Cunningham v. Gushee
Cunningham v. Gushee
Opinion of the Court
These cases are presented upon the bills and respondents’ demurrers, asserting that she has not stated a case that entitles her to the relief prayed for. The essential facts set forth in the first are that this complainant ,was a creditor of one Isaac H. Cunningham, and attached his real estate September 17, 1875, and levied thereon December 10, 1875. Prior to this, the respondent in March, 1875, brought suit against said Cunning
In the. second case the facts set out are the same with the-exception that the respondent Bobbins had an attachment of the individual real estate of Cunningham, as well as of the real estate-held by him as surviving partner, and it is not in this case claimed that the respondent has received any dividend in insolvency which was not credited before judgment entered up. In support of' their respective demurrers, respondents say that the complainant
There have been no proceedings in insolvency with respect to Cunningham’s individual estate.
Doubtless the complainant can avail herself in defence of the •suits at law of all the supposed defects in the attachments or levies of the respondents. If the attachments made by the respondents were defective so as not to create a lien on the individual estate of Isaac H. Cunningham, or if they were dissolved by the representation of the firm’s insolvency and consequent proceedings in probate court, or if they were waived by proof of the respondent’s demands against the firm, so as tobe inoperative against the complainant’s subsequent attachment, she has no •occasion to invoke the aid of the court in equity, for her objections go to the legal validity of the title acquired by the respondents •as against her own.
That the court ought not to interfere in equity to deprive the respondents of any benefit they may be legally entitled to by their diligence in securing their demands by attachment of the individual estate of one of the copartners seems to be clear. The doctrine declared in Ex parte Nason, 70 Maine, 363, is based upon the idea that the creditor of the partnership is entitled to the benefit of his double security, even when the joint and separate estates are both in the hands of the court, acting, as the court always acts in bankruptcy or insolvency proceedings, upon equitably rules and principles. A fortiori when only one of the funds is •under the direction of the court and the court cannot marshal the assets in both, it will not interfere with the regular course of proceeding at law by the creditor to whom the credit of both estates was pledged, against the estate which is not in bankruptcy or insolvency.
It should be remembered that he who owes as a partner is himself just as much a debtor as though the debt was contracted
Clearly the only mode and time for this complainant to claim the aid of the court in marshalling the assets of the partnership and individual estates here found, would have been by putting the individual estate of Isaac H. Cunningham into insolvency in season to dissolve the attachments made upon it. But this she did not apparently regard as a desirable course to pursue. As an attaching creditor she has no equities superior to those whom Isaac H. Cunningham was owing, as a member of the firm of Post and Cunningham. It has often been decided in suits at law that a subsequent attachment by a creditor of the individual partner will not affect the lien acquired by an earlier attachment in favor of a creditor of the copartnership. In all such cases, qui prior est in tempore potior est in jure. Newman v. Bagley, 16 Pick. 570; Allen v. Wells, 22 Pick. 450; Stevens v. Perry, 113 Mass. 380. We are satisfied that no different rule should prevail in equity in cases where the distribution of the partnership estate only is proceeding on equitable principles, in insolvency. There is a manifest want of equity in the complainant’s claim that she should be allowed all the benefit to be derived from an attachment and sequestration of Isaac H. Cunningham’s individual property, for the payment of her claim in full, without regard to diligence and priority as against one who was a creditor of said Cunningham as the surviving partner of an insolvent firm whose estate is distributed in insolvency. The alleged ground that the claims of the respondents might have been secured by an attachment of the partnership property, if tenable under any circumstances, vanishes with the statement of the proceedings for the settlement of the partnership estate in insolvency, which vacated all such attachments in conformity with E. S., c. 81, § § 49, 65, and c. 70, § 6. The principal relief sought by the bills must be denied for Avant of equity; but the demurrers cannot be sustained if
But between parties situated as these are, the complainant not being a party or privy to the judgment, it is so far examinable in equity that we may ascertain whether it was rendered for the proper amount, and if not, may give equitable relief.
Upon the facts alleged in the bill in Gushee’s case, and admitted by the demurrer, the judgment for the respondents should have been diminished by the amount of the dividend received from the partnership estate, and this sum he holds properly only as trustee for the complainant, who, if the facts are correctly stated, would be entitled to the amount of that dividend. For this cause only,
The demurrer in the first case overruled and a respondeas ouster cowarded.
In the case against Bobbins demurrer sustained.
Reference
- Full Case Name
- Susan Cunningham, in equity v. Stephen J. Gushee Same v. Lewis Robbins
- Cited By
- 1 case
- Status
- Published