American National Bank & Trust Co. v. Hon

360 S.W.2d 20, 210 Tenn. 468, 14 McCanless 468, 1962 Tenn. LEXIS 308
CourtTennessee Supreme Court
DecidedSeptember 7, 1962
StatusPublished
Cited by1 cases

This text of 360 S.W.2d 20 (American National Bank & Trust Co. v. Hon) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American National Bank & Trust Co. v. Hon, 360 S.W.2d 20, 210 Tenn. 468, 14 McCanless 468, 1962 Tenn. LEXIS 308 (Tenn. 1962).

Opinion

Mr. Justice White

delivered the opinion of the Court.

The defendant has filed a motion to dismiss this appeal on the ground that the appellant has engaged in a course of conduct since perfecting its appeal which would estop it from continuing to prosecute the appeal, and on the ground that the issues raised by the appeal are now moot. To pass upon this motion a recital of the facts is necessary.

The case originally involved the right of a creditor to intervene in a divorce case in the Circuit Court in which the wife, Barbara Jean ITon, filed suit for a divorce [470]*470against the appellee, Daniel Beck Hon, on May 24, 1961. In her bill she sought alimony and in aid thereof had an attachment issued and levied upon her husband’s property. She also sought and obtained an injunction enjoining and restraining her husband from selling or encumbering any property which he owned.

On June 22, 1961, the appellant filed an intervening petition in the divorce suit on behalf of itself and all other creditors of Daniel Beck Hon. In this petition, the appellant alleged that it was a bona fide creditor of Daniel Beck Hon by virtue of an unpaid balance on a promissory note of $781.36, a check endorsed to it by Hon but not paid on presentment, and two secured notes in the amount of $15,322.15 and $24,000.00, respectively, neither of which were then due. This petition further alleged that Hon was insolvent. The appellant prayed to be allowed to intervene in the divorce suit, that all the creditors of Daniel Beck Hon be notified by publication and required to present their claims against him; that appellant have judgment against him for the above amounts, and that a receiver be appointed to take possession of all of his property, and that a special master be appointed to make an accounting of his assets and liabilities.

On June 26, 1961, Robert H. Rowe filed a petition joining in the petition of the appellant herein and averring that he had filed a suit in Chancery Court against the appellee herein for fraudulent misappropriation of trust funds.

On June 27, 1961, the petition of the appellant herein was sustained as a general creditor’s bill, publication for the creditors was ordered, and a receiver was appointed.

[471]*471At tlie time of the appointment of a receiver, the ap-pellee herein was an inmate at Eastern State Hospital. Barbara Jean Hon then filed a motion to discharge the receiver on the ground that the receivership was unnecessary since her husband was confined, as indicated, but this motion was overruled.

On July 21, 1961, the appellee, Daniel Beck Hon, filed a plea in abatement to the intervening petition of appellant therein alleging that a bill had been filed in the Chancery Court by John I. Foster, Jr., a business associate of Daniel Beck Hon, to wind up their business affairs. This plea was apparently never acted upon by the Court.

On July 24, 1961, the Circuit Court on its own motion transferred the entire case to the Chancery Court on the ground that an injunction had issued from the Chancery Court upon the prayer of John I. Foster, Jr., enjoining all parties from further action in the Circuit Court and on the ground that such could be done under Section 16-511, T.C.A.

Thereafter, the case was remanded to the Circuit Court by the Chancellor, and in his memorandum opinion, which accompanied the remand, the Chancellor pointed out that the injunction issued by him in the case of Foster v. Hon, et al. did not enjoin the parties from proceeding with the divorce case, but only enjoined further proceedings in the Circuit Court by those with claims against the property of Hon and Foster. The Chancellor was of the opinion that Section 16-511, T.C.A. was not applicable because the Circuit and Chancery Courts have concurrent jurisdiction of divorce cases, and the Court which first obtains jurisdiction must retain it. He cited as authority Ham[472]*472ilton National Bank, etc. v. Champion, 202 Tenn. 205, 303 S.W.2d 731. The Chancellor stated that the intervening petition filed by the appellant herein came within the jurisdiction of the Chancery Court but did not order that such petition be filed in the Chancery Court, but did indicate that the Circuit Judge could, if he so desired, dismiss said intervening petition.

Thereafter, and upon consideration of the Chancellor’s memorandum opinion and because the petitioner and all other creditors of Daniel Beck Hon were enjoined from proceeding further in the Circuit Court, the Circuit Judge dismissed the intervening petition of appellant. To the action of the Court the appellant duly excepted and perfected an appeal to this Court. The question presented by this appeal is whether it was error for the Circuit Judge to dismiss the intervening petition. In general terms the question is whether a creditor may intervene and file a general creditor’s bill in a divorce suit in which the wife seeks some of the husband’s property and, if so, is it error to dismiss such when further action by the petitioner is enjoined by the Chancery Court.

However, before considering these questions on their merits, we are faced with a motion to dismiss this appeal, which, if sustained, is determinative. The basis of this motion is appellee’s contention that the question is now moot since the appellant has had the relief sought in its intervening petition and since no effective relief can be granted.

To support the motion, appellee brings before us a certified copy of the proceeding in the case of John I. Foster, Jr. v. Daniel Beck Hon et al., in the Chancery Court in which it is averred that appellant filed a cross [473]*473bill, participated, and received tbe relief tbat it was requesting in tbe Circuit Court, namely, a determination of tbe assets and liabilities of Hon, a determination of tbe claims against him, and tbe liquidation of bis assets to pay bis debts. Therefore, be contends tbat appellant is estop-ped to continue this appeal. The appellee contends further tbat tbe case of Barbara Jean Hon v. Daniel Beck Hon in tbe Circuit Court lias been concluded by tbe granting of a divorce to tbe wife and tbat, therefore, no relief can be granted because there is no longer a case pending between tbe original parties in which tbe appellants might intervene.

Tbe appellant in its reply to this motion to dismiss also presents parts of tbe transcript from tbe proceedings in the Chancery Court and argues tbat tbe question is not moot. On tbe contrary, it alleges tbat it has continuously objected to tbe Foster suit in tbe Chancery Court but, being made a party thereto, bad no alternative but to insist on its rights in tbe property of Hon. It admits tbat tbe secured claims against Hon as originally set out in its intervening petition filed in tbe Circuit Court have been liquidated and paid, one through tbe Chancery Court, but insists tbat tbe unsecured claims remain outstanding. It also admits tbat tbe divorce decree has been entered in tbe Circuit Court along with awards of alimony and child support, but contends tbat it is entitled to yet intervene and have these awards modified to show tbat it is entitled to some of tbe proceeds from tbe alimony and child support awarded by tbe decree.

Finally, it contends tbat tbe appeal has not become moot.

[474]*474In the case of Knott v. Stewart County et al., 185 Tenn.

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

Related

Southall v. Billings
385 S.W.2d 97 (Tennessee Supreme Court, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
360 S.W.2d 20, 210 Tenn. 468, 14 McCanless 468, 1962 Tenn. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-national-bank-trust-co-v-hon-tenn-1962.