, a. transfer of interest either involuntarily, by operation «*?
The case of Massey v. Gilleland, 1 Paige C. R. 644, was-a case where the complainants became- insolvent pending the suit, and assigned all their interest therein to a third person, and the suit was continued for the benefit of such-third person; the chancellor upon application required that-the complainants or assignees should give security for costs to the defendant within a certain time or the bill would be dismissed- True the- assignment in this case was nofr pleaded, but it was presented to the court by petition with a prayer for security of costs. If such transfer of interest operated absolutely as a bar, we think the learned chancellor would have given an intimation of it in his opinion.
The case of Williams v. Kinder, 4 Vesey, 386, we think fully sustains the view we have taken of this question. By a former decree the cause was referred to a master to take
In this case the complainant obtained relief of the Insolvent Act after filing his bill jpendente lite ¿and the bill prayed for a specific performance by which the complainant was to come into possession of valuable real estate. The act unconditionally divested him of all his interest in all his real and personal estate and invested it in the clerk of the peace. A voluntary assignment'could not be more complete. The act was pleaded in bar, and Lord Chancellor Elden in delivering his opinion says : “The defend» ant could not get over the fact that these circumstances did not exist when the bill was filed, and the consequence is tli-at the assignee under die act, clerk of the peace or assignee, nvuof come in by supplemental suit.-”
The plea was accordingly overruled. This is the only adjudicated case we have been able to find in point, and indeed the only one which has fallen under our notice wliere a transfer of interest 'pendente lite¡ either by opera, tion of law or voluntary, has afforded matter for a plea in bar, tlie Lord- Chancellor overruled the plea on the ground that the circumstances did not exist at the time the hill was filed, and consequently the matter contained in the plea having transpired since the filing of the bill, it would not operate as a bar. "We tbink that it may be safely asserted as a correct rule, that a plea in chancery should never be allowed as a bar if it depends for its basis upon
Having shown from the authorities that a transfer of •interest pendente lite either by operation of law or voluntary, will not bar the suit, and therefore should not be pleaded as such; we will now consider the effect of such transfer, and the remedy of the party- affected by it. The .great leading American case on this subject, is that of Sedgwick v. Cleaveland, 7 Paige, 287, from which we will quote at some length. A judgment-creditor’s hill had been filed against Sedgwick, the complainant in this suit, before the vice chancellor, .at the suit -of Thomas and Card, ,and an order for the appointment of a reciever ha¿ been •made in that suit, under which the .complainant, Sedgwick, made a general assignment of all his property, effects, and things in action, both legal and equitable, to the receiver in the suit before the vice chancellor. The counsel for Cleaveland demand the right of the complainant to pro-need in the suit.
Chancellor "Walworth in his opinion says: If this had been a case of an assignment by the complainant under the insolvent act, there could have been no possible doubt that the suit had abated, or rather that it had become so defective that tire complainant could not proceed any further in his own name against the defendant, if the latter had thought proper to raise the objection. The court inquiries the real parties in interest to bring the suit, except uncertain cases when the complainant represents the rights of those for whom the suit is brought, both legally and equitably, t3.s in the case of executory, or trustees, or assignees naday
A bill filed by the assignee for this object, it is true, is in one respect, an original bill; original as being filed by new parties, but its nature is entirely supplemental, and is
Thus in the note to § 349, Story’s Eq. PI., it is said whether a suit in equity is abated by the bankruptcy of the plaintiff as well as defendant, has beezi a matter of doubt. But it seems now, to he thought,.that the weight of authority is, that it is defective nzerely, azzd that the assignee may ho brought forward by supplemental bill. See Cooper Eq. PI. L6, LL; Metf. Eq. PL 65 and notes; and izz the same ziote Lord Bedesdale’s language is: “ If a coznznissiozz of bankruptcy issue agaizzst azzy party to a suit, or lzc is clizchaz-ged as an insolvent debtor, his interest in the subject is, unless he is a mere trustee, generally transferred to h!s assignees, and to bring them before the court a supplemental bill is necessary.” Lord Kedesdale, however, in the same note, holds to a doctrine that was relied upon in the argument; but it will be seezr that be is speaking of the determination of the interest of the plaintiff or defendant, and the property becoming vested in ano’ther person who does not claizxz under hizn, as izi the case of an ecclesiastical person succeeding to a bezzefice, or a remainder man izi a settlement becoming entitled upon the death of a prior tenant, under the sazzze settlement; izr such case the suit cannot be continued by bill of revivor, nor its defects supplied by suppiezuental bill. This is not at all applicable to the case before us, as in this case, the assignees claim under the complainant, Johzz Wright, and the illustration given by his lordship shows the application he intended to make of his proposition. We have thus far treated this case as though no re-conveyance had beezi made by any of the grantors. That re conveyance, we think, clothes the case in a new and different garb, and although there may be apparently some confusion in the books in relation to the proper bill, by which the assignees, when the interest remains alienated, shall be made parties, still when a part only of the interest is transferred, we think there can he no doubt as to
The case, then, stands thus: At the time the objection Was made the complainant owned five-sevenths, and the assignees, Ferguson and Mitchell IX Wright, two-sevenths; the complainant is, by his voluntary act, divested of a part of his interest. lie is still a substantive complainant.
