Moore v. Holt
Moore v. Holt
Opinion of the Court
This is a contest between persons claiming to be creditors of a common debtor, and seeking priority out of the proceeds of his effects, which have proved inadequate to the satisfaction of all.
The suit of the appellee was what is called “ a foreign attachment,” commenced by a subpoena sued out on the 12th of October 1846, with the usual endorsemant to attach the effects of the absent debtor in the hands of the home defendants, and to restrain the latter from disposing of them till the further order of the court. It was made returnable to the November rules following ; and upon the day on which it issued, it was executed upon the defendant Snodgrass, who had in his possession a stock of goods and other effects belonging to the debtor Joseph W. Holt. After the service of this process, that is to say, on and after the 17th day of October 1846, the appellants and other creditors of the said Joseph Holt sued out their several attachments at law, and the same were levied upon the same property.
At the November term of the county court of Botetourt, these creditors obtained judgments upon their respective attachments, with orders for the sale of the attached effects; and thereupon the appellee, who had filed his bill at the November rules, filed a supplemental bill, setting out the proceedings of these creditors, alleging that they were about to proceed to execute the orders of sale of the goods, and praying for an
The first question presented in this case is as to the regularity of the proceeding by injunction at the suit of the creditor in a foreign attachment to restrain creditors who have attached the same effects by proceedings at law, from appropriating them to their use. This question is however sufficiently answered by the case of Erskine v. Staley, 12 Leigh 406, in which it is distinctly held that an application to the court of chancery to enjoin a sale in such a case under the judgment at law is entirely regular and proper; and the judge who delivered the opinion in the case states that it is the only remedy the plaintiff in the foreign attachment could resort to.
It is objected on the part of the appellants, that the
The next objection is, that the attachment was void for uncertainty, because neither the character nor the amount of the claims for which the attachment is sued out is stated in the endorsement on the subpoena. The endorsement however is of course to be understood as referring to the bill to be filed, in which the nature and amount of the complainant’s demands must be properly exhibited. It is argued, however, that a plaintiff, after issuing his subpoena with an endorsement in general terms, and after it had been served, might purchase up other claims against the debtor, and include them in his bill, and thus practice a fraud upon other creditors who had acquired rights after his attachment had been served on the garnishee, but before his purchase of such additional claims. The answer to this is that the court cannot presume such a fraud, and must refer the ownership of the claims set up in the bill filed to the time of the suing out of the subpoena, in the absence of proof or suggestion to the contrary; but that it is entirely competent to any party interested to set up such a case, in some proper manner, in defence of his
The next objection is, that the proof in the ease was not sufficient to show that the defendant Joseph W. Holt was a nonresident of the commonwealth at the time the suit was instituted. The bill alleges that at the time of the emanation of the subpoena, the said Joseph Holt “was and still is a nonresident of the commonwealth of Virginia, and that upon enquiry at his usual place of abode, he could not be found, so as to be served with process.” The preamble of the statute, 1 Rev. Code 1819, p. 474, ch. 123, recites, that whereas creditors had experienced great difficulties in the recovery of debts due from persons residing out of the jurisdiction of this commonwealth, &c., and then goes on to provide that where any suit had been or thereafter should be commenced for relief, against any defendants who are out of this country, and others within the same, having effects in their hands, &c., upon affidavit that such defendant or defendants are out of the country, or that upon enquiry at his, her or their usual place of abode, he, she or they could not be found, so as to be served with process, the court may make proper orders to secure the attached effects, and appoint a day in the succeeding term for the appearance of such defendants, &c., a copy of the order fixing such day to be published as thereby provided. How it might be held, upon an equitable construction of this statute, that where a debtor has actually left his usual place of abode and set off for a distant state, with the intention not to return to his residence, but in future to reside out of the state, an attachment sued out after his departure might be sustained, although it chanced he had
The next objection is, that there is no proof in the record to show that the order of publication against the alleged absent defendant had been duly executed as the law requires. The decree, however, states that the order of publication against Joseph Holt had been duly published, and as due publication requires both the insertion of the order in a newspaper for the prescribed period, and the posting of it at the court-house door in due time, the decree must be construed to import that both were done. And it has been decided by this court on several occasions, that where the decree states that publication had been made, it will be sufficient, and this court will not look into the record for the evidence of the fact. Hunter's ex'or v. Spotswood, 1 Wash. 145; Gibson v. White, 3 Munf. 94; Craig v. Sebrell, 9 Gratt. 131. I think this objection also should be overruled.
