Hanley v. Wallace
Hanley v. Wallace
Opinion of the Court
delivered the opinion of the Court.
In January, 1822, Hanley filed his bill in the Mercer Circuit, and attached certain slaves, the property of William Lewis, for the purpose of ultimately subjecting them to the payment of one half of several replevy bonds remaining in the Jessamine Circuit Court, then due, in which Lewis and Hanley were co-securities of James Clark, the principal, who was alledged to be insolvent. It was also alledged, as the ground of the proceeding, that Lewis was fraudulently removing himself and his property out of the State, to avoid paying his portion of said bonds, and that if he succeeded, the payment of the entire debt would devolve upon the complainant, without any means or prospect of reimbursement. In April, 1822, a judgment was confessed by Lewis, in the Jessamine Circuit Court, in favor of one Wm. Wallace, for about $139 in damages, and a judgment was also confessed by D. T. Walker as attorney in fact for Lewis, in favor of Wallace, for $318, with interest from the 16th of the same month. On each of these judgments, an execution, (ji. fa.) issued to the Sheriff of Mercer county, on the 20th of April, 1822. And each was returned by him as having been levied on the slaves attached by Hanley. On each of these returns turn successive writs o'f venditioni exponas were issued to the Sheriff of Mercer, the last in April, 1823, and the return on each stated that the slaves were not sold in consequence of the pendency of the attachment. In July, 1823, Hanley filed his bill in the Jessamine Circuit Court, against the two plaintiffs, Walker and Wallace, and others, in which, after stating the grounds of his attachment, and giving a succinct history of the facts and proceedings above noticed, he charges that the two judgments were fraudulently confessed, when nothing, or not so much as confessed was due,
In May, 1829, the injunction of Hanley was .perpetuated, as to all further proceedings against the slaves. ;But this decree was reversed by this Court at the'October, term, 1830, and the cause remanded with directions to ■dismiss the bill without prejudice, (4 J. J. Marshall, 622;) which having been done, Wallace, as surviving, obligee, brought an action of debt upon the injunction bond, and obtained judgment against-Hanley and Wilaaore for $791 50 cents, presumed to be the .aggregate
To' be relieved against this judgment, which was affiraied by this Court at the April term, 1840, Hanley filed the present bill against Wallace and Wilmore, in which, besides reciting the facts and proceedings above noticed, and exhibiting as parts of the bill the various records referred' to, (and which are copied into this record,) he alledges in substance that the attached slaves were appropriated to the payment of Lewis’ half of the replevy bond, for the security of which they had been attached; that the injunction against Wallace and Walker restrained them only from proceeding further against said slaves, which being at the time in the custody of the law, they could not rightfully seize and sell; that they were, therefore, not in fact injured by said injunction, and could not be; that the injunction bond was prepared by the Clerk and executed by Hanley and his security, without, as he believes, reading it or hearing it read, in the faith that it had been correctly prepared, and purported- to bind them no further than, according to law and theJudge’s order, they should have been bound, in obtaining such an injunction; that there was no other consideration for the execution of said bond, but such as the law would imply from the circumstances and attitude of the parties, and that the stipulation in the condition of said bond, binding them to pay the said debts, was not according to law or the order of the Judge, but was inserted ,by mistake and was without consideration, and that as to that the bond-was executed in mistake or ignorance — and on these grounds he prays for a perpetual injunction and for general relief. The answer denies or calls for proof of most of the facts alledged in the bill, and denies all its arguments and conclusions. It does not admit that the attached slaves were appropriated to the payment of the replevy bonds under any decree in the attachment suit, and denies that said suit is yet disposed of. It alledges that the slaves were sold by the complainant or under his authority, and converted to his own use, and that they were sold, or should have been sold, for more than Lewis’ portion of the replevy bonds. It denies that the bond
That Hanley and Lewis were co-securities in replevy bonds to a large amount for Clark, who was insolvent, 'and that Lewis was disposing of his real estate in Kentucky and removing his slaves and personal property from the State, and was about removing himself, when Hanley, shortly before the replevy bonds became due, filed his bill in the Mercer Circuit Court, and had the slaves, then on their way to Arkansas, seized and detained by attachment, are facts which may be assumed upon this record. And on these facts we are oF opinion that the Circuit Court of Mercer, as a Court of Equity, had jurisdiction to attach the slaves, of value sufficient for the purpose, if necessary, of finally paying Lewis’ half of the replevy bonds, or of indemnifying Hanley, should he make that payment. There is no evidence that a greater number of slaves were detained than was reasonably sufficient to: answer the purposes of the attachment. As it does not appear that the attachment was ever discharged, and as the injunction of Hanley against Walker and Wallace was dissolved without prejudice, Hanley is entitled to the benefit of the foregoing facts and conclusions in this suit. The slaves then, having been rightfully attached by a competent jurisdiction, were in .the custody of the law for the benefit of Hanley. If Walker and Wallace, coming in with judgments and executions posterior to the attachment, had been permitted to sell all or any of them under their executions, the slaves thus sold would have remained still subject to the decree which might be rendered in the attachment suit — and so far as they might have been necessary for the satisfaction of such decree,
