Tillinghast v. Johnson
Tillinghast v. Johnson
Opinion of the Court
If the garnishee has rendered an account in waiting or has appeared in” the cause and has asked the court to determine whether or not it is chargeable as a trustee of the defendant, then in the circumstances set. out in the question the garnishee is chargeable as trustee of the defendant, in the circumstances stated, in either subdivision of the question presented.
Although from the argument of counsel before this court it appeared that they had a different understanding of the fact, we must presume from the question propounded by the Superior Court that there are at least two sealed «packages involved in the case as to the contents of one of which the garnishee is informed and as to the contents of the other *139 it is ignorant. Otherwise one of the subdivisions presented is a moot question and should not have been certified for the determination of this court.
*140
By statute the jurisdiction of the trial courts in regard to such investigations has been extended from time to time. Under Gen. Stats. 1872, Chapter 197, Secs. 12 and 13, the person making oath to the garnishee’s return might be examined by either party upon written interrogatories, which were to be answered by said person in writing under oath, and the liability of the garnishee was to be determined entirely from the disclosures of the person making such oath. *141 There was at that lime no provision in the statute providing a civil liability .for making a false answer or affidavit in garnishment proceedings. By Pub. Laws, Chapter 673, passed April 12th, 1878, it was provided (Sec. 4) that any person, summoned as trustee of a defendant in a case, making a false answer or affidavit should be liable to the plaintiff in such case for any damages resulting to the plaintiff from such false answer or affidavit. Said Chapter 673 also introduced the following additional provision in garnishment proceedings, now Sec. 18, Chap. 301, Gen. Laws, 1909: “Whenever any person shall be served with a copy of a writ by which he shall be sought 1 o be charged as trustee of the defendant named therein, and such person shall appear and answer to the action so commenced as to whether he is, or is not, a trustee of the defendant, the court in which such action is brought or may be pending, shall determine whether the person so served is properly chargeable as the trustee of the defendant, and if chargeable, to what extent.” This provision was construed in Raymond v. Narragansett Tinware Co., 14 R. I. 310. In that case the garnishee by affidavit, filed in the lower court disclosed funds in his hands. It was sought to have the garnishee discharged on the ground of a general assignment for the benefit of cieditors made by the defendant before the garnishment. Under its interpretation of the provisions of said Public Laws, Chapter 673, Sec. 1, at the time of the trial Pub. Stat. Chapter 208, Sec. 10, the trial court heard oral testimony as to the validity of said assignment and discharged the garnishee. The Supreme Court held that “the court below committed an error in hearing the oral testimony. The proceeding in cases of garnishment is purely statutory. The statute prescribes the mode in which the liability of the garnishee is to be determined when he appears and makes affidavit, namely, by his affidavit, and by his written examination supplementing it, if such examination be taken.” With reference to said Sec. 10, Chapter 208, the court further said: “It provides that when the garnishee appears and answers *142 'as to whether he is or is not a trustee of the defendant/ the court shall determine whether he is chargeable, and if chargeable, to what extent. The purpose of the provision was not to change'the mode in which the liability of the garnishee is to be determined, but only to enable the plaintiff to have him charged in th'e original action. To allow his liability to be determined by extrinsic testimony would be to allow one case to be litigated in another, and that, too, without any pleadings or the right of jury trial. It cannot be supposed that this was intended. In the case at bar the ■only competent testimony before the court was the affidavit of the garnishee, Charles M. Raymond, and upon that the garnishee ought to have been charged.”
At its next session the General Assembly (January session, 1884), passed Public Laws, Chapter 433. Sections 2 and 3 are as follows: “Sec. 2. The answer sworn to by a trustee shall be considered true in deciding how far said trustee is chargeable, but either party to the suit, or any claimant of the estate so attached, may allege and prove any facts not stated nor denied by said trustee that may be material in so •deciding.
“Sec. 3. Any question of fact arising upon such additional allegations may be tried and determined by the court ■or justice, and in the court of common pleas and in the Supreme Court the same may be submitted to a jury in such manner as the court shall direct.”
