Brown v. Bacon
Brown v. Bacon
Opinion of the Court
delivered the opinion of the court.
The record presents two questions for consideration : —
1st. Whether the complainants are entitled to a perpetual injunction against the decree of Bacon, Symington, & Robins, so far as an attempt may be made to enforce it against the property named in the bill; and,
2d. Whether the bill can be maintained as a bill of inter-pleader for the purpose of settling -the claim of Woods & Fitzpatrick, and of Bacon & Co., to the money in the hands of the complainants.
- The facts as shown by the record relating to each of these questions, will be noticed at the proper time.
The complainants claim title to the property in controversy, by virtue of a purchase made at a marshal’s sale in February, 1851, under an execution issued on a judgment in favor of Woods & Fitzpatrick, rendered in the circuit court of the United States at Jackson, in November, 1839, against Thomas Redwood, a citizen of Warren county, in which county the judgment has never been enrolled under the provisions of the act of 1844. On the 7th of March, 1850, Bacon, Symington & Robins recovered a money decree in the superior' court of chancery against the said Redwood, which was duly enrolled in the proper office of Warren county before the levy and sale by the marshal, under the execution issued on the judgment of Woods & Fitzpatrick. After the purchase by the complainants at the marshal’s sale, an execution was issued on this decree, and was levied by the sheriff of Warren county on the property now in controversy. To perpetually enjoin this threatened sale, is one, and indeed the most important, object sought by the bill.
The only question requiring consideration on this branch of the-case is, whether the complainants, by their purchase under the marshal’s sale, acquired a title discharged from the lien of the decree of Bacon & Co. This question would seem to be too clear to admit of-argument; for taking the position of either party as the correct one, the same result is accomplished. If it be true that the lien of the judgment created by the law at the time the judgment was rendered in 1S39, continued up to the
j'~The remaining question will be now considered, that is, whether this bill can be maintained as a bill of interpleader for the purpose of settling the conflicting claims of Woods &
It is certain that the complainants have done nothing making them liable to both parties for the same sum of money. Their object is to make, in the first instance, the proper application of the money, and when this shall have been done, to be discharged not only from the notes held by Woods & Fitzpatrick, but also from the threatened claim of Bacon & Co. growing out of their supposed superior lien on the fund. This being the attitude of the case,, it appears to fall strictly within the general rule on the subject of interpleaders. Under the facts as presented by the record, this is the end of the controversy ; but as both parties desire a decision on the merits, taking the allegations of the bill and the exhibits as true, we will extend our examination for this purpose. J
Woods & Fitzpatrick, going back to the origin of their title to the money, insist that as it is the product of a sale under their execution, issued to enforce a judgment of the United States court rendered in 1839, they have the superior title; in addition to which they allege that the notes of the complainants were taken as money, and a corresponding credit therefor entered on their execution.
Bacon & Co., on the contrary, insist that the judgment of the United States court, falling under the operation of the statute of limitations and of the enrolment act of 1844, ceased in 1846 to be a lien on Redwood’s property, and that their decree, at the date of the marshal’s sale, creating the superior lien, they are entitled to the money.
The facts as shown by the bill are these: Redwood’s land was sold under the execution of Woods & Fitzpatrick early in February, 1851, and purchased by Johnston for the benefit of the firm of Brown & Johnston. On the 17th of the same month, Redwood’s slaves were sold under the same execution, and were purchased by one Harris, as the agent of Woods & Fitzpatrick; but, as the bill alleges the purchase was virtually made for the complainants, in virtue of a previous arrangement or understanding of the parties, in consummating which, Brown
The first inquiry is, whether the enrolment act of 1844, Hutch. Co. 891, embraces judgments of the United States court. It provides for the enrolment of the judgments and decrees of any superior, circuit, district, or inferior court of law or equity holden within this State, provided the same be a court of record. Section 1. Its language in this respect is as comprehensive as that of the first section of the abstract law of 1841. In the case of Tarpley v. Hamer et al., 9 S. & M. 312, this court, remarking upon the abstract law, as it is commonly called, said “that the case then before them depended upon two questions: first, is the act of the legislature passed on the 6th of February, 1841, entitled an act to regulate the liens of judgments and decrees, a constitutional and valid act as respects prior judgments ? and second, if it is so, does it apply to judgments rendered in the federal court? We respond to both of these questions in the affirmative.” We quote this decision for the purpose of showing that the law, the enrolment act, applies to judgments previously rendered by the federal courts. In the case of Bonaffee v. Fisk, 13 S. & M. 682, the court again held that such judgments are clearly embraced by the provisions of the act, and sanctioned the appropriation of money which had been made by the sheriff, under executions from the State courts, to judgments of the United States court, which had been duly enrolled, and which, according to the terms of the 9th section of the act, were entitled to a priority of payment. If these decisions are -to be treated as authority, then the question is settled. They must either be followed or overruled. Looking back to the state of things which preceded the passage of the law, we do not feel the least inclined to pursue the latter course. The law was, at the time of its enactment, no less one of necessity, than it is at present one of convenience and sound' policy, and as such should be in its true spirit administered.