As Walker and Wallace had no right to proceed to sell the slaves under their execution, while the attachment remained in full1 force upon them all, and as they might in fact have been made answerable fora contempt if they had persisted in- doing so-, it follows that an injunction which would have restrained them from proceeding to sell until the further order of the Mercer Circuit Court, would only have restrained them from a breach of their own duty, and a violation of the attachment, and could, even in case there had been no equity to support the attachment, and it had been finally discharged, have caused them no injury, save that of mere delay and their costs of suit, unless- the property in the mean time had perished or been lost or wasted. And if the attachment had finally prevailed,- whether it took all the property or not, they would not have sustained any damage of which they could have1 complained either in law or in equity, unless deprived of the excess, to which alone they were
To what indemnity then were the plaintiffs in the execution entitled, or with what indemnity does the law furnish them as the condition upon which they may, by such an injunction as this, be subjected to possible loss? In the absence of a positive rule applicable to the case, we answer that as a sufficient security against all damage which might accrue by the improper awarding of the injunction, furnishes a complete indemnity, there is no reason in law or equity for requiring more. And as the damage to which the parties injoined may be subjected, constitutes the sole consideration and proper measure of the indemnity, the bond required as the condition of granting the injunction, should not go further than to secure to the party injoined this indemnity, with costs, and such damages as the law may annex for the delay. All beyond this is without reason or motive in point of fact, and without consideration in point of law. And an injunction bond stipulating for more than a just indemnity should, in equity, be held as a security for such indemnity only. If for instance, A having a judgment for $10,000 against B, should levy upon a small piece of property claimed by C, and C should go into equity to restrain him from proceeding against that property, it would be unreasonable to require that, as a condition of obtaining the restraining order, he should undertake to pay the entire debt in case of failure to sustain the injunction. And if such a condition should be imposed by the Judge who grants the injunction, and the party in obedience to his requisition should execute bond accordingly, the enforcement, according to its letter, of so unreasonable and disproportioned an undertaking would be unconseientious and inequitable; and although it could not be prevented at law would be restrained in equity; where the judgment upon the bond would be held as a security only for what might be justly due, that is, for the damages actually sustained, and those given by law. For a Judge, in granting an injunction to which the applicant is entitled, on the face of his bill, has no right to impose conditions which are unjust and unreasonable, and should he do so, and the party, in order to obtain his injunction, should comply with the conditions imposed, such com
Upon consideration of the stature of 1796, Stat. Law, 809, on the subject of injunctions, and which prescribes the condition of the bond, we are of opinion that it does not apply to an injunction restraining a plaintiff at law from proceeding with his execution against particular property, and leaving him free to pursue his judgment in ■all other modes. Such an injunction does not stay all proceedings in the suit at law, and is not properly characterized as an “injunction to stay proceedings” in the suit at law, when it stays only one particular mode of proceeding therein. We feel authorized to construe the statute strictly, in order to avoid apparent injustice, and ■especially as the strict construction does not impair the efficacy of the statute towards the attainment of, all of its presumable objects. We have no doubt therefore, that ‘the principles just stated, are applicable to this case, and that the Court may, and should regard the bond and the judgment on it, as a mere security for that indemnity to which the obligees may appear to be justly entitled. Nor have we any doubt as to the power of a Court of
Whether the bond was read or heard by the parties who executed it, is immaterial. This was no case of voluntary engagement, and there was no consideration for going beyond the requirements of the law. The bond •m'ust be taken to have been executed according to the requirement of the clerk, and so far as it exceeds the requirements of the law, the excess must be attributed to his mistake and ignorance — of which mistake and ignorance, as well as the necessity of maintaining the power of relieving against iheir consequences, this bond furnishes a signal argument, not merely in its binding the obligors to pay the amount of the executions, without regard to the damage which might actually accrue from the improper awarding of the injunction, but also in the fact, that it binds them to make the payment unconditionally. And although the injunction might have been properly awarded, and might have been finallyperpetuated, surely a Court of Equity would have had power to relieve against a judgment which might have been obtained during the pendency of the injunction; and it has equal power to relieve against' the present judgment, by preventingits execution, except so far as damage may have been sustained by the injunction.
