Wilson v. Davidson County
Wilson v. Davidson County
Opinion of the Court
On demurrer. Under a decree of "this court in the case of The State of Tennessee v. Edgefield and Kentucky Railroad Company and others, the Edgefield and Kentucky Railroad, “including the right of way, road-bed, rails, depots, rolling-stock, and, in short, .all the property of every description, real and personal, of said railroad company,” was, in the year 1871, sold to the •defendants, and others not sued, the sale confirmed, and title vested in them. In November, 1871, these purchasers entered into a written contract with the American Contract Company to sell to the latter, upon the terms and conditions and for the considerations therein mentioned, all their stock in the Edgefield and Kentucky Railroad Company, “ together with all their rights of property, real and personal, and their interest in the franchises, estates of any kind, contingent or vested, in the company of the Edgefield .and Kentucky Railroad.” The contract contained a stipulation that the vendors, described as the party of the first part, “ agree, and hereby bind themselves, to protect, indemnify, and save harmless the party of the second part (the American Contract Company) from all loss or damage by reason of any recovery at law in any action now pend
On June 1, 1872, the American Contract Company sold and conveyed to Edward- F. Winslow, one of the complainants, “all its right, title, and interest in and to all the-property, of every kind, whether real, personal, or mixed,. described in and conveyed to it ” by the before-recited conveyance, “together with all and singular the tenements,, hereditaments, and appurtenances thereunto belonging, or-ín anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues, and profits thereof; and also all the estate, right, title, interest, property, possession, claim, and demand whatsoever, as well in law as-ín equity, of the said party of the first part, of, in, or to-the above-described premises, and every part and parcel' thereof, with the appurtenances.” This deed contains no-covenant of warranty.
The original contract between the parties contained a stipulation that the vendors were to deposit $50,000 of state bonds to secure the American Contract Company against the claims or suits at law, or both, made or to be-made for cause existing prior to the sale of said Edgefield and Kentucky Railroad. On July 31, 1872, the complainants Edward F. Winslow and James H. Wilson, “ trading as Winslow & Wilson,” addressed to the County Court of' Davidson a proposition in writing, touching a modification of the previous contract in some particulars, and among-
This bill was filed on August 8, 1877, to enforce the specific execution of this bond, and to obtain indemnity against loss by reason of certain suits which were pending previous-to the sale by the defendants, and others, to the American Contract Company. These suits were bills filed by mechanics, in the years 1860 and 1861, claiming mechanics” liens for work and labor done and materials furnished in the erection of two depot-houses on the line of said road,, at Cedar Hill and in the town of Springfield. Such proceedings were had in these suits, that final decrees were rendered in favor of the mechanics, first by the Chancery Court, and afterwards, on appeal, by the Supreme Court, at its January term, 1876, for about $7,000, and subjecting the depots, and the lots on which they were situated, to sale in satisfaction thereof. Under these decrees, the lots and buildings have been sold and bid in by the mechanics, who
The county of Davidson, being a public corporation, may, ■of course, be sued as such, although it might also sue or be ■sued in the name of the justices who compose the County ■Court, at any rate, if no objection is made to the latter mode by plea in abatement. Maury County v. Lewis County, 1 Swan, 236; Ezell v. Justices, 3 Head, 586; Code, secs. 402, 403. And service of process-on the county judge or chairman of the County Court would certainly be good service on “ the president, or other head of the corporation,” under the Code, sec. 2831. It would be absurd to serve process on each justice of the County Court, or even to make them defendants, when the same end can be ■attained so much easier and cheaper in the mode adopted.
The obligation sued on is a joint obligation, made joint :and several by the Code, sec. 2789 ; and all or any number ■of the obligors may be sued in the same action, under section 2787. The first two causes of demurrer are, therefore, not well taken.
