In re Koehler
In re Koehler
Opinion of the Court
In May, 1909, one Baker brought his action against the Standard Truck & Forging Company, a corporation, • the action brought in the circuit court of the city of St. Louis. Service was had on the corporation defendant, as appears by the return of the sheriff to the summons in that action, by delivering a copy of the writ and petition to one Frank G. Koehler, its president. The corporation defendant appeared, demurred, that being overruled, filed an answer, the cause was set for trial; both parties appeared by their attorneys and .introduced witnesses, the defendant, among other witnesses, introducing Mr. Koehler, who testified that he was presi
“Plaintiff further states that he is informed and believes, and has reasonable ground to believe, that the defendant herein has property subject to execution and that among said property is an unpaid stock liability of various stockholders in said defendant company, but that tbe names of said stockholders are unknown to plaintiff.
“Wherefore, plaintiff prays that, in accordance with section 2248 of tbe Revised Statutes of Missouri, 1909, tbis court require said defendant to appear before tbis court at a time and place in such order to be named, to undergo an examination under oath, touching its ability and means to satisfy said judgment.
“Plaintiff further prays that tbis court require defendant to respond to tbis order in tbe person of its president, Frank G-. Koehler, its secretary, William Scbwarting, and such other officers and agents as may be familiar with all or any part of tbe facts, concerning tbe identity of its stockholders, their present residence, tbe extent to wbicb their stock may have been paid and the manner in which payment was made, if any, and all other facts concerning tbe property and assets of tbe company.”
“Whereas the granting of an order in pursuance of said motion was opposed by the defendant and others, necessitating a consideration of' said matter by the court and a continuance from time to time and from court term to court term of said matter; and
“Whereas after a full consideration of said matter this honorable court granted an order in accordance with said motion overruling all objections to the issuing of said order; but,
“Whereas some question has been raised as to the validity of said order on the ground that proper orders of continuance were not entered by the court to maintain the matter on its docket from tiine to time and-from term to term;
“Now, without admitting that the- order-heretofore issued by the court for the examination of defendant in accordance with said previous motion is invalid, but merely in order to place the matter beyond possible dispute, plaintiff' herein renews and again makes his application for examination of the defendant and hereby files this, his motion for examination of defendant, as follows:” .
Then follows the former motion, which is copied into this renewed motion verbatim. This is signed,
It is recited in the petition for the writ of habeas corpus that proof of service of the order requiring defendant,, in the person of its president, to appear and undergo an examination under oath touching the ability of the defendant to satisfy judgment rendered in the cause was filed. This is the order which appears to have been' made by the court:
“It appearing to the court that heretofore, to-wit: on the 10th day of March, 1913, an order was made by this court in' the above cause, requiring the defendant in the person of its president, Frank G. Koehler, its secretary, William Schwarting, and such other officers and agents as may be familiar with all or any part of the facts concerning the identity of its stockholders, their present residence, the extent to which their stock has been paid, and the manner in which said payments were made, if any; and all other facts concerning the property and assets of the defendant company, to appear in this .court and in Division No. 9 thereof, on March 14, 1913, at 10 o’clock a. m., then and there to undergo an examination, under oath, touching the ability and means of the defendant to satisfy the judgment rendered in this cause in favor of plaintiff and against defendant on the 2d day of April, 1912, for the sum of $4983.12, interest and costs; and it further appearing to the court that the sheriff of the city of St. Louis has made return on said order, by delivering a copy of the same to the within named Standard Truck & Forging Company and Frank G-. Koehler, on the 13th day of March, 1913, and that William Schwarting cannot be found in the city of St. Louis; and it further appearing to the court that said defendant and its president Frank G. Koehler has failed to com
Under this order of attachment the petitioner Koehler was taken into custody'--by the sheriff of the city of St. Louis and applied to a judge of this court, in vacation, for discharge under the provisions of the habeas corpus act.
