Penniman v. Freeman
Penniman v. Freeman
Opinion of the Court
This case presents the single question, whether the surrender of property, held under an attachment by an officer, to an assignee appointed under the insolvent laws, upon demand made, while the assignment is in force, relieves the officer from further responsibility and liability on account thereof to the attaching creditor, in case the proceedings in insolvency are subsequently annulled for irregularities and defects therein. This is a new question, in the determination of which but little, if any, aid can be derived from authorities. The decision of it must depend mainly upon the true construction of the provisions of the insolvent laws, concerning the dissolution of attachments, and the relative rights and duties of attaching creditors and assignees thereby created. By § 5 of the St. of 1838, c. 163, it is enacted, among other things, that an assignment made under said act shall vest in the assignees all the estate of the debtor, “ although the same may be then attached on mesne process as the property of the said debtor,” and “ shall be effectual to pass all the said estate, and dissolve any such attachment.” By the same section, it is also provided that, in all suits prosecuted by assignees to recover any property or right of the debtor, “ the assignment shall be conclusive evidence of their authority to sue as such assignees.” Under these explicit provisions, it would seem very clear that an officer holding property under attachment would have no legal right to retain it in his possession, as against an assignee claiming under an assignment regular and valid on its face. The attachment is dissolved by force and effect of the assignment; the title to the property attached is thereby vested in the assignee ; and the assignment is itself conclusive evidence of his right to sue for and recover the same. To a title founded on the <-xpress provisions of the statute, and proved by evidence which the same statute makes conclusive, the officer can maintain no valid defence. In a suit against him by the assignee, he is not permitted to deny the validity of the assignment, or to inquire into the regularity of the proceedings in insolvency, or *kc jurisdiction of the commissioner by whom the assignment
The case at bar is distinguishable from those cases where an officer has been held liable to subsequent attaching creditors for the misapplication of a debtor’s property, held under attachment, in satisfaction of executions founded on fraudulent claims. In such cases, the officer acts at his peril. He is not compelled to levy the executions without inquiry, nor without receiving indemnity against any risk which he might incur in the service
So too, for the same reason, the principle, by which an office* is held liable for his acts under process issued by a court or magistrate without jurisdiction, is inapplicable to the present case. Such proceedings are not conclusive as to any act done under them, but are open to investigation and inquiry. And even in such cases the officer is protected from liability, if the process is regular on its face, and does not disclose the want of jurisdiction. Whipple v. Kent, 2 Gray, 410.
Besides ; the suggestion, that the assignment in this case was void ab initia, because the commissioner had no jurisdiction of the case, rests on a misapprehension of the facts. The insolvent proceedings against Hammond were not set aside on the ground of an absolute want of jurisdiction of the case on the part of the commissioner of insolvency. In this respect it was unlike the case of Claflin v. Beach, 4 Met. 392, where the insolvent debtor was not a resident in the Commonwealth. In the case of Hammond, on the face of the proceedings, it appeared that Hammond was, at the time of the application, last resident at Boston; and it was not determined by the court, on the petition to set aside the proceedings, whether his domicil was in the county of Suffolk or Norfolk. For aught that appeared, the commissioner had jurisdiction of the case, the parties and the subject matter; and the proceedings were set aside on the ground that no proper notice of the petition of the creditor, on which the proceedings were commenced, was ever served upon the debtor in compliance with the statute. Penniman, petitioner, 15 Law Reporter, 31-33. It would seem therefore that the assignment was voidable, and not void. Indeed, such is the judgment of the court, declaring that the proceedings were voidable by an attaching creditor. It is not therefore a case where the commissioner had no jurisdiction, and acted wholly without
Judgment for the defendant.
Reference
- Full Case Name
- George Penniman v. Watson Freeman
- Status
- Published