The third cause assigned is, that the suits in which the mechanics recovered decrees for the satisfaction of their ■demand were not “ claims or suits at law,” within the meaning of the bond of the defendants. But the condition ■of the bond is to secure the parties “ against all1 claims or suits at law, or both.” The obligation to indemnify is, therefore, against “ all claims ” for causes existing prior to the sale, whether sued on or not, and the fact that the claim has been prosecuted to judgment or decree would ■simply do away with the necessity of establishing its justice. If the bill will lie at all, it would have lain before any suit was brought, and the suing, either at law or in
Another cause of demurrer which goes to the merits is, that the remedy is at law. If the language of the bond had followed, literally, the language of the original contract, and had been to indemnify the party “ from all loss or damage by reason of any recovery at law,” the question might have admitted of doubt. Bor, after the loss has occurred by payment, the remedy would naturally be at law. A distinction has been made as to the point of time at which a right of action accrues on a bond of indemnity, based upon the fact whether the obligation was to indemnify from loss,, or against liability. See Macey v. Childress, 2 Tenn. Ch. 443, and the cases there cited. In the former case, the loss-must be actually incurred; while in the latter, the object is-to prevent actual loss. And no difficulty has been felt where the obligation is to indemnify against claims and actions, nor, of course, where it is to secure a party “ against all claims, or suits at law, or both.” For these words plainly import indemnity against the claims and suits, not against the ultimate loss by recovery. And the right to come into equity in such cases is beyond question, for there would be
The remaining causes of demurrer are based upon the right of action of the complainants to sue. “The bill,”
The original contract was, it will be remembered, made with the American Contract Company, who sold and assigned to Edward F. Winslow. The bond sued on is made to Edward F. Winslow and James H. Wilson, trading as Winslow & Wilson. The bill avers that although the purchase from the American Contract Company was by Edward F. Winslow, yet he and James H. Wilson were, at the time, full partners in the enterprise, and the purchase was for the use and benefit of both, which was understood by the defendants when the bond was executed. The bill further states that, in 1872, the Nashville, St. Louis, and Chicago Eailroad Company was created and organized under and by the laws of Tennessee, and Edward F. Win-slow and J. H. Wilson were corporators and stockholders, .and that the Edgefield and Kentucky Eailroad, with all of its property, both real, personal, and mixed, as well as rights of certain actions and property of every description, was conveyed to this company; that this company, and several other railroad companies named, between Nashville nnd St. Louis, came together, and, by agreement, consolidated their several companies in one common enterprise, under the name of the St. Louis and South-Eastern Eail-road Company, consolidated; that the consolidated company succeeds to all the rights of the several companies -composing it, complainant Wilson being its president, and he and Winslow both large stockholders and owners therein, as well as in the Nashville, St. Louis, and Chicago ■Company. The bill further alleges that J. H. Wilson is now the receiver in chancery of the St. Louis and SouthEastern Eailroad, appointed by the Circuit Court of the United States at Nashville.
It must be admitted that this looks, at first blush, a little multifarious or multitudinous, or, at least, multiplex; mul-tus, many, and plisare, to fold together, considerably, and mutatis mutandis, in any way we see proper. ‘ ‘ Multiplex parit confusionem,” says Lord Hobart. Hob. 335 a. But multifariousness, in the sense of misjoinder of parties, although confusing, is not insuperable, and “the difficulty is no objection in this court,” according to Lord Eldon. Turner v. Morgan, 8 Ves. 145.
The general principle, upon the subject of parties, is that the complainants in this court must be the real parties in interest. Field v. Maghee, 5 Paige, 539. And, to use the words of Sir John Leach, on the last day on which he sat as vice-chancellor previous to taking his seat as Master of the Eolls, “ if a party, having an interest, joins with him, as a co-plaintiff, a party having no interest, the bill is demur-rable, if that fact appears on the bill; if the fact does not appear on the bill, but is brought forward by plea, such a plea is a good defence to the suit.” Makepeace v. Haythorne, 4 Russ. 247. This eminent judge had previously laid down the rule the same way in Cuff v. Platell, 4 Russ. 242. Lord Lyndhurst followed these rulings in The King of Spain v. Machado, 4 Russ. 225. And to the same effect are Delondre v. Shaw, 2 Sim. 237, and Clason v. Lawrence, 3 Edw. Ch. 53. But'a mere scintilla juris in one of the plaintiffs — as, for example, a naked title in a trustee to> serve a power of appointment; — will be sufficient to justify making him a plaintiff, for the purposes of the trust, with other persons in interest. Gething v. Vigurs, cited in Story’s Eq. Pl. (7th ed.), sec. 510, note 2. And in Rhodes v. War
^So, coming nearer to the point before us, the general rule is, that an assignor need not be made a party where the assignment is absolute. Whitney v. McKinney, 7 Johns. Ch. 144; Trecothick v. Austin, 4 Mason, 44; Norrish v. Marshall, 5 Madd. 478 ; Miller v. Bear, 3 Paige, 466. Yet it has been held, that it is no objection to a bill that the assignor and assignee of a debt were joined as plaintiffs for its recovery. Ryan v. Anderson, 3 Madd. 174. And Judge Gaston, in Thompson v. McDonald, 2 Dev. & B. Eq. 477, considers the point with his usual learning and ability, and strongly intimates that even if the assignor be needlessly made a party plaintiff with the assignee, it is no valid ground of defence.
Upon principle, I am unable to see why the assignor of a bond or other security might not be joined with the assignee as co-plaintiff in a suit for its enforcement. It obviates the necessity of proving the assignment, or going Into any of the minutiae of the relation between the parties. It is, moreover, an additional protection to the obligor against any future demand upon the obligation. And such protection, it is obvious, may be desirable where the security has been informally transferred in the lump with other property, or not transferred at all, except by implication from the
I think this assignment insufficient, and overrule the demurrer.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.