Bank of Orangeburg v. Kohn
Bank of Orangeburg v. Kohn
Opinion of the Court
The opinion of the Court was delivered by
The facts of this case are set out in the decree of his Honor, Judge Witherspoon, which will be incorporated in the report of the case. The Circuit Judge decided that what is commonly known as the two-fund doctrine was not abrogated by sec. 28, art. III., of the new Constitution, as to creditors whose judgments were recovered before the adoption of the said Constitution. Mrs. Matilda E. Kohn, the homestead claimant, appealed upon exceptions which will be set out in the report of the case.
The first question raised by the exceptions which we will consider is, whether the foregoing provision of the Constitution was intended to be retroactive. The section just mentioned contains, amongst other provisions relative to the right of homestead, the following proviso, to wit: “That no waiver shall defeat the right of homestead before assignment, except it be by deed of conveyance or by mortgage,
It is conceded that constitutions, like statutes, are always to be construed as acting prospectively only, unless by express language or necessary implication, it is apparent that the intention was otherwise. It is contended, however, that the two-fund doctrine in force in this State at the time the present Constitution was adopted was inconsistent with the proviso hereinbefore mentioned, and was wholly abrogated by the third subdivision just set out, even as to creditors whose judgments were recovered before the adoption of the new Constitution, or, in any event, when the act carrying into effect the said proviso was approved, to wit: 9th March, 1896 (Acts of 1896, page 190). In other words, it is contended that the said proviso was intended to have a retroactive effect. The words in the third subdivision: “The provisions of all laws which are inconsistent with this Constitution shall cease upon its adoption,” are, in effect, the usual repealing words of a statute, and have no reference to the question whether it was intended to be prospective or retroactive in its operation. The desire to prevent inconvenience, by reason of the changes in the present Constitution, and the provision in the fifth subdivision, that “all writs, prosecutions, actions and proceedings, except as herein otherwise provided, shall continue and remain unaffected by the adoption of this Constitution,” are significant as showing an intention not to interfere with existing rights. In fact, this spirit is manifested throughout the entire Constitution. It is also argued that the words, “no judgment creditor” or other creditor, in the said proviso, manifest an
It is also contended that the two-fund doctrine is a mere incident of the remedy, and that it does not become a right úntil proceedings are instituted in which it can be asserted. For this reason, it is argued that it should be denied in this case, even if the said proviso is not given retroactive force. We cannot sustain this view. It is true, the opportunity to assert the right was not afforded the judgment creditors until proceedings in foreclosure were instituted, but the right to assert the equity, whenever an opportunity was afforded them, existed before the Constitution was adopted.
These views render unnecessary a consideration of the other questions raised by the exceptions.
It is the judgment of this Court, that the judgment of the Circuit Court be affirmed.
Dissenting Opinion
dissenting. While I agree that the constitutional provision invoked by appellant cannot, under the well-settled rule, be given a retroactive operation, inasmuch as no such intention is declared, in express terms, and there is no language used in the provision from which such an intention must necessarily be implied; yet I do not think it is necessary to give such constitutional provision a retroactive operation in order to afford appellant the benefit of its protection. The two-fund doctrine, as it is called, does not grow out of any contract, but out of a mere equity, which only arises out of certain circumstances; and the right to invoke its protection does not arise until the facts occur which give birth to such equity.
Reference
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- Two-Fund Doctrine — Constitution of 1895 — Remedies.—Sec. 28, art. III., of the Constitution of 1895, abrogating the two-fund doctrine as applied to homesteads, is not retroactive, does not apply to judgments obtained before adoption of the Constitution, and is not amere incident of the remedy. Mr. Chief Justice McIver dissents on the latter point.