Searight v. Payne
Searight v. Payne
Opinion of the Court
Upon the issue of former suit pending, it was referred to the clerk and master to examine and report whether the two suits were substantially the same. His report was, that while the parties in this cause were parties to the former suit, and the demands sued upon were the same, yet the two suits were not substantially the same, but essentially different. The defendant has excepted to the report upon the ground that the suits were between the same parties, upon the same demands, and for the same purposes. Under these circumstances, I have felt bound to examine the two bills, and compare them.
The first bill was filed by a number of persons claiming to be creditors of the Worley Furnace Company, and among others by the present complainants, against the said Worley Furnace Company, a body corporate chartered by the General Assembly of the State of Tennessee, J. M. Nash, J. C. MoCrory, A. B. Payne, John Trenbath, and all other the stockholders of said company, and James Knight, M. B. ■Howell, clerk and master of this court, and Isaac Litton, receiver. It alleged that the defendants, except Knight, Howell and Litton, were, with one Jones, supposed to be dead, the stockholders of said Worley Furnace Company, and had been operating the furnace for some years in Dick
The present bill is filed by Searight, Thornton & Co. alone, on the same claims sued upon in the first bill, against the Worley Furnace Company, A. B. Payne, John Trenbath, J. C. McCrory, W. F. Foster administrator of J. M. Nash, and S. E. Jones, the last of whom seems to have come to
An amended bill Ayas filed setting up other claims against
The result of the analysis of the two suits is :
1st. That the complainants are parties to both and upon the same demands.
2d. That the defendants are the same. Jones, the only stockholder specifically named in the last bill in addition to stockholders named in the first bill, having in fact been made a defendant to such first bill under the general designation of “all other stockholders of said company.”
3d. The object of the two suits is the same so far as that object is to reach the stock subscribed but never paid in by the defendants.
But here the identity of the two cases ceases. The main object of the first was to reach the property of the company, by setting aside the deed of trust, and subjecting the unpaid stock due by the stockholders to the company.
The main object of the second bill, is to charge the defendants personally with the complainants debts, upon the grounds of fraudulent concealment, fraudulent representations, and fraudulent conduct; and because the purchase of the goods from the complainants and the selling them by retail was not a corporation purpose, but outside of the charter, and made the defendants liable as partners.
The clerk and master is clearly correct therefore in sayirfg that the two suits are not substantially the same. The plea is not, consequently, true as alleged. But it is true as to so much of the present bill as seeks to hold the defendants liable as stockholders for unpaid stock. Unlike a demurrer, a plea may be bad in part and not in the whole. Story Eq. Pl. § 692. Derby v. Duke of Athol, 1 Ves. 205; Dormer v. Fortescue, 2 Atk. 282; French v. Shotwell, 5 John Ch. 555, 562. This is true only as to the extent of the bill covered by it, not as to the defense set up by the plea. Dan. Ch. Pr. 686,
By the Code § 4393 it is provided: “If the plea be found false, the complainant shall have the samo advantages as if it had been so found by a verdict at common law.” After a verdict at common law, even upon a plea in abatement, where the issue is to the country, there is no respondeat ouster. Bacon v. Parker, 2 Tenn. 55; Straus v. Weil, 5 Cold. 126. But see Kendrick v. Davis 3 Cold. 526, where the ruling, upon a plea in abatement by the Chancellor finding it false, was otherwise. Where a plea in abatement is triable by record, as in this case, the judgment at common law is respondeat ouster. Marston v. Lawrence, 1 Johns. Cases 398. The defendants will be required to answer the residue of the bill not covered by the plea as allowed, within twenty days, so as not" to delay the hearing.
The English practice upon a plea of former suit pending is for the complainant not to reply to the plea, even if he disputes the fact, but to obtain a reference to the master within a month after plea is filed. Lord Clarendon’s Orders, Beames’ 17. See Baker v. Bird 2 Ves. Jr. 672. Or, he may admit as much of the plea as he likes, and take a reference for the remainder. Dan. Ch. Pr. 797. By the New York practice, the defendant was required upon filing the plea to
I have already decided at this term of the court, in the case of Montgomery v. Olwell Bros., that the proper practice under the Code, § 4393, is for the complainant, if he thinks the plea not good in form or substance, to set it for hearing on its sufficiency, and, if he thinks it good but not true, to take issue upon it. In the latter event a serious difficulty arises. Is the reference provided for by the English and New York Rules done away with by the Code? Or, rather, in the absence of any Rule of our own on the subject, is the defendant entitled to take his own time in filing the evidence to sustain his plea, or can the complainant make a rule on him to file it within a, given time, or can the court, mero motu, make the reference? I am inclined to think that when the former suit is pending in his own court, the Chancellor has the power to make the reference for himself; this was the course pursued in the present instance, and the practice seems to have been approved by the supreme court in Green v. Neal, 2 Heisk. 217 ; at any rate it was the course pursued in the court below and passed sub silentio by the supreme court. It is obvious, however, that this mode of determining the fact cannot be resorted to when the former suit is pending in another court. There ought, therefore, to be a Rule of court requiring the defendant, in the 'latter class of cases, to file a certified copy of the record on which he relies as evidence within a reasonable time, say twenty days, from the filing of the complainant’s replication of nul tiel record. And, perhaps, it would not be amiss to extend the Rule so as to make it his duty to take the order of reference as soon as issue is joined on his plea where the former suit is in the same court. The suggestion is made for the consideration of counsel with a view to the drafting of a general order on the subject, if deemed advisable.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.