Gottschalk Co. v. Live Oak Distillery Co.
Gottschalk Co. v. Live Oak Distillery Co.
Opinion of the Court
delivered the opinion of the Court:
Under the law prevailing in the District of Columbia, an equitable estate or interest cannot be seized and sold under execution ; the sole remedy of the judgment creditor is in equity. Both parties to this appeal, being judgment creditors of Ann Dunn and William H. Dunn, undertook to subject their interests in the lands, out of the sale of which the fund in controversy arose, by proceeding in equity; the appellee by its cross-bill filed May 9, 1892, in cause No. 13,343, and the appellant by its original bill (No. 14,278), filed October 20, 1892. Both parties invoke the doctrine established in Freedmaiis Savings and Trust Co. v. Earle, no U. S. 710, that a judgment creditor in this District may acquire priority of lien by filing his bill before that of others.
Not having been objected to, the cross-bill occupied the attitude of an independent bill to subject the special interests of Ann and William H. Dunn in the estate to the lien of appellee’s judgment, and gave it priority under the rule laid down in Freedman's Savings and Trust Co. v. Earle, supra.
Reference
- Full Case Name
- THE GOTTSCHALK COMPANY v. THE LIVE OAK DISTILLERY COMPANY
- Status
- Published
- Syllabus
- Judgment Creditors’ Suits; Priority of Lien; Cross-Bills. A general creditors’ bill was filed by A for the administration of a decedent’s estate. B subsequently filed a cross-bill to satisfy a judgment recovered against the executors of decedent by the establishment of a lien against their interest in the estate. A* motion to strike out the cross-bill was denied and a demurrer then interposed was not urged. An original bill was then filed by A to satisfy a judgment he had recovered against the executors out of their interest in the estate. Thereafter C filed a bill against all parties for the consolidation of all the suits and the appointment of receivers to wind up the estate. The causes were consolidated, no one objecting, receivers appointed, sales made and reported, and their report and accounts referred to the auditor, who reported priority of lien in favor of B as to a balance due the executors. Upon exceptions by A, who claimed priority over B on the ground that priority could not be acquired by cross-bill, it was held confirming the auditor’s report that the cross-bill was effective in giving priority to B, any right of objection A might have had to it having been waived by him.