Merrill v. Lake
Merrill v. Lake
Opinion of the Court
This case comes before the court upon motion to dissolve the injunction, and on demurrer to the bill.
The bill seeks to embrace in one suit the entire affairs of the Portage Canal and Manufacturing Company, and unite *in a single litigation, not only every question which can arise among the stockholders themselves, but the settlement of every question, both in law and equity, which may exist between the company and third persons, and to accomplish this end, not only to exclude the jurisdiction of every other court, but to withdraw matters already j>ending in courts of competent jurisdiction. When we look into the history of this company and discover the multiplicity of questions, in law and equity, to which its conduct and and those connected with it have given rise, between themselves and third persons, running almost .the entire range of legal and equitable remedy, embracing trusts, frauds, conspiracies, usury,
Whether this court, having a regard to the well-known principles of equity proceedings and jurisdiction, and confining itself to the exercise of its powers, without encroaching upon courts of equal power and jurisdiction over the subject matter, can entertain this bill, is the question for determination.
The chief ground for dissolving the injunction is, that it restrains the action of a court of equal and concurrent jurisdiction. It is true that an injunction, to restrain proceedings in chancery is a novelty in equity practice, but whether a case might not arise which would induce the exercise of the restraining power in this mode, which in England is of frequent exercise in a different form, not suited to the organization of our courts, it is not necessary for us to decide. Wo shall confine ourselves to the inquiry, whether a court of equal jurisdiction can enjoin the proceooings of another court of equal jurisdiction. This, I presume, would not be claimed. But so far as the injunction proceeds in this case, ' *it extends to matters over which the court of common pleas has precisely the same jurisdiction as the Supreme Court. If the Supreme Court could enjoin the proceedings of the court of common pleas, the common pleas could equally enjoin the proceedings of the Supreme Court; and if the Supreme Court can take the eases pending in the common pleas and draw them to its own jurisdiction, we see no reason why the common pleas could not, with equal propriety, enjoin the proceedings in. this court, and take possession of this very case. The rule is, where there are courts of equal and concurrent jurisdiction, that the court possesses the case in which jurisdiction first attaches. But it is said that this court does not, by its injunction, act itpon the court, but the parties; but this, in effect, is the same thing. If this court can enjoin the suitors in the court of common pleas, and compel them to litigate a matter pending in the court of common pleas in this court, it is the same thing in effect as restraining the court. No example of this soi’t is to be found in the books. The cases cited to support this proposition from England are cases of courts
*But the question now arises, will the court entertain the bill for final relief?
Want of jurisdiction may be mot by plea, but it is good ground of demurrer if it appears upon the face of the bill. Jurisdiction having attached to certain matters embraced in the bill in the court of common pleas, having equal and concurrent jurisdiction, this court has no jurisdiction over the same subject matter. This appears upon the face of the bill, and is, therefore, good ground of demurrer. But there is another ground of demurrer—the bill is multifarious. This is not denied.
The bill is crowded with distinct and independent matters.
But it is sought to avoid these objections, and sustain the bill, upon the ground that it is a convenient and proper mode to settle up the affairs of the company, and necessary to prevent ruinous loss—that the officers and agents of the company have been guiltyr of mismanagement and fraud in the creation of some of the debts and obligations upon which suits aro prosecuted. But unless the injunction is continued, the nocossi ty for the bill upon its chief grounds ceases; for the only reason of uniting all these interests in one suit is to prevent a sacrifice of the property by sale in parcels. But the bare fact that a person may have a great number of creditors will not authorize the debtor to compel them to litigate their claims in one suit, lest they may obtain judgments and decrees, and seize upon his property in parcels, which may
That chancery could afford the relief sought, would hardly have been expected, had not the interests involved been very large. That there has been fraud and mismanagement on tho part of tho agents and officers of the corporation, may be readily conceived ; and that some of its members may be seeking to plunder its assets, is not perhaps beyond belief; and that the corporation is in
Injunction dissolved, demurrer sustained, and bill dismissed.
Reference
- Full Case Name
- William S. Merrill v. Joseph S. Lake and others
- Status
- Published