Riley v. First National Bank
Riley v. First National Bank
Opinion of the Court
delivered the opinion of the Court.
Some of the preliminary stages of this -controversy will be found to have received consideration in the case of Riley v. Carter and Aiken, trustees, reported in 76 Md. 581. In that case, the decree was neither affirmed nor reversed, but the case was remanded for further proceedings under Art. 5, sec. 36 of the Code, in accordance with the views of this Court therein expressed. After the case had been remanded the Circuit Court of Baltimore City overruled the demurrer to the bill of complaint, and the defendants therein answered the same. At this juncture the counsel for plaintiffs filed orders with the Clerk of that Court directing him to enter the case dismissed as to' all of the attaching creditors, but the same counsel continued in the management of the case representing certain co-plaintiffs, who were general creditors of Nicholson & Sons, and conducted said case to final decree. The legal effect of the manner adopted by counsel in seeking the dismissal of the attaching creditors as parties to said proceeding is a question on this appeal to be hereinafter considered. In the further progress of the case in the Circuit Court of Baltimore City, replications were filed to the answers, and the case was heard upon the pleadings and testimony. The Court, by its decree, declared that the deeds of trust which had been executed by Johns H. R. Nicholson to Carter and Aiken, trustees, were not fraudulent in law or in fact as against the creditors for whose benefit the same were executed, but as against the claim of the permanent trustee in insolvency they were void and inoperative ; and said Carter and Aiken, trustees, were directed to deliver to said trustee in insolvency all the assets and property conveyed to them by said Nicholson, which they did: In accordance with the practice sanctioned by this Court in Buschman v. Hanna, 72 Md. 1, the trustee in insolvency intervened as claimant in all of the attachment suits and procured judgments in his favor, whereby the litigation under the attachments was transferred to the Insolvent' Court for its decision. The trustee in insolvency, in accordance with
The Circuit Court for Baltimore County overruled the objections to the Auditor’s Account and ratified the same, and this appeal is taken from the order of that Court. Many interesting questions arise on this appeal, but it will not be necessary to give all of them consideration. Those which are requisite to a proper determination of the rights of the parties are few, but not free of some difficulty.
It will be proper in the first instance to consider the legal status of those attaching creditors, who, through the intervention of the plaintiffs below, had been made parties defendant in Riley and others v. Carter and Aiken, trustees, by an order of the Court based upon a petition of the plaintiffs, in which it is averred that, in consequence of said attachments, they were necessary parties. Nothing in the progress of the case occurred to render them less necessary parties, so far, at least, as the reasonable purposes of the cause indicate; yet, after having remained parties litigant during the progress of this case on the appeal in 76 Md. 581, and until the demurrer filed to the bill of complaint had been overruled, plaintiffs’ counsel, without the authority
Mr. Daniel, in his work on Chancery Pldg. and Pr. 790, says, “When there has been any proceeding in the cause, which has given the defendant a right against the plaintiff, the plaintiff cannot dismiss his bill as of course ; thus, where a general demurrer has been overruled on argument, Lord Cottenham was of opinion that the plaintiff could not dismiss his bill as of course.” Wiswell v. Starr, 50 Me. 384; Camden and Amboy R. R. Co. v. Stewart, 4 C. E. Green, (19 N. J. Eq.) 69. As having some bearing on this subject, it will be found by reference to the case of Roberts v. Gibson, extr., et al., 6 H. & J. 117 (1826), that the names of certain parties had, by methods somewhat similar to those adopted in this case, been stricken out of the bill, but Kilty,
The order of the Court below, overruling the objections to the audit and ratifying the same, must be affirmed.
Order affirmed with cbsts.
Reference
- Full Case Name
- JOHN H. RILEY and Others v. THE FIRST NATIONAL BANK OF GRAFTON and Others
- Cited By
- 16 cases
- Status
- Published
- Syllabus
- Equity Practice — Dismissing Parties to the Suit — Estoppel by Decree —Insolvency—Assignment for Benefit of Creditors — Attaching Creditors. After certain persons have been made parties, plaintiff and defendant, in an equity suit, by order of the Court, upon a petition of the plaintiff alleging that they were necessary parties, and subsequent proceedings have been had in the cause, the solicitor of the plaintiff has no authority'to file an order with the Clerk directing the dismissal of the bill as to said plaintiffs or defendants, without having previously obtained the sanction of the Court. And when the bill has been so dismissed, without an order of Court, as to said parties, who were fully advised as to the character of the controversy, they are nevertheless bound by the decree finally passed in the cause. After A. had executed an assignment for the benefit of creditors, the appellants, creditors of A., sued out attachments on original process. Subsequently a bill in equity was filed to declare the assignment void for fraud, and for the appointment of a receiver. Upon an order Of the Court the appellants were made parties to the cause. A. was afterwards adjudicated an insolvent, and his trustee in insolvency was also made a party, and claimed the entire assets. After the demurrers to the bill were overruled and some of the defendants had answered, the appellants and other creditors who had sued out attachments against A. were dismissed from the suit by order of the solicitor of the plaintiff, who continued the suit in the name of other ' creditors. The Equity Court finally decreed that the assignment was not fraudulent in fact or in law, but that the title of the trustees under it yielded to the superior title of the trustee in insolvency, to whom the assets of A. were transferred. In the Insolvent Court an account was stated distributing the assets among all the creditors of A .pro rata. Appellants excepted on the ground that the assignment was void and their attachments entitled them to priority, the trustee in insolvency taking the assets subject to the inchoate lien of the attachments. Held, ist. That since the appellants were dismissed from the equity suit without authority, they are bound by the final decree therein. 2nd. That the present claim of the appellants could have been set up in the equity suit, and therefore they are now estopped from making the same in the Insolvent Court; and the Equity Court having determined that the assignment was not fraudulent, the appellants are not now entitled to claim that, by reason of the assignment being void, their attachments gave them‘priority in the distribution of the assets.