The petition for the writ of habeas corpus sets out, among other matters, that Koehler, the petitioner, is not a party to the action in which Albert S. Baker is plaintiff and the Standard Truck & Forging Company, a corporation, is defendant; that the'only "pretext or" reason for issuing a writ of attachment' against the petitioner’is his failure to appear in the circuit
The sheriff made return to it in due time, setting up the before-mentioned writ of attachment as his authority for holding the petitioner, and the cause was set for hearing before the court.
By leave of court the attorneys representing the plaintiff in the before-mentioned judgment have appeared and filed a statement and brief in support of the action of the circuit court, and the cause has been submitted to us on written and printed arguments of counsel for petitioner and for the judgment creditor, the latter as for the sheriff.
Evidently this proceeding under and by which the petitioner has been attached and is held, is sought to be sustained on the authority of sections 2248, 2249, Revised Statutes 1909. Section 2248 provides, in substance, that when an execution against the property of any judgment debtor issued from any court in this State shall be returned unsatisfied in whole or in part
Referring to bills of discovery, Mr. Justice Story says in the same work (section 317): “One of the fundamental rules of this branch of equity jurisprudence is, that the plaintiff is entitled only to a discovery of what is necessary to maintain his own title; as, for example, of deeds under which he claims. But he is -not entitled to have a discovery of the title of the other party, from whom he seeks the discovery;” while in section 318, Judge Story says that the title and interest in the plaintiff “must be shown to be present and vested; for, where the plaintiff in his bill shows only the probability of a future title or interest upon an event, which may never happen, he has no right to institute any suit concerning it, either for discovery or for relief.”
Another fundamental rule applied in bills of discovery was, that their operation was confined to' the parties to the suit or action.
In 2 Daniell’s Chancery Pl. & Pr. (6 Am. Ed.), *p. 1558, it is said: “A bill of discovery, in aid of proceedings in another court, cannot be maintained against a person who is not a party to such proceedings.”
In Queen of Portugal v. Glyn, 7 Clark & Finnelly’s Rep., 466, it is held that a bill of discovery in aid of a defense to an action, cannot be sustained against a person who is not a party to the record at law; they are permitted for the purpose of obtaining from the adversary at law a discovery of matters, which, being admitted by him, may aid in the defense to the action, but not for the purpose of. obtaining evidence ; a bill of discovery does not lie against a person who may be a witness for the defendant to the action. This was a case in which a bill of discovery was
In Manchester Fire Assurance Co. v. Wykes, 33 Law Times Rep. (N. S.) 142, it is held that a bill of discovery in aid of an action at law cannot be sustained against a person who is not a party to the record, although he might in point of fact be the only person interested in the result of the action: The point was held the same way in Kerr v. Rew, 5 Mylne & Craig’s Rep. 154. The rule was again so stated in Balls v. Margrave, 3 Beavan, 448, it being there held that the practice as to bills of discovery brought in aid of an action at law does not permit any person to be made a defendant to a bill of discovery in aid of an action who is not a party to that action.
Our own Supreme Court in Nancy v. Trammel, 3 Mo. 306 (top page 216, republication 1843), recognizes this same rule as in force when our courts were proceeding under the old chancery practice; that is, a bill of discovery only lay between the parties of record to the cause and did not reach information or documents or testimony in the hands of or possessed by parties other than the parties of record.
It would appear, by examination of these sections of our statute, that this same rule has been followed, and that these sections are applicable alone to, and are not intended by our legislators to reach beyond the parties to the cause; that they do not subject those not parties of record to proceedings under them. Their verbiage surely is susceptible of no other construction. In so many words it is provided that it is the defendant in the judgment and execution who is to be sub-, ject to examination. Here the defendant is a corporation, not an individual. Can we apply these provisions to a corporation by summoning its officers'?