It has been already said, that the utmost possible dam•age which Wallace and Walker could have sustained in consequence of the injunction, must be limited by the ■extent to which, by the injunction, they were prevented from reaching the excess of the value of the attached property, beyond the just objects of the attachment, and appropriating it to their debts. It has also been intimated, that as the injunction was dissolved without prejudice, the decree of dissolution did not conclude Hanley’s equi
1. If at the date of the dissolution of the injunetipn, the attachment was still pending, and the slaves were actually held under it, then as the attachment appears to have been rightful, and therefore of itself prevented Walker and Wallace from legally proceeding against the slaves independently of the injunction, and as the property, and their rights in regard to it, remained in the same condition at the dissolution as it was at the granting of the injunction, it is clear that they did not in a legal sense, sustain any damage whatever from the pendency of the injunction.
2. As the injunction restrained them only from proceeding against the attached slaves, and did not prevent them from abandoning their executions which had been levied upon them, and pursuing other property for the coercion of their judgments, it seems to us that to the extent that, during the pendency of the injunction, they might conveniently have made the amount of their judgments by other executions against other property, so far they suffered no damage from the injunction, and can claim none upon the bond. And it is clear, that if by execution or otherwise, they have made or secured the whole or any part of their judgments, they can claim damages on the bond only in respect of the residue.
3. We are also of opinion, that if the judgments or either of them were fraudulently confessed for demands wholly or in part merely fictitious, or if on other grounds either of the judgments were void, and therefore not legally en-forcible by execution, to that extent no damage can be regarded as having been sustained by the injunction, and none is recoverable on the bond. And as by the act of
4. If at the time when Hanley’s injunction was dissolved, the attached slaves were not still held under the attachment, but had been disposed of under the order of the Court in that suit or otherwise, towards satisfying the objects of the attachment, or for either purposes, and the equity on which the attachment 'was founded has not been.negatived by decree of the same Court; then if the reasonable value of the slaves exceeded the amount necessary for the objects of the attachment; and if by reason of the injunction, or of any improper disposition of the slaves, occasioned by the actor fault of Hanley, Wallace and Walker, or either of them, were prevented from appropriating that excess to the satisfaction of a fair and valid judgment, which could not have been otherwise coerced by execution, by the use of reasonable diligence, and which was not then and is not yet satisfied, the extent to which they or either of them have been thus prevented from obtaining satisfaction of a valid judgment or judgments, is the measure of the damages sustained by reason of the injunction, and for which the bond and the judgment on it should be held as a security. The present injunction should be retained until these damages are ascertained, either by the verdict of a jury on a proper issue or issues submitted to them, or upon such pleadings and process as will enable the Chancellor to ascertain them according to the principles of this opinion. It is sufficient to prevent an affirmance of the judgment, that
Wherefore, the decree is reversed, and the cause remanded, that the complainant may have leave to bring the representative of William Walker before the Court, and for further proceedings consistent with this opinion.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.