Barker v. Peoples Loan & Savings Co.

173 S.E. 704, 178 Ga. 464, 1934 Ga. LEXIS 79
CourtSupreme Court of Georgia
DecidedFebruary 17, 1934
DocketNo. 9477
StatusPublished
Cited by7 cases

This text of 173 S.E. 704 (Barker v. Peoples Loan & Savings Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barker v. Peoples Loan & Savings Co., 173 S.E. 704, 178 Ga. 464, 1934 Ga. LEXIS 79 (Ga. 1934).

Opinions

Bussell, C. J.

In 1922 the owners of all the capital stock of Magnolia Cemetery sold their shares of stock to Peoples Loan & Savings Company for $75,000, receiving $10',000 cash and what purported to be certificates of preferred stock aggregating $65,000. In 1925 a new agreement was reached between the sellers and purchasers, and the sellers surrendered their stock certificates and received other certificates to the amount of $45,500. The business of the cemetery company was managed by Peoples Loan & Savings Company and E. W. Allen, its president, and who was also president of the cemetery company. Payments due under the terms of the stock certificates not having been made, the holders of a majority of this stock brought suit in 1929 against the Magnolia Cemetery Company, to enforce collection thereof. The Peoples Loan & Savings Company and E. W. Allen filed interventions to recover sums claimed to be due them by the defendant. The court referred the case to an auditor, who in his report found in favor of some of the contentions of plaintiffs and against others, and found certain sums due the Peoples Loan & Savings Company and E. W. Allen. The auditor stated: “Inasmuch as the Peoples Loan & Savings Company . . purchased all the capital stock of Magnolia Cemetery Company, paying for the same $10,000 in cash and contracting to pay the balance in yearly installments, . . I find that the petitioners under this contract of purchase do not occupy the position of stockholders, but that under the law they are creditors, and that the so-called certificates of preferred stock are in reality evidences of indebtedness setting forth, in the main, terms and conditions of the purchase of the capital stock of the Magnolia Cemetery Company.” The auditor found there was due petitioners [466]*466$2258.62 under the terms of the evidences of indebtedness held by them, and he rendered judgment therefor against the defendant, this judgment to be superior to the judgments in favor of the Peoples Loan & Savings Co. and E. W. Allen. Thereafter the plaintiffs filed an amendment to their petition, and prayed that all the property of the cemetery company be sold and the proceeds applied to the payment of their certificates of indebtedness, after payment of costs and expenses of the receivership proceedings. The defendant filed a response, joining in the prayer for a sale of the property. The court referred these pleadings to the auditor for findings on final disposition of all issues in the case. In his report the auditor found that the proceeds of the sale of the cemetery property, after payment of expenses and costs, should be applied to the payment of the purchase-price due to the plaintiffs, before the judgments in favor of the Peoples Loan & Savings Company were paid. This report was made the judgment of the court, and by order of the court the property was exposed for sale at public outcry. Some of the plaintiffs made a bid of $10,000; but they being unable to make the cash payment required at once, to pay expenses of the proceeding, the receiver again offered the property for sale on the same day, and it was knocked off to E. W. Allen at $6100, this amount being only about $100 more than the costs and expenses. The time for passing on the confirmation of this sale was postponed several times by the court at the instance of plaintiffs, but the sale was finally confirmed over objections. The plaintiffs excepted to the order of the court confirming the sale, and brought the case to this court, where the writ of error was dismissed on account of a defective certificate to the bill of exceptions. Eady v. Magnolia Cemetery Co., 175 Ga. 787, supra.

The instant suit was brought by two of the seven plaintiffs in the case just cited, in behalf of themselves and others who might intervene, against Peoples Loan & Savings Company, E. W. Allen, and Magnolia Cemetery Company. The petition is denominated a bill of review. It is set out that through inadvertence, accident, and mistake the judgment rendered in the prior case was against Magnolia Cemetery Company instead of against Peoples Loan & Savings Company, the purchaser of the capital stock of the Magnolia Cemetery Company; that the plaintiffs tendered the bill of exceptions in the Bady case to the judge, who stated that some corrections [467]*467should be made therein, but that he would do this himself, but instead of making the corrections in the bill of exceptions he embodied them in his certificate, and the writ of error was dismissed by the Supreme Court without fault of plaintiffs. They prayed that the judgment against Magnolia Cemetery Company be reviewed and corrected, which judgment should have been rendered against Peoples Loan & Savings Company; and that the judgment of the court confirming the sale of the property of Magnolia Cemetery Company be set aside. The defendants moved to dismiss the bill of review, and introduced in evidence the entire record in the case of Eady v. Magnolia Cemetery Company. The court sustained the motion. Error is assigned on that judgment.

In the petition it is set forth that by reason of the fact that the writ of error in the previous action was dismissed, without fault on the part of the plaintiffs in error, the present petitioners should in equity and justice be permitted to obtain a review of the trial in the Supreme Court of which they were deprived by the dismissal of a former writ of error; that the bill of exceptions in the previous case was dismissed because of the failure of the judge to approve the bill of exceptions and certify it, as required by the Civil Code (1910), § 6145, and that instead of doing this he inserted other matter into the certificate, qualifying certain portions of the bill of exceptions; that plaintiffs in error have lost substantial rights through no fault of their own, unless the dismissal of their bill of review be reversed. It is stated in the brief that in the Eady case, supra, “this honorable court refused to consider plaintiffs in error’s bill of exceptions, . . because the certificate of the presiding judge in the lower court was fatally defective. Obviously, plaintiffs in error lost the right to a hearing in this court through no fault of their own. . . Counsel for plaintiffs in error concede that if the case . . had been considered on its merits, its dismissal or an unfavorable decision therein in this court would have constituted res adjudicata. In as much as plaintiffs’ unfortunate plight is the result of ’mistake and inadvertence of other persons, and plaintiffs being powerless to correct the mistakes otherwise, they properly brought the instant action.”

It is provided in the Civil Code, § 6158, that “If the judge shall determine that the bill of exceptions is not true, or does not contain all the necessary facts, he shall return the same, within ten [468]*468days, to the party or his attorney, with his objections to the same in writing.” We can not agree with counsel for plaintiffs in error in this case that the alleged error or mistake of the judge of the superior court affords any basis for a bill of review. No reason is stated in the present petition which was dismissed, or elsewhere in the record, why the former bill of exceptions which was dismissed was accepted or filed by the plaintiffs in error. While under section 6145 it is the duty of the judge to certify in the precise form set forth, he is none the less required by law' to certify every bill of exceptions in which his judgments are to be reviewed by an appellate court, if everything material to the issues in the trial be truthfully stated.

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Bluebook (online)
173 S.E. 704, 178 Ga. 464, 1934 Ga. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barker-v-peoples-loan-savings-co-ga-1934.