Cargill, Inc. v. Eastern Grain Growers
Cargill, Inc. v. Eastern Grain Growers
Dissenting Opinion
dissenting:
I respectfully dissent. I think the law in this jurisdiction relative to the controlling question in this case, is stated in the case of Summersville v. Cooper, 124 W. Va. 417, 21 S. E. 2d 669. Notwithstanding that the writer of this dissent did not agree with the Court’s opinion in the Summersville case, I am bound by the decision in that case. I think that this law should govern until this Court should be of the opinion to follow the views expressed in the dissent and overrule the case of Summersville v. Cooper, supra. This, the Court has not done. I would follow the
Opinion of the Court
This is primarily an interpleader proceeding under the provisions of Chapter 56, Article 10, Section 1 of the Code,
Cargill, Inc., brought an action of assumpsit against the Eastern Grain Growers, hereinafter called Eastern, in the Circuit Court for Washington County, Maryland, on December 31,1949. The action was subsequently removed, on motion of defendant, to the Circuit Court for Allegheny County, Maryland, wherein a jury returned a verdict for Cargill, Inc., in the amount of $6,075.00, and judgment was entered thereon on December 22, 1951. Cargill, Inc., then brought an action of assumpsit, based on this judgment, in the Circuit Court of Berkeley County, West Virginia, in December, 1952. Eastern appeared, entered a plea of non assumpsit, and filed a bill of particulars, but offered no evidence, and judgment was entered in favor of Cargill, Inc., for the amount of the foreign judgment, plus costs, on April 6, 1953. Execution issued the same day, and an order of suggestion was served upon the Merchants and Farmers Bank of Martinsburg, West Virginia, where money of Eastern was on deposit.
On June 1, 1953, Eastern tendered the affidavit of its President, Amos E. Bowman, for the interpleading of Myron L. Bloom, trading and doing business as H. S. Poffenbarger & Son of Washington County, Maryland, and it stated inter alia that the deposits to the credit of Eastern in the Merchants and Farmers Bank represent the proceeds of sales of grain owned by Bloom, which grain was sold by Eastern as agent of Bloom, and that such deposits constituted “an agency or trustee account” for the benefit of Bloom. Cargill, Inc., moved to quash the affidavit on three main grounds: (1) That the suggestee alone is the only person who may file an affidavit of inter-pleader to determine ownership of the money; (2) that the facts set forth show collusion between Eastern and Bloom; and (3) that insufficient facts are alleged to justify the conclusion that any property of Eastern constituted trust property. The motion to quash was overruled, and an order entered directing Bloom to appear and maintain or relinquish his claim. Bloom filed his petition for
The evidence in the record is in narrative form, certified by the court, in lieu of a complete report as taken. Summarized briefly, Bloom testified: That he would put his wheat into the hands of Eastern for sale, Eastern would obtain a buyer, he would authorize sale, and Eastern would collect the proceeds and remit to him, less storage and service charges; that there was a balance due him of $8,291.12; that he was informed of the attachment on November 21, 1952, but that nothing was done to claim the funds as belonging to him, except to place the matter in the hands of an attorney; that he looked to Eastern for payment rather than to the buyer; that he was sometimes paid before Eastern collected; that Eastern never bought wheat from him; and that he had been paid nothing for any wheat sold since October 27, 1952, although it was. elicited on cross-examination that he had received an aggregate of $4,033.96 after that date. Malcolm Yeakle, Secretary-Treasurer of Eastern, testified that all proceeds from the sale of wheat, including commissions, from every source were deposited in the account, plus money advanced by Bowman, and received from Bowman’s farm; that it was a general account, used for all purposes; and that the Eastern account with Bloom was a running' ac
The court found that the money in the account belonged to Bloom, and ordered the funds paid to him. Cargill, Inc., then moved to strike all proceedings with reference to the interpleader, and to award a new trial, which motions were overruled and final judgment was entered February 6, 1954.
Errors assigned in this Court are: (1) Refusal to quash the affidavit of Bowman; (2) refusal to strike the petition of Bloom; (3) refusal to require security for costs from Bloom; (4) finding that the funds in the Merchants and Farmers Bank belonged to Bloom; (5) refusing to permit certain evidence offered by Cargill, Inc.; (6) directing the funds on deposit be paid to Bloom; and (7) overruling the motion for a new trial.