Chapter 1432, Sec. 1, Pub. Laws, January session, 1907, now Chapter 301, Sec. 32, Gen. Laws, 1909, still further ■extended the scope of the hearing before the lower courts. ■Sec. 1, in part provides as follows: “Section 1.. Section •578 of the ‘ Court and Practice Act’ is hereby amended so as to read as follows:
“ 'Sec. 578. In any action where money or other property shall have been trusteed in the hands of a person, firm, or corporation, the person signing the garnishee’s answer may be summoned by either party at any time before final judgment and subjected to examination and cross examination *143 upon all matters relating to or connected with the facts set “ forth in such answer, and evidence may be introduced to contradict the testimony of such person.’ ”
In Chapin v. Lapham, 20 Pick. 467, Shaw, C. J., lays down, what appears to us to be a reasonable rule and one of general application, that in its discretion the court may require a witness to examine memoranda or papers in his possession in order that he may qualify himself to give testimony material to the issue and essential in the determination of the matter before the court. The court said: “The *145 question then is, whether a witness who has the means of aiding his memory by a recurrence to memoranda or papers in his power, can lawfully be required to look at such papers, to enable him to ascertain a fact with more precision, to verify a date, or to give more exact testimony than he otherwise could, as to times, sums, numbers, quantities and the like. There may be cases undoubtedly, in which it would be a great hardship upon a witness to require him to qualify himself, so to speak. . . . But there are other cases, in which it would lead to an'entire perversion and fruslration of the purposes of justice, if a witness could not be required to refresh his memory, and prepare himself to testify, by an examination of papers in his own custody or power, or when they are produced at the trial.”
In the case of a garnishee our statute requires that he shall disclose to the court what estate of the defendant he had in his hands or possession at the time of the service of the writ upon him as garnishee. If he has in his possession a sealed parcel or a locked safety deposit box belonging to the defendant and after service of the writ upon him as garnishee he has not informed himself as to the contents thereof, and if, in an examination before the court to determine his liability the garnishee is called as a witness, the court is not powerless to direct the witness to do what the court’s officer, who has attached or levied upon a similar parcel or box, might do in making his inventory, and may direct the witness to qualify himself to give testimony which shall enable the court to determine the matter then before it. Chapter 301, Sec. 27, Gen. Laws, 1909, provides that all costs and charges which a person, copartnership or corporation shall incur as garnishee shall be paid by the plaintiff, thus reimbursing the garnishee for any expense to which he may be put in opening the parcel or box and examining the contents thereof. In Trowbridge v. Spinning, 23 Wash. 48, it was sought to attach the property of the defendant in the hands of a safety deposit company by process of garnishment. The garnishee in its answer disclosed that it had no property of the defendant in *146 its control unless such property was in a locked deposit box in its vault, which box it had rented to the defendant. The court considered the following provision of the Washington code: ‘ ‘ Should it appear from the garnishee’s answer or otherwise that the garnishee has in his possession or under his control, or had when the writ was served, any personal property or effects of the defendant liable to execution, the court shall render a decree requiring the garnishee to deliver up to the sheriff on demand such personal property or effects or so much of them as may be necessary to satisfy the plaintiff’s claim. § 5404.” The court said: “It is true that it was impossible for the garnishee to answer specifically as to the contents of the box. The court, however, under § 5404, supra, is authorized to determine from the answer or otherwise the effects under the control of the garnishee liable to execution. Under the broad provisions of this section, the court could inquire into the contents of the box by causing the defendant to be examined as a witness, and might even require an inspection of the contents, to the end that the effects liable to execution should be'delivered to the sheriff.”
In support of its contention that it is not chargeable, in the circumstances set out in the first question certified, the garnishee has cited Bottom v. Clarke, 7 Cush. 487. In that case a bank was summoned as garnishee of the defendant. In its answer the garnishee disclosed that the only property of the defendant in its hands was contained in a small locked trunk, which the bank had permitted the defendant to place in its vault for safe keeping; that it had no knowledge of the contents of the trunk. Under a statute, similar to the former Rhode Island statute, the court held that the garnishee “must be charged or discharged on the answer which has been filed, and on that alone. That answer does not show that the trunk contained any attachable goods, effects or credits of the principal defendant.” The court held that the garnishee should be discharged, not, as we understand from the opinion, because the trunk was locked, but because in the state oí the Massachusetts law the court was unable to inform itself as to the contents of the trunk and *149 hence could not determine the liability of the garnishee. In the later case of Adams v. Scott, 104 Mass. 164, the court held that money of the defendant in the possession of an express company, delivered to it in a sealed package, was subject to garnishment. See, also, Hooper v. Day, 19 Me. 56; Loyless v. Hodges, 44 Ga. 647.
