Black v. Caruthers, Harris & Co.
Black v. Caruthers, Harris & Co.
Opinion of the Court
delivered the opinion of the court.
This is a suit at law against the surety in an injunction bond. The injunction was sued out by one Thomas Gregory to enjoin further proceedings in certain suits depending in the courts of law, in the name of these plaintiffs against him,
In obediance to the fiat of the judge granting the writ of injunction, a bond, with surety was taken by the clerk and master of the chancery court, to which the defendant, James Black, became a party as one of the sureties. The words of condition in the bond are, “if the said Thomas Gregory prosecute his said bill with effect, or in case of failure pay all costs, charges and damages accruing in consequence of said failure, and shall further stand to, abide by, and perform the decree of the chancery court which may be made in this cause, then, &c.” Pending the suit in chancery, and before any decree, the said Thomas Gregory died. Administration was granted upon his estate and before any proceedings were taken to revive the suit in chancery, the administrator in pursuance to the provisions of the act of 1837, suggested the insolvency of said estate, and filed a general bill under said statute against all the creditors and others interested in said estate. The legal operation and effect of this proceeding was to suspend and enjoin all suits whatsoever against the estate, and to draw them all into the control, operation and scope of this general bill, unless presented in subserviency to it, and with a view to its action and results. The cases at law by force of this new injunction, were- thenceforth stopped, and it came in place and in aid of all other injunctions. In this state of things, the administrator filed his bill of revivor against Caruthers, Harris & Co. in the chancery court, and the suit was so prosecuted in said chancery courtjthat adecree was rendered against the administrator of Thomas Gregory for $ 11,818 49, to be levied of the goods and chattels, rights and credits of the said Thomas Gregory in the hands of the administrator to be administered &c., and thereupon the defendants in said suit, the said Caruthers, Harris & Co., “by their counsel, moved the. court for a judgment and decree against James Black and Jesse G. Raney, the sureties in the injunction bond, which motion was overruled by the court and it was further ordered, adjudged and decreed by this court, that the two suits at law, pending in the circuit court of Maury county, wherein said Caruthers, Harris & Co. are
The facts herein before set forth are shown in the pleadings and in the record of the c'ase before us. Several points have been discussed before us, into which it is not necessary to go at length, as first, whether under the circumstances of the case, the clerk and master under the fiat of a judge had power in point, of law to take a bond with surety from the complainant praying an injunction, with conditions so comprehensive and stringent as the one in the record. As to this matter there is no statutory provision, nor any definite practice founded upon authoritative adjudication. Bonds are taken in this State, and have been for a long time, as a substitute for a deposit of money in court according to English custom, as better suiting the condition of our country and the circumstances of suitors in our courts of chancery.— When a judgment at law has been obtained and the object of the suit in chancery is to abate the amount of it or to set if aside upon some equitable ground, then it has been usual and proper to give bond for the amount of the judgment, conditioned for its payment in the event of failure in chancery.— But where before judgment at law, the investigation of the questions involved, have been drawn by injunction into the court of chancery upon the ground of a concurrent jurisdiction in that court, better adapted to the merits of the controversy, as in this case, it has.been more usual, as it is certainly more proper, that the condition of the bond should stipulate
As to'the legal effect of the boncT as taken,.it is argued, that the covenant to stand to, abide by and perform the decree with reference to the decree which was actually made, means no more than that the sum decreed to be paid out of the assets to be administered pro rata, shall to that extent be faithfully paid, and is not an obligation on the. part of the sureties to pay the amount decreed. We cannot assent to the correctness of this construction. The faithful application of all the means of the principal will not in such an undertaking absolve the sureties from liability.- The undertaking to perforin the decree is broader than that, and means that the sureties, where money is decreed, shall pay the amount of the decree.
But we are of opinion, upon other grounds, that the judgment of the circuit court is erroneous, and must be reversed.
1st. There was a motion made in the chancery court by the counsel of the defendants in .that court, the plaintiffs in this suit at law for a judgment and decree against the sureties in the injunction bond. The court has jurisdiction to entertain such amotion against the sureties in the bond and to have given a decree againt them, if in other respects- it had been proper, because by the execution of the bond in that court, they had so far made themsélves parties to .the suit as to confer upon the court jurisdiction to decree against them. The bond being given in the court -of chancery under our practice as an indemnity to the opposite party, and in lieu of the money deposit .according to the English practice, it results from the nature and object of the proceeding, that it is incident to the power and duty of the chancery court, and convenient and proper in the enforcement and execution of its decrees, and to the full and ready administration of justice to the parties before it, that it should itself apply the indemnity
Being satisfied that the above is a valid ground for reversal, we do not deem it necessary to place the reversal upon another ground, which the statement of the case in this opinion presents, namely: That after the death of Gregory, and before the revival of the chancery suit, the general bill of the administrator to settle the whole estate, real and personal, according to the statute of 1837, was filed, which proceeding superseded the first injunction, took away all chance for indemnity, destroyed all priorities, and revived the suit as merely auxiliary to that proceeding.
Upon the whole, we reverse the judgment of the circuit court and give judgment for the plaintiff in error.
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