In view of the holding of the Court upon the controlling question presented by this writ of error, that is, the action of the trial court in refusing to quash the affidavit of Bowman, President of Eastern, a detailed discussion of the other assignments will not be necessary.
While the remedy by interpleader existed at common law, it was not allowed in any personal action except detinue, and then only when it was founded upon a joint bailment, privity of, contract or upon a finding. Inter-pleader, of course, is an ancient and well established equitable remedy which was in existence before the enactment of interpleader statutes. However, this proceeding is based upon the statute, and the right to institute it, and the jurisdiction of the court to entertain it, is governed by Code, 56-10-1, the pertinent part of which reads as follows: “A defendant in an action brought
In the instant case, Eastern resisted the efforts of Car-gill, Inc., to secure a judgment in the Circuit Court of Berkeley County upon the foreign judgment from the time it was instituted in December, 1952 until judgment was entered on April 6,1953. Eastern successfully resisted the efforts of Cargill, Inc., to attach the funds on deposit in the Merchants and Farmers Bank of Martinsburg throughout this period. On March 10, 1953, Eastern filed its plea of non assumpsit, and its bill of particulars filed April 1, 1953, stated that: “there was no judgment recovered by the plaintiff against the defendant in the action described in the second count of the plaintiff’s declaration, and that no suit in assumpsit such as that described in said second count was instituted in the Circuit Court of Washington County, Maryland.”
In the affidavit for interpleader of May 29, 1953, filed by its President, Bowman, subsequent to the entry of judgment against it, it was stated: “*** that the said Eastern Growers does not wish to further defend the above styled action for a judgment against it.”
This Court has not passed upon the precise question of whether a defendant after judgment, who is not a sug-gestee in an order of suggestion, may invoke the statutory interpleader procedure. However, in The Town of Summersville ex rel. Arnold McCue v. C. J. Cooper et al., 124 W. Va. 417, 21 S. E. 2d 669, the question is raised, but not decided, and in the dissenting opinion a very affirmative
In a very forceful dissenting opinion, Judge Lovins said: “The remedy thus given is available to a defendant “*** in an action *** which he does not wish to defend ***.’ Cooper and the National Surety Company do not come within the purview of that statutory remedy. It is true that they were defendants in the action brought by the Town of Summersville for the use of McCue, but that action was defended by them with an unfavorable result. It has ended, leaving nothing to be done except to pay the judgment or apply for a review to this Court, and they chose to pay which ended the action.” He further stated:
“*** After rendition of the judgment, there was no longer an action. ***
“It requires a strained construction to say that a suggestion and process in aid of an execution constituted an action, and that the suggestees are defendants therein who do not ‘wish to defend’.”
In other words, applying his language to the instant proceeding, Judge Lovins would not only deny the inter-pleader remedy to Eastern, but would deny it as well to the Merchants and Farmers Bank of Martinsburg had they attempted after judgment to invoke the remedy.
While some courts have held that interpleader statutes are remedial and should be construed liberally, Section 572, Volume II, Second Edition, Lewis’ Sutherland Statutory Construction states: “When a right is given by statute and a specific remedy provided, or a new power and also the means of executing it are therein granted,
In referring to statutes of interpleader, Section 4, C. J. S. 48, states in part as follows: “*** As a general rule, the statute is merely a substitute for the original bill in equity and is governed by the same doctrines and principles, and its function or purpose, like that of the original bill in equity, is to protect one against conflicting claims and to avoid a multiplicity of suits.” Section 5 thereof states that: “*** The purpose of such a statute is to provide a short, simple and convenient method of accomplishing the purposes of a bill of interpleader in equity, namely, to avoid a multiplicity of suits and to afford protection against conflicting claims, and to enable a party who has been sued on a contract as to which he admits full liability as to the amount thereof to place in positions of adversaries the real parties at interest.***”
All of the cases and all of the texts 'state that a defendant who seeks to interplead, whether by bill in equity or by statutory interpleader, must be a mere stakeholder with certain exceptions provided in bills in the nature of interpleader where some affirmative relief is sought.
This Court holds that Eastern, at the time the affidavit was filed by its President, Bowman, was not “a defendant in an action” which it did “not wish to defend.” It had defended over a period of several months until judgment had been rendered against it, execution issued and an order of suggestion in aid of it served upon the bank. No one had made Eastern a suggestee in an order of suggestion issued in aid of an execution. If there was a stakeholder it was the bank, not Eastern. The only remedy still available to Eastern was a possible review by this Court. The motion of Cargill, Inc., to quash the affidavit of Bowman should have been sustained.