Each subdivision of the first question certified is answered in the affirmative.
The second question certified is propounded by the Superior Court only in the event that either subdivision of-the first question is answered in the negative and therefore said second question is not considered by us.
This question fails to state where, by whom or under what conditions, said safe deposit boxes are kept, but we must consider, as was assumed in the argument of counsel that said boxes are kept in the vault of the safe deposit company, and in accordance with the well known course of business of such companies that the boxes themselves are subject to the general control of the garnishee, that access to them can only be obtained by the defendant at such times *150 and under such, restrictions as the garnishee inposes and that at all times said boxes are subject to the protection and the care of the garnishee. It appears from the terms of the question that the court has been able to determine what are the contents of the boxes; and that as to all the boxes involved the contents are of an attachable nature. The only essential difference between this question and the first question, already considered, is that in the first question the sealed parcels are stated to be in the possession of the garnishee and in this question it is not stated that the boxes are in the possession of the garnishee. If these boxes are in the vault of the garnishee under the conditions as we have assumed them to be, we find no difficulty in deciding that the boxes themselves, whatever may be determined as to the contents thereof, are in the hands and possession of the garnishee in the sense in which these words are used in our statute. The garnishee or trustee has the exclusive actual physical custody and control of these boxes against all persons other than the defendant and its control is only subject to the right of the defendant to open the boxes in accordance with the regulations of the safe deposit company, to examine his property, to remove it therefrom or to place his property therein.
If these boxes are in the possession of the garnishee, as we find them to be, then the condition of the contents thereof, with regard to their possession by the garnishee, does not differ from that of the contents of the sealed parcels considered in the first question. In the case of the parcel the owner sought to guard its contents from examination by others by sealing the parcel. • The intent of the owner, in that respect, could be frustrated only by the use of force in removing the seal or in some other manner opening the parcel. After the contents of the safe deposit boxes had been protected in the manner set out in the question the owner’s purpose might be defeated by the use of the same kind of agencies as those required to open the sealed parcel, only by a greater degree of force. In the case of these boxes *151 a slightly complicated method has been adopted for securing their contents against access; but the method is immaterial. The position of the contents, in regard to the question we are now considering, does not differ from that of the contents of a box or trunk locked and placed by its owner for safe keeping in the vault of the garnishee, which box or trunk might be opened directly by the use of one key, retained by the owner of the box. If the receptacle is in the hands or possession of the garnishee, as those words are used in our statute, then the contents of such receptacle, though the owner has attempted to bar access to them, are also in the garnishee’s hands or possession and they are subject to attachment in its hands by garnishee process. It was so held as to a sealed parcel, Adams v. Scott, 104 Mass. 164 sufra; as to locked trunks and nailed boxes, Hooper v. Day, 19 Me. 56, supra; as to a box nailed up, Loyless v. Hodges, 44 Ga. 647, supra.
The cases are not numerous, which decide as to who has possession of the contents of a safe deposit box or safe, rented by a safe deposit company to its customer, and held and guarded by it in its vault, when the box or safe is locked by the owner of said contents. In the somewhat early case of Gregg v. Hilson, 8 Phila. 91, decided in 1871, Sharwood, J., sitting alone in a motion court, in hearing upon a motion for a rule held: that the contents of a safe rented by a safe deposit company to a customer and locked by him, “are in the actual possession of the renter of the safe,” and are not subject to attachment by garnishee process. Upon the authority of this ruling and the opinion in Bottom v. Clarke, 7 Cush. 487, supra, a number of textwriters have enunciated the principle that property so situated in a safe deposit box cannot be reached by garnishment proceedings. In later cases, however, a number of courts, in carefully considered opinions, have approved what appears to us to be the sounder doctrine as to the relations existing between safe deposit companies and their customers, and as to the posi *152 tion of these companies with reference to property placed by customers in the safe deposit boxes.'
