Hunt v. Breading
Hunt v. Breading
Opinion of the Court
When the agreement which gives rise to this controversy, was entered into, the interests of all parties who had liens, stood thus: Dales had obtained a judgment against Caruthers on the 17th of July, 1817. Bay less, and Thornton had obtained a judgment against Gregg and Caruthers on the 25th of February, 1820. Breading, the present defendant, had obtained a judgment against Caruthers, on the 8th of March, 1820: and E. and C. Hunt, the present plaintiffs, *had obtained two judgments against Gregg and Caruthers; the one on the 11th of Biarch, and the other on the 8th of Becember, 1820. ' These judgments were liens on the land of Caruthers, in the order of priority in which I have mentioned them. Bay less and Thornton had issued a fieri facias on their judgment, and had seized the partnership effects of Gregg and Caruthers in execution, but at the same time permitted those effects to remain in the custody of the latter; as appears by the sheriff’s return. While matters are in this state, an agreement is entered into between the Messrs. Hunts, Bay-less, the partner of Thornton, and Gregg, the partner of Caru-thers, by which it is stipulated, that the levy under the execution of Bayless and Thornton shall be set aside; that their judgment
It is unnecessary to consider the effect of the rule in equity, which compels a creditor who has a security on two funds, to take his satisfaction out of a particular one of them, in favour of a creditor who has a security exclusively on the other, as I am satisfied, on principles of law, that a judgment creditor who has seized the goods of his debtor in execution, cannot discharge them, and leave his judgment in force as to the land. But there are particular circumstances in the case stated which render it a peculiar one, and which it is worth while to consider. A judgment creditor, who has seized the goods of his debtor, agrees, to set aside his levy and assign his judgment to subsequent judgment creditors, on receiving the amount of his debt from them; while they, on the other hand, receive freta the debtor in payment, as it is said, of the debts originally due them, the very goods which had been levied in satisfaction of the judgment which is assigned to them: and all this circuity of, what is in effect, payment of that judgment, to elude an intermediate judgment which is a lien on the land. To their own rights the plaintiffs unite in their own persons, the rights of Bay less and Thornton; and it is immaterial to the argument, whether all those rights are united to the persons of the plaintiffs, or in the persons of Bay less and Thornton: the clients of ownership, as to this particular judgment, would be exactly the same. If, then, Bayless and Thornton had become assignees of the two judgments of the plaintiffs, could they have released the goods of Gregg and Caruthers, which had been seized in execution on their prior judgment, and at the same instant have received those goods directly in payment of tiieir subsequent judgments, so as to reserve the first as a lien on the land ? No one will pretend it. That would put it in their power to lock up the goods of the debtor, under an execution on their prior judgment, till matters should be in train to seize the same goods in execution for another debt, and thus, by changing the application of their levy, enable them to obtain a preference as regards both the real and the personal estate. But it is said, that consequence could not have been produced in this instance, because the goods were left in possession of the debtor, and there was no obstruction to a levy by subsequent execution creditors. I admit it. But it is impossible not to see, that the whole ai’rangement was intended to produce payment in effect
Judgment affirmed.
Reference
- Full Case Name
- HUNT and another against BREADING
- Cited By
- 8 cases
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- Published