The judgment of the Circuit Court of Berkeley County is reversed and the case is remanded to that court for the entry of an order consistent with the views expressed in this opinion.
Reversed and remanded with directions.
Dissenting Opinion
dissenting:
Cargill obtained a judgment against Eastern in the State of Maryland. It then instituted an action in the Circuit Court of Berkeley County, West Virginia, for recovery of a judgment in this State on the foreign judgment and, at the time of the institution of the action in the Circuit Court of. Berkeley County, caused an attachment to 'be served against money held on deposit in the name of Eastern in the Merchants and Farmers Bank of Martins-buirg. Eastern defended the action instituted in the Circuit Court of Berkeley County, West Virginia, on its merits. Judgment was entered in favor of Cargill on the foreign judgment by the Circuit Court of Berkeley County. Eastern was successful, however, in having the attachment adjudged invalid. On the day judgment in favor of Cargill was entered by the Circuit Court of Berkeley County, Car-gill caused the issuance of a writ of fieri facias on the judgment and, by virtue of a garnishee summons issued in aid thereof, attached the money held in the Merchants and Farmers Bank. The garnishee attachment was served on the bank on the day it was issued. After the bank filed its answer, the president of Eastern filed an affidavit suggesting that the money was claimed by Bloom, and the court entered an order directing that “Bloom do appear before this Court on the 29th day of. June, 1953, and state the nature of his claim, and maintain or relinquish it ***”. After service of a copy of that order on Bloom, he did appear and filed a pleading designated “Petition of Inter-pleader”, stating fully the nature of his claim. After hearing in full on the petition of Bloom, the Circuit Court of Berkeley County found and adjudged that the money attached by virtue of the garnishee attachment was the property of Bloom.
The only basis given by the Court for the reversal of the judgment rendered in favor of Bloom is that Eastern was not a party defendant who could file an affidavit suggesting ownership of the money by Bloom. That conclusion is founded on one fact only, that Eastern had defended on the merits the action on the foreign judgment.
The manner in which the Court applies the statute in the instant case is, I think, clearly in conflict with the Court’s opinion in The Town of Summersville ex rel. McCue v. Cooper, 124 W. Va. 417, 21 S. E. 2d 669, cited in the Court’s opinion herein. In that case, as in the instant one, there was outstanding a writ of fieri facias and, also as in the instant case, a garnishee summons had issued subsequent to the final judgment. In the Cooper case it was vigorously argued that the judgment debtors “were not ‘defendants in an action’, as contemplated by the statute”. The Court said: “This contention, however, leaves out of consideration the fact that Craig had made them suggestees in an order of suggestion issued in aid of his execution. Whether without the order of suggestion Cooper and the surety company could have maintained this statutory interpleader proceeding, we need not decide, for we are clearly of opinion that they were ‘de-
Assuming, for the purpose of this dissent, that the affidavit of Eastern was invalid, I see no reason why the pleading of Bloom, though denominated “Petition of Inter-pleader” should not be treated as a petition to try title to property under Code, 38-7-31, which, in so far as pertinent, reads: “A defendant, any person entitled to file a petition under the provisions of section forty-one of this article * * * or any other person whose rights are affected by the attachment, shall have the right, either jointly or separately, to defend against any attachment, and to the benefit of all available defenses thereto * * In 38 C. J. S., Garnishment, Section 2, it is stated: “Garnishment is an anomalous proceeding affording an extraordinary and harsh remedy. It partakes of the nature of both a process and a suit. It is, in effect, a mode of attachment.” In Code, 38-7, garnishment is treated as an attachment. It is, in fact, an attachment adopted as an aid in the enforcement of a writ of fieri facias. As before noted, the trial court, after a full hearing, found and held that the money attached was, in truth, the property of Bloom. This Court should not disturb that finding merely because a pleading was not properly named. To do so, I believe, denies Bloom the right accorded to him by Code, 38-7-31, and his right to the money which the trial court found belonged to him.
In the Cooper case, we find this language: “Assuming, therefore, that these judgment debtors may possibly elect to remedy the defects pointed out in the affidavit and to
Being of the views indicated, I respectfully dissent.
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