Merrick v. Southern Publishing Co.
Merrick v. Southern Publishing Co.
Opinion of the Court
Statement of the Case.
Relator brought a suit, which was numbered 118832, in the civil district court on a promissory note, made by the Southern Publishing Company, Incorporated, to its own order and by it indorsed and also indorsed by D. C. O’Malley, praying for judgment against the maker and indorser in solido, and it was allotted to division C, the judge of which division made an ex parte order that it be transferred to division B, and thereafter denied plaintiff’s request and motion to vacate his order, on the ground that there was pending in division B a proceeding by James J. Costello and certain interveners, including relator, suing on the note hereinabove mentioned, for the appointment of a receiver to the Southern Publishing Company, and 'that it was therefore proper and competent, under the law and the rules of the court, to transfer plaintiff’s suit to that division, and thereupon relator made this application for the writ of mandamus, directing the judge, made respondent, to vacate his order and proceed with the trial of the case, to which application the learned judge makes return as follows:
“Respondent * * * in ordering the transfer * * * acted in strict accordance with law and with the rules of the civil district court. The receivership proceedings, instituted against the Southern Publishing Company, Incorporated, were * * * pending and on trial * * * in division B. In those proceedings, E. H. Merrick was an applicant for the appointment of a receiver, and based his claim on his alleged rights as holder of two certain promissory notes, drawn by said company and indorsed by D. C. O’Malley. Merrick thereafter brought the suit allotted to division C, and which respondent ordered to be transferred to division B. This latter suit was also based on the identical notes on which Merrick had depended as alleged creditor in the pending receivership proceedings. In my opinion, the second suit on those identical notes, if it was necessary or proper to bring the suit at all, could only be tried properly by the judge of division B, who, having started the trial of the receivership proceedings, already had under consideration before him the merits, or lack of merits, of Merrick’s claim on said notes. Further, it seems to me that the second suit of Merrick on these notes was properly transferred to division B for the following reason: The rules of the civil district court provide that, where there' is a common fund under administration, all suits relating thereto shall be triable before that division of the court having jurisdiction of said fund. In this case, the liquidators of the Southern Publishing Company, Incorporated, have been judicially confirmed and recognized by the judge of division B, and it is in that division of the court that the liquidation of this corporation will take place and the funds of that liquidation be distributed. A suit against that company, such as was Merrick’s proceeding on his promissory note, is evidently a demand against the corporate funds in liquidation, and, in my opinion, is properly transferred to that division of this court which controls the distribution of that fund. The rules of court upon which respondent relies are annexed to, and made part of, this return.”
The particular rule thus annexed and relied on is section 10 of rule 8 which, reads:
“Whenever, by reason of the pendency of two or more suits, by creditors claiming as against a common debtor, conflicts may arise as between such creditors, whether as to the validity of their claims, or to the legality of the seizure*345 levied, or as to the order in which they shall be paid, and there is a common fund which is the subject of such controversy, all such suits shall be assigned to the division first acquiring jurisdiction of such fund.”
The Constitution of 1898, by which the question at issue is governed, art. 134, provides that all cases, after being filed in the civil district court, shall be allotted or assigned among the judges and—
“Except as herein otherwise provided, each judge, or his successor, shall have exclusive control over every case allotted or assigned to him, from its inception to its final determination in said court. In case of a vacancy in the office, recusation, absence or disability of a judge to whom a case has been allotted or assigned, or in case such action is deemed advisable in the proper administration of justice, or of the business of the court, such case may be reallotted or reassigned,” etc.
Article 136 further provides that:
“The judges of said civil district court shall be authorized to adopt rules, not in conflict with law, regulating the allotment, assignment and disposition of cases, the order in which they shall be tried, and the proceedings in such trials,” etc.
Opinion.
It is therefore ordered that the rule ni.si herein issued, as also this application, be dismissed at relator’s cost.
Reference
- Full Case Name
- MERRICK v. SOUTHERN PUBLISHING CO., Inc. In re MERRICK
- Status
- Published
- Syllabus
- (Syllabus by the Court.) 1. Courts &wkey;>50 — Jurisdiction — Common Fund. The mere application, allotted to one of the divisions of the civil district court, for the appointment of a receiver to a corporation, does not create a “common fund” of which such division thereby acquires jurisdiction, within the meaning of the rule of the court which provides that pending suits by the creditors of the corporation shall be assigned to the division first acquiring jurisdiction of such fund. [Ed. Note. — For other cases, see Courts, Cent. Dig. §§ 174-176.] 2. Courts Where suit is brought in the civil district court against a corporation the affairs of which are in process of liquidation, in one of the divisions of the court, and another alleged debtor in solido, an order by the judge of the division in which the suit is brought, assigning it to the division in which the liquidation is pending, is authorized by rule of the court, and does not operate illegally to the prejudice of the plaintiff in such suit. [Ed. Note. — For other cases, see Courts, Cent. Dig. §§ 174-170.]