American Flask & Cap Com. v. Son

3 Abb. Pr. 333
CourtNew York Supreme Court
DecidedJuly 15, 1867
StatusPublished

This text of 3 Abb. Pr. 333 (American Flask & Cap Com. v. Son) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Flask & Cap Com. v. Son, 3 Abb. Pr. 333 (N.Y. Super. Ct. 1867).

Opinion

Jones, J.

In Wright v. Ritterman (Abb. Pr. R., N.S., 428) [334]*334it is held that a valid discharge granted under the provisions of article 5, ch. 5, title 1, part 2, of the Rev. Stat. (under which provisions the discharge in this case was granted) operated so as that if a person in whose favor such discharge has been granted should thereafter be sued in an action ex contractu for a debt due or contracted at the time of the application for a discharge and should be arrested on the ground that the debt was fraudulently contracted, such person would be entitled tobe discharged from arrest.”

In the present case the summons being issued under the 1st subdivision of section 129, shows that this action is brought for the recovery of money arising on contract; in other word's it is an action ex contractu for the recovery of a debt. The defendant has been arrested on the ground of fraud in contracting the debt.

The affidavits on which the order of arrest was granted, show that the debt was contracted and due at the time the application for a discharge was made. The defendant is therefore entitled to be discharged unless the validity of his discharge can be inquired into on this motion, and on such inquiry it should be found to be invalid.

Sec. 21 of art. 7 of title 1 of ch. 5, part 2, of the Rev. Stat. provides: “If any insolvent discharged under the third, fourth, fifth or sixth articles of this title shall be arrested on mesne process, in a suit upon any debt or liability in which he is exempted from imprisonment, as in those articles declared, and shall apply to any officer to discharge him from arrest, said officer shall cause reasonable notice to be given to the plaintiff in such suit to show cause why such insolvent should not be discharged from such arrest.

Section 22 of said article provides: “ The plaintiff in such suit may show as cause against such discharge any fraud committed by such insolvent in obtaining his discharge, or any cause for avoiding such discharge declared in the said articles, and such officer may require such insolvent to be held to bail in such process, as if no such discharge had been granted.”

Under these sections it was clearly the duty of any officer or court to whom a defendant arrested on mesne process applied to be discharged from arrest, on the ground that he had [335]*335received a discharge under seme one of said four articles, to inquire whether such defendant had been guilty of any fraud in obtaining his discharge or whether any cause for avoiding such discharge, as declared in such articles, existed.

This was the view taken by the late Supreme Court of a similar provision in the act entitled “ an act to abolish imprisonment for debt in certain cases” passed April 7,1819 (Laws of 1819, 115, §3). The provision referred to is “ and provided further that nothing herein contained shall prevent any court of record or any judge of said court from directing such debtor to be held to bail on mesne process, in cases of fraud under this act.”

Under this provision the late Supreme Court, in a case where the defendant, having been arrested without any previous order, applied on motion to be discharged on common bail, refused to discharge him, because the affidavits read in opposition showed facts amounting to prima facie evidence of fraud in obtaining the discharge. (Reynolds v. Manning, 1 Cow., 228.)

It will be observed that this case does not fall strictly within the letter of the act of 1819, as no previous direction to hold to bail had been obtained, but the court in accordance with the spirit of the act held that the plaintiff, having shown facts which precluded defendant from availing himself of his discharge, they would not afford him protection under it.

The authority of this case has never been questioned.

The provision of the act of 1819 did not apply to the act entitled “ an act for giving relief in cases of insolvency, passed April, 1813 (R. L., p. 460). Consequently the rule adopted in cases arising under that act that the validity of a discharge would not be inquired into on motion, but that the defendant would be discharged from arrest on the production of his certificate, did not apply to cases under the act of 1819.

This will be seen by comparison of the case of Reed v. Gordon (11 Cow., 507), decided by the Supreme Court, Hay term, 1823, and the above case of Reynolds v. Manning, decided by the same court, but three months afterwards at August term, 1823.

The first case arose under the act of 1813, on defendant’s motion for a discharge from arrest; plaintiff’s counsel referred [336]*336to the above cited provision in the act of 1819, and argued that that provision showed the understanding of the legislature to be that a discharge from arrest, by reason of defendant having obtained an insolvent discharge, could not be granted on motion short of legislative provision. The court, however, held, that it was settled by repeated decisions that neither fraud or irregularity in obtaining the discharge could be tried on affidavits, that want of jurisdiction was not distinguishable from fraud, that none of the proceedings before the discharge could be questioned in the summary mode of a motion, and discharged the defendant from arrest.

But three months later, their attention having in the above case, been called to the provision in the act of 1819, and that provision having been disregarded in that case as inapplicable, they, in Beynolds v. Manning, in a case arising under the act of 1819, refused to discharge the defendant on motion because the affidavit showed prima fade that there was fraud in procuring the discharge.

This distinction between the two classes of cases depended on the existence in one act of a provision which was not contained in the other, and this distinction has been constantly acted on. Thus we find that all the cases in the late Supreme Court, in which it was held the validity of a discharge would not be inquired into on motion, were cases arising under the act of 1813, as it stood prior to the revision of the statutes.

The adoption of the revised statutes in 1828 abolished this distinction, for by them sections 21 and 22 of article 7, which are substantially, so far as this question is concerned, the same as the provision in the act of 1819, were made applicable to discharges under the two-third act and consequently the rule adopted (if any authority is to be followed on the subject) by the late Supreme Court in reference to discharges under the act of 1819 must now be adopted in the case of all discharges, under said 3d, 4th, 5th and 6th articles.

It is true, since the passage of the Bevised Statutes, several cases have been decided holding that the validity of a discharge under the two-third act cannot be inquired into on motion to discharge from arrest. Among other cases is that of Russel, et al., v. Packard (9 Wend., 431). But on examination of [337]*337these cases it will be seen that sections 21 and 22 of article 7 were overlooked by the court.

This brings me to the inquiry as to whether the discharge is invalid.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Reynolds v. Manning
1 Cow. 228 (New York Supreme Court, 1823)
Rusell v. Packard
9 Wend. 431 (New York Supreme Court, 1832)
Ayres v. Scribner
17 Wend. 407 (New York Supreme Court, 1837)

Cite This Page — Counsel Stack

Bluebook (online)
3 Abb. Pr. 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-flask-cap-com-v-son-nysupct-1867.