Welch v. Central San Cristobal
Welch v. Central San Cristobal
Opinion of the Court
delivered the following opinion:
The case at bar is a general creditors’ bill in wbicb a receiver was appointed and steps have been taken to determine the different claims. Tbe matter of the first mortgage does not come np directly. It is now sought to consolidate this suit with No. 941 [ante, 225], which is a suit by the trustee for the first mortgage bondholders. The second suit, that of the United States Mortg. & T. Co. v. Central San Cristobal, is filed in this court as an original suit, while that of Welch & Company was fined originally in the district court for the district of Connecticut, ancillary proceedings taken in the southern district of New York, and the proceedings in this court are ancillary to. the New York suit.
1. There is no question that the court has the power to consolidate the two causes. The consolidation of suits is within the sound discretion of the court. United States Revised Statutes, § 921, Comp. Stat. 1913, § 1541, which applies to suits of equity as well as suits at law. Foster, Fed. Pr. 5th ed. §472. The object of such a consolidation is to save the cost and delay incident to two suits, where the two can be conducted together. “It operates as a carrying on together of two separate suits supposed to involve identical issues,” -and does not make the parties to the one henceforth parties to the other. And the consolidation and decree in the one matter are not necessarily a decree in the other, unless so directed. Toledo, St. L. & K. C. R. Co. v. Continental Trust Co. 36 C. C. A. 155, 95 Fed. 497, 506. It is therefore a question of good judgment rather than of right, and rests within the sound discretion of the court. 2 Foster, Fed. Pr. p. 1546.
3. The question, therefore, is not one of power,, but of dis
A suit is a proceeding between two .parties and involving a certain subject-matter. There can be no consolidation of causes unless both parties and subject-matter are practically the same. Otherwise there will be collateral issues and parties not in interest, with the result that consolidation would do. more harm than good.
In the two cases at bar it cannot be said that either the parties or issues are practically identical.' To the foreclosure suit the general creditors are not parties, nor except in certain instances, not yet determined, do they necessarily claim any subordination to the first mortgage. If any of their claims shall be found to be superior to the first mortgage, they will be protected upon timely application. This can arise only upon the question of priorities of the different claims, which is not yet before the court. On the other hand, to the general creditors’ bill the mortgage trustee is not a necessary party. It is claimed that by intervening he has made himself a party, but on the other hand he denies that he has intervened except for particular purposes. The issues are at present not the same, and not parallel. It is true Welch & Company are parties also to the foreclosure suit, but Welch & Company do not so much deny the validity of the mortgage as that they should pro tanto be subrogated to the rights of the bondholders. Conditions may readily arise in .which the two causes will concern somewhat the same subject-matter, and the court will then consider whether there should be a consolidation.
4. It may well be that, as a matter of convenience, some of the evidence taken by the mortgage trustee or by Welch will
The motion therefore is denied.
Reference
- Full Case Name
- WELCH & COMPANY v. CENTRAL SAN CRISTOBAL
- Status
- Published