In considering the question of possession, though not with reference to garnishment, the court said in Lockwood v. Manhattan Co., 50 N. Y. Supp. 974: “It is urged upon the part of the defendant that it was not the bailee because it was not in possession of the plaintiff's property. If it was not it is difficult to know who was. Certainly the plaintiff was not, because she could not obtain access to the property without the consent and active participation of the defendant. She could not go into her safe unless the defendant used its own key first, and then allowed her to open the box with her own key; thus absolutely controlling the access of the plaintiff to that which she had deposited within the safe. The vault was the defendant's and was in its custody, and its contents were under the same conditions. As well might it be said that a warehouseman was not in the possession of silks in boxes deposited with him as warehouseman, because the boxes were nailed up and he had no access to them.''
In National Safe Deposit Co. v. Stead, 250 Ill. 584, the court said: “We think it clear that where a safety deposit company leases a safety deposit box or safe, and the lessee takes possession of the box or safe and places therein his securities or other valuables, the relation of bailee and bailor is created between the parties to the transaction as to such securities or other valuables, and that the fact that the safety deposit company does not know, and that it is not expected it shall know, the character or description of the property which is deposited in such safety deposit box or safe does not change that relation, any more than the relation of a bailee who should receive for safe-keeping a trunk from a bailor would be changed by reason of the fact that the trunk was locked and the key retained by the bailor, although the obligation resting upon the bailee with reference to the care he should bestow upon the property in the trunk might depend upon his knowledge of the contents of the trunk. *153 Obviously the bailee would be in possession of the trunk .and its contents, and no amount of argument would demonstrate that, while the trunk was in possession of the bailee, its contents were in the possession of the bailor, solely by xeason of the fact that the bailor of the trunk retained the key, and the bailee did not have access to the trunk. We .are of the opinion that the relation of bailee and bailor exists between the appellant and its lessees, and that the deposit of the securities and valuables by its lessees in rented safety deposit boxes or safes is a bailment, and that the law applicable to bailments generally applies to such transaction and to such property.”
In Trowbridge v. Spinning, 23 Wash. 48, the following facts were stated in the opinion of the court: “The garnishee defendant, the National Bank of Commerce, answered, .stating that the respondent had in its vaults a safe deposit box, to which there was a private and a master’s key, the private key being in the possession of the respondent and the master’s key in the possession of the garnishee defendant; and to open said box it is necessary, first, for the master’s key to be used; second, for the private key to be used; that the contents of the box were unknown to the garnishee -defendant. To the vault there was a vault door, locked by a time combination, which was under the exclusive charge of the garnishee defendant.” The lower court discharged the .garnishee. The Supreme Court said: “From the conclusions of law, the findings of fact, the evidence, and the brief of the garnishee, it is evident that the only question considered by the court below and passed upon, was whether the garnishee had control of the effects in the box. If we are correct in this, we are of the opinion that the court erred in holding that the garnishee did not have control of the contents of the box. At any time on the request of the defendant the garnishee could put it within the power of the defendant to remove the contents of the box, and the defendant could not remove the contents without the consent and active co-operation of the garnishee. As against the *154 defendant, then, the garnishee had control of the contents of the box.” The Supreme Court held that the lower court erred in discharging the garnishee.
In Washington, etc. Co. v. Susquehanna Coal Co., 26 App. Cas. D. C.) 149, the court said: “Property of a defendant in a safe-deposit box of a trust company is either in the possession of the defendant, or in the possession of the trust company. If it is in the possession of the defendant, under the Code, it appears liable to attachment and execution. If it is in the possession of the trust company, such company may be garnished therefor, as in possession of personal property of the defendant capable of being seized and sold on execution. A mere device to guard from intrusion the defendant’s property in the vault of the trust company neither divests the defendant of his property, nor releases the company from its charge of defendant’s property. There is no magic in two keys, a master key and a customer’s key, to put property belonging to a defendant in an attachment beyond the reach of creditors and the process of the courts.
“If there were a doubt respecting the term ‘possession’ there can be no doubt that property deposited by a defendant in a safe-deposit box of a trust company is the defendant’s property in the hands of, and in charge of, the trust company; and, by the terms of the Code, the trust company is liable to be garnished therefor.”
Each subdivision of the third question certified is answered in the affirmative.
The fourth question certified is propounded by the Superior Court only in the event that either subdivision of the third question is answered in the negative and therefore the fourth question is not considered by us.
The papers in this cause are sent back to the Superior Court with our decision certified thereon.
Reference
- Full Case Name
- John A. Tillinghast, Trustee v. Frank W. Johnson.
- Cited By
- 21 cases
- Status
- Published