f~The rights of both parties must be determined by the 9th sec
Any other construction of the law would always enable a party, when it was to his advantage, to evade it, and to deprive others of the positive rights which it secures. It is immaterial under whose execution the property of the debtor may be sold, the money, when thus made, must be applied to the judgment or decree, having, in the language of the law, a priority of lien, as evidenced by the judgment roll. The party having such lien, is as much entitled to the money as if the sale had been made under his own execution. The sale destroys the lien as to the property, but it attaches immediately to the money. There are exceptions to this rule, as where the said creditor refuses to give
Having disposed of this question, nothing remains but to give directions as to the judgment to be entered.
Decree reversed, injunction made perpetual, the amount of the two notes to be paid to Bacon & Co., and the notes themselves to be cancelled.
Dissenting Opinion
delivered the following dissenting opinion.
Being unable to concur in the opinion of a majority of the court, it becomes my duty to state the reasons of my dissent, which I will do very briefly.
The bill in this case is based upon the provisions of our statute of 1844, in relation to the enrolment of judgments, and the effect of sales made by execution in this State. It is well known that different rules in this court, and in the United States court, prevail in regard to the question whether or not that statute prevails in the federal court; a difference calculated to produce serious difficulty in the legal rights of parties arising under the conflicting rules. In the case of Tarpley v. Hamer, 9 S. & M., this court held that the law of 1841, requiring abstracts of judgments to be filed in the clerk’s office of any county in the State, in order to be a lien upon the defendant’s property in that county, was applicable to the United States courts in this State; and .in Bonaffee v. Fisk, 13 S. & M., it was held, that where a judgment of the United States court, and also a judgment of the State court, had been enrolled under the statute of 1844, the court of this State, in which the judgment was rendered, upon motion should apply the proceeds of sale made under an execu
This case does not come directly within the provisions of the statute, no money having been actually made by the marshal, and the judgment of the United States court not having been enrolled, as was the case in Bonaffee v. Fisk. The.State court, if the money had been made by virtue of its decree, could not, therefore, have appropriated it to the judgment of the United ¡States court. No question of appropriation under the statute ■could have arisen in that court. Shall we, then, apply the equity of the statute to a case coming not within its terms ? I think such a rule would be unsafe, and that the equity of this ■case would not justify its application, even if admitted as a general rule.
Under the rule, as held by the federal court, the judgment of Woods & Fitzpatrick in that court, being prior in date to the decree of Bacon and others, was the superior lien. If the actual money had been made by the marshal under that judgment, that court would have compelled its payment to the execution issued upon that judgment, and this court could not have interfered with the appropriation. But instead of paying the money, as would have been the case if the execution had taken its regular course, the plaintiff in the execution agreed to take, and did take the notes of Brown & Johnston to themselves, as a substitute for it, and thereupon their execution was returned, and now stands satisfied.
' Though Brown & Johnston supposed they were obtaining
Nor, if the money had been paid on the notes to Woods & Fitzpatrick, could Bacon & Robins recover it from them either at law or in equity, because they have given a good and valid consideration for the notes.
It is not contended that the bill in this case can be maintained as a bill of interpleader proper. But it is attempted to be sustained as a bill in the nature of a bill of interpleader and for
I am of opinion, therefore, that the bill should be dismissed, and that the rights of the parties, which are purely legal, should be left to the appropriate tribunal at law.
Reference
- Full Case Name
- Brown & Johnston v. John Bacon
- Cited By
- 2 cases
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- Published