Bank of Mississippi v. Duncan

52 Miss. 740
CourtMississippi Supreme Court
DecidedOctober 15, 1876
StatusPublished
Cited by16 cases

This text of 52 Miss. 740 (Bank of Mississippi v. Duncan) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Mississippi v. Duncan, 52 Miss. 740 (Mich. 1876).

Opinion

Simrall C. J.,

delivered the opinion of the court.

In 1843 Brown Brothers & Co. brought a suit in chancery against the Bank of Mississippi, and its directors personally, alleging that they were creditors of the bank to the amount of about $150,000, and that the officers of the bank and its directors were wasting and misapplying its assets.

Pending the litigation Charles A. Lacoste was appointed receiver, with instructions to take possession of its property, bills receivable, and assets generally. His bond, in the penalty of $300,000, with Duncan and Marshall sureties, was payable to Robert H. Buckner, chancellor, and his successors.

An amended and supplemental bill alleged the recovery of a judgment at law since the filing of the original bill.

In 1855, on demurrer of the defendants, the original and •supplemental bills were dismissed for want of jurisdiction in a icourt of equity to grant the relief. The cause, however, was [742]*742retained for the purpose of settlement with the receiver; On appeal the decree was, in 1856, affirmed. The substance of that part of the decree was “to close his accounts as receiver * * * and compel the return of the assets * * or their proceeds into court.”

On the return of the cause to the chancery court Lacoste was ordered, on the 16th of December, 1856, to make his report by the 20th of the next March, with instructions to' bring or pay into court all moneys by him collected, and all notes, bonds, bills of exchange, and also all renewals taken in substitution, payment, or compromise.

After some delays, in 1857, the receiver made his report,. In October of that year the exceptions to it were sustained, except as to his compensation, which were overruled, and he-was discharged from contempt.

On the 23d of November, 1857, the papers in the cause, the report and the exceptions thereto, were referred to W. L. C. Nugent, as commissioner, it being recited that Lacoste hacl removed from the state. On the 25th of the same month Nugent reported, charging Lacoste with $125,000 of money,, and $223,411, the amount of bonds, notes, and bills receivable', which came to his hands. This report was on the same day-confirmed. Thereupon it was ordered that a scire facias issue predicated on the bond, according to the statute in that case provided, commanding the parties to appear on the 14th of May, 1860, to show cause why the court should not proceed to assess the damages, claimed to amount to $300,000. The writ was sued out against the sureties alone.

Marshall and Duncan demurred, and assigned for causes :

1. That the pretended act of the legislature under which the scire facias was sued out was unconstitutional and void.

2. The court has no jurisdiction.

3. The Bank of Mississippi is not in existence.

From the decision sustaining the demurrer and dismissing-the writ the bank prosecutes this appeal.

It is common practice of the chancery court, in proper cases» [743]*743to appoint a receiver to take charge of property or a fund the Subject of litigation. ...

No more is adjudged thereby than that it does not seem reasonable that either party should hold it. The appointment is provisional. The receiver holds as the officer of the court, and the property or funds are esteemed in custodia legis, awaiting its decision as to the final disposition.

It would seem hardly to require the aid of argument or authority to prove that if the court takes the fund out of the possession of the defendant, although it may afterwards be satisfied that it has no jurisdiction to grant the relief sought by the complainant, and for that reason dismiss his bill, it has power to retain the cause for the purpose of repairing thp wrong and making restitution.

That has become res adjudícala by the affirmance of the chancellor’s decree.

The question which has been chiefly discussed by counsel is whether it was competent for the legislature, under the constitution of 1832, to have passed the statute of 1858, giving the remedy by scire facias on the receiver’s bond. That presents the general question whether the legislature was restrained by the constitution from conferring upon the chancery court power to give full redress against the receiver and his sureties. It has not been controverted that the court, by virtue of its ordinary equity powers, could compel the receiver to account and pay the fund into court, or as it might direct, and enforce obedience to its orders by attachment or other proceedings, as for contempt of its authority.

But it is urged that, according to the distribution of the judicial power in the constitution, the remedy upon the bond was purely legal, and was conferred on the circuit court. The constitution, in express words, vests the judicial power in the several courts therein provided for.

Capacity is conferred upon the one or the other of the courts to hear and determine every suit that may arise. The judicial [744]*744power has been exhausted; and every right can be vindicated, and every wrong, public and private, be punished or redressed in one or another of the courts specifically named.

When the legislature, under the 24th section of the 4th article, established inferior courts, it did and could do no more than intrust to such tribunals cognizance over certain subjects inferior to that exercised by a court specifically established by the constitution. As instances were the criminal courts, the vice chancery courts, and the county courts.

There is no room for cavil as to the jurisdiction of the high court of errors and appeals. The language of the 4th section is in both the affirmative and negative form, conveying the idea that all other power is excluded except such as is embraced in the affirmative words, “ shall have no jurisdiction but such as properly belongs to a court of errors and appeals.” Original pleas and plaints are excluded. Whilst the intent was to give exclusively the appellate jurisdiction, it was intended that it should be full and complete. Hence it has uniformly exercised all incidental power necessary to the complete and adequate exaction of its exclusive appellate power, such as giving judgment on appeal and writ of error, bonds, recognizances, and the like.

In considering the distribution of power among the courts of original jurisdiction, it must be borne in mind that the convention had reference to an existing body of jurisprudence which had its origin in the mother country, but had been greatly modified in adapting it to the circumstances of a new country, as well as by legislation. It had, however, retained its essential features, both in respect of its principles and modes of procedure. There was that grand body of unwritten law — including the common law, strictly so-called, and equity law — which had been administered in separate courts, conducting business by different formulas and modes of .trial.

Constrained by the judicial history and traditions of the past, the convention of 1832 must of necessity organize courts to-[745]*745■administer this jurisprudence according to the departments into which it was divided and upon the models which experience had approved.

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Bluebook (online)
52 Miss. 740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-mississippi-v-duncan-miss-1876.