If the view we have taken in relation to the re-conveyance be correct, there is no doubt about the right of Ferguson and Mitchell D. Wright, to be made parties by the supplemental bill, even if there had not been a re-conveyame. We think from the authorities, it is quite as clear that they would have a right to file an original bill in the nature of a supplemental bill, by which they could secure to them-solves all the advantages and benefits which had accrued to the complainant, anterior to the assignment.
Only one question remains to be noticed. It was contended in the argument, with much ajiparent confidence, by the counsel for the defendants in error, that the assignment of the complainant savored of champerty and maintenance, which are forbidden by lav/:
In this country there is but little or no necessity for enforcing the doctrine of champerty or maintenance. The causes which gave rise to the law do not here exist, and according to the ancient maxim, when the reason for the law ceases, the law itself ceases.
The English doctrine of maintenance arose from causes peculiar to the state of society in which it was established. The great reason for the suppression of champerty and maintenance, was the apprehension that justice itself was
í¡y that state of things, instead of invigorating and purifjWg the administration of justice, as the direct remedy for - ?h evils, the laws concerning' champerty and maintenance / ere established as penal regulations, intended to operate upon the parties to these transactions.
It was. a principle of the common law, that a right of action could., not be transferred by him who had the right, to another/ When we seek the reason of this rule, we find it in the motive already mentioned, an apprehension that justice would fail, and oppression would follow, if the right of' action might be assigned. “Nothing,” says Coke, Co. Lit., 114, “ in action "entry or re-entry can be granted over, for- so under color thereof, pretended titles might be granted to. great men, whereby right might he trodden down and the-weak oppressed/ This doctrine, it will be seen, has grown out of the inequality of society in England. The rich, tliegreat and noble, should not come in with their wealth and
In this country, with wise and wholesome laws, enjoying as we do a political and social equality, which never can exist' under the institutions of England, with the administration of justice alike accessible to the poor and the rich, hherc oppression, such as give rise to the doctrine of maintenance and champerty in England, cannot exist, it is almost impossible to conceive liow a case of champerty or maintenance can occur; it is a part of our judicial policy-hot to shut out suitors, or close the temple of justice against those who resort thither for an adjustment of their 'legal rights. Neither should litigation be incited, or improperly or unlawfully 'encouraged, so as to amount to oppression.
To check and prevent this, our statute® in relation to malicious prosecutions and limitations of actions, have been passed. ~We have no statute in this state against champerty and maintenance, as they have in New York and some other states of the Union; neither do we see any necessity for adopting the English law on this subject. The state of society which produced them, and the evils which they were intended to remedy do not exist here. To transfer the right of action, or to maintain the suit of another without having any direct or contingent interest in it, will not necessarily produce mischief or oppression in this country. It may, on the other hand, in particular cases, have a tendency to secure rights and promote the ends of justice.
But if this doctrine of maintenance prevailed here, still the maintenance of the suit of the complainant, Wright, by his sons would not be obnoxious to the law “ when there is consanguinity or affinity between the suitor
The points raised and argued In this case being somewhat new, and, at first sight, a little embarrassing, and the case being one of great importance, we have examined the question at greater length than we might otherwise have considered necessary.
The judgment of the district court, allowing the plea of Edward Enlbourne as a bar to the suit, and refusing to permit Ferguson Wright and Mitchell O. Wright to be made parties by supplemental bill, is therefore reversed, and the cause remanded for further proceedings not inconsistent with this opinion.
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