The fifth ground of error assigned by the appellants is, that there was no such relation subsisting between Joseph Holt and the appellee as would entitle the latter to maintain an attachment against him : That
The fifth section of the statute, 1 Rev. Code 1819, p. 476, plainly extends the provisions in relation to “ absent debtors” proper, to all cases of suits in chancery against any absent defendants, concerning any matter or thing whatever; and in the case of Templeman v. Fauntleroy, 3 Rand. 434, we see that purely equitable claims as well as legal demands may be made the subject of foreign attachment: And we are told that “ where the case properly belongs to the court of equity, all equitable rules and principles will attach to it.” Carr, J., p. 441. How it cannot be doubted that the claim of a party standing in the condition of a guarantor or surety, to protect himself against loss by reason of the failure of the principal debtor, is such an equitable right as may be enforced through the medium of a foreign attachment. If the debt be due, and the principal debtor can be served with process, the right of the surety to maintain a bill
The same principle is deducible from the case of McKim v. Fulton, 6 Call. 106, though the report of the case is somewhat obscure. The bill was filed on behalf of one partner of a mercantile concern which had been dissolved, to attach the effects of the other partner who was a nonresident, and to have them so applied as to exonerate the plaintiff from liability for the debts of the firm which the nonresident partner, upon the dissolution of the firm, had taken upon himself to pay. 2sTow as the nonresident partner had agreed to pay the debts of the firm and to save the other harmless, as between themselves, the former became the principal debtor, and the latter the surety merely; Buchanan v. Clark, supra; and although the plaintiff had not been made liable for any of the debts of the firm, so far as it appeared, yet the attachment to secure him against his contingent liability was sustained by the Court of appeals, although it had been
But it is insisted that the appellee was not in fact a surety for Joseph Holt; that the letter of credit on the faith of which it was said the goods were furnished, was no guaranty but a mere letter of introduction or recommendation, upon which the appellee could not have been liable in a court of law; and at all events, that he could not have been made liable unless notice had been given him that his guaranty was accepted, and of the amount of goods furnished upon it. A guaranty is a collateral engagement or undertaking to be responsible for the debt of another upon his failure to perform his engagement. The language used must express in a clear and explicit manner, an intention on the part of the guarantor to make good the engagement of the principal in case of his default. Russell v. Clark, 7 Cranch. 69, 90, 91. But as a guaranty is regarded as a mercantile instrument, it is not to be interpreted by any strict technical rules of construction, but by what may be fairly presumed to have been the intention and understanding of the parties. Douglass v. Reynolds, 7 Peters’ R. 113; Lee v. Dick, 10 Peters’ R. 482; Bell v. Bruen, 1 How. S. C. R. 169. In this case the appellee, a merchant doing business in the country, writes to a mercantile house in Richmond with which he was in the habit of dealing, stating that
I think the letter in this case might properly have been regarded by those to whom it was shown as the guaranty of the appellee for such sales as they might make to Joseph Holt upon the faith of it; and no question can be raised as to consideration, as it is well settled that it is not necessary there should be a consideration directly between the persons giving and receiving the guaranty. It is sufficient if the party for whom the guarantor becomes surety receives a benefit, or the party to whom the guaranty is given suffer a
As to the questions whether the guaranty was accepted, and whether due notice of such acceptance and of the advances made upon it, and of the default of Joseph Holt, was given to the appellee, I have to say that however they might have been determined in an original action at law against the appellee by a party who had made the advances, yet that they cannot now be raised in this case in a manner to be at all available to the appellants, except in connection with the allegation of fraud and collusion between the Richmond merchants and the appellee. But this allegation is, I think, wholly unsustained by the proofs. Indeed the only circumstance of the appellee’s having the claims of the Richmond merchants in his possession and the suing out attachments in their names, which tends to raise even a suspicion of the fairness of the transaction, is, I think, satisfactorily accounted for. Those claims were no doubt sent to the appellee with authority to use the names of the creditors, if necessary to enable the appellee to secure himself from loss on account of his liability for them; and the attachments were sued out after this suit was brought, out of abundant caution, for the purpose of securing the appellee so far as they might serve that purpose, in case it turned out that lie could not maintain his foreign attachment.
Laying aside then the charge of fraud and collusion, I think the circumstances of this case .are such as to constitute a waiver on the part of the appellee, of all the questions above suggested, and a distinct recognition of his liability. It is clear, as I think, that the goods were sold by the Richmond merchants to Joseph
Both Pry and Company and Kent and Company claim in their answers that after Joseph Holt went away, but before the appellee sued out his attachment, the latter admitted his liability to them, and assumed the payment of the debts due them from Joseph, respectively. And the circumstance of their claims, as well as that of Willingham, having been sent by them to the appellee or his counsel, to be used for his benefit, and the acts and conduct of the appellee, all
Another objection which has been taken is, that it is not proven the letter of guaranty was written at the time it bears date, nor that the Richmond merchants trusted Joseph Holt on the faith of it. But the letter was delivered to Fry & Co., and was produced and exhibited by them with their answer. If it had been fraudulently antedated, it was for the appellants to show it. They have offered no proof of any such antedating ; the circumstances of the case do not render it at all probable, and the court cannot presume it. And as to its effect in giving credit to Joseph Holt, the answers of the parties before referred to state explicitly that they sold their goods upon the faith of the letter, and would not have sold them without it. The letter is dated at Big Lick in Botetourt county on the. 18th of March 1846; it is delivered to Fry & Co., and in five or six days afterwards, these merchants in Richmond let him have goods amounting altogether to upwards of two thousand dollars, and he a stranger to them all and having no other introduction excepting this letter with a memorandum which appears to have been written at the foot of it and signed by one Edward Carter, in which he stated that he considered that goods sold on time to Joseph Holt, to the amount of fifteen hundred dollars, would be paid for by him. Ho one can doubt, I think, that the parties, in making these sales to Joseph Holt, did rely upon the guaranty of the appellee with whom they were acquainted, and who had been a dealer with them himself.
The last ground of error assigned is, that the suit should have been in the names of the appellee and Carter, and not of the appellee alone. But it may be a question whether Carter’s memorandum is any gua
None of the errors assigned is, as I think, a sufficient ground for reversing the decree; nor have I been able to discover any such in any part of it; and I am of opinion that it should be affirmed.
The other judges concurred in the opinion of Lee, J-
Decree affirmed-
Reference
- Full Case Name
- Moore & als. v. Holt
- Status
- Published