We are cited to section 8054, R. S. 1909, and kindred sections which provide that when the word “per-
That corporations, corporate officers, are not within the words of the statute seems too clear for argument. That this is an omission of the lawmakers is not even apparent, for by the provisions of our laws ample means are afforded for reaching information as to assets of corporations. Furthermore, under our laws, corporations, artificial bodies acting through their officers and boards of directors, cannot hide assets as can an individual. Their acts are generally written in their records; these can generally be reached and produced. So that there is not the opportunity for concealment as in the case of individuals. The petitioner here is in no sense the debtor in the execu
Furthermore this is a highly penal statute. The recalcitrant witness, defendant in the execution, is subject to ■ punishment on attachment as for contempt if he refuses to attend, submit to examination and make answer.
We cannot extend such a statute by construction to anyone not clearly within its letter. These sections of the statute provide a new and extraordinary remedy. They “must be construed strictly, both as to the cases embraced within their terms and as to the methods to be pursued.” [36 Cyc., p. 1188, sec. 8.] They provide for summary proceedings, “and strict conformity to the statute, in the exercise of the jurisdiction it confers, is essential to the regularity and validity of the proceeding.” [36 Cyc., p. 1189, see. b.]
We are referred to no case whatever, under a statute similar to ours, in which it is held that any but the defendant in the execution is subject to the provisions of section 2254. The few cases that have been before our courts construing these sections, namely, State ex rel. Ames v. Barclay, 86 Mo. 55; In re Frederick Knaup, 144 Mo. 653, 46 S. W. 151; Ackerman v. Green, 201 Mo. 231, 100 S. W. 30; Murphy v. Wilson, 84 Mo. App. 178; Ackerman v. Green, 107 Mo. App. 341, 81 S. W. 509, are all cases in which the proceeding was against the debtor in the execution. They all, it is true, happened to be individuals but there is no suggestion whatever in any of these cases that the court has any power to compel by attachment or other process anyone other than the defendant in the judgment and execution, to appear and submit to an examination for the discovery of assets said to be concealed by the debtor and attempted to be put beyond the reach of the debtor’s creditors.
Nor are they intended as a substitute for procuring the evidence that is here sought to be elicited. The very petition or application or motion, which ever it may be called, discloses that the object of the judgment creditor is to have this petitioner, alleged to be an officer of the corporation, disclose the names of the stockholders of the corporation rnd the payments made by them to the corporation on the stock subscriptions or holdings. In some of its aspects the claim of the plaintiff in this execution, the judgment creditor, is very much like that of the plaintiffs in Blanke v. St. Louis-Sonora Gold & Silver Mining Co., 35 Mo. App. 186. There the plaintiff sued on behalf of himself and all other creditors of the defendant corporation, do compel the defendant corporation to disclose the names of its stockholders and the amount paid by them on their stockholdings. Judge Thompson, who wrote the opinion of this court, agreed to by all the members, holds that no such action is maintainable, because the statute- affords a complete remedy for the collection of unpaid subscriptions on capital stock, and it may also be said that it provides in express terms for the manner in which' the names of stockholders in the corporation shall be obtained through the sheriff from the secretary or person in charge of the corporate books. [R. S. 1909, secs. 3004, 3005.]
Nor does it appear by the motion and affidavit filed, or by anything in the record, that in issuing the order the trial court found from evidence before it that there was reasonable ground to believe that the judgment debtor had property subject to execution, as the court is required by section 2249 to find.
Whether the affidavit required by section 2248 may be made by anyone but the judgment creditor, that creditor an individual and not a corporation, is neither considered nor determined; nor do we determine whether the petitioner, as an individual or even as an officer, can be brought in without notice of the intended application, he not being the defendant — -it having been held in Ackerman v. Green, supra, and other cases above cited that the defendant is not entitled to notice; nor do we pass on any of the other points made and raised in the petition, return and by counsel, confining our decision to the propositions expressly covered by us, namely, that this statute does not reach corporate officers and that this petitioner is not subject to its operation, he not being the debtor.
The order of the circuit court directing the petitioner to appear and be examined as a witness and the attachment issued on his failure to do so, to compel him to appear and his arrest under that attachment are. void. The petitioner is discharged.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.