Berard v. Blais

186 A. 475, 56 R.I. 431, 1936 R.I. LEXIS 117
CourtSupreme Court of Rhode Island
DecidedJuly 20, 1936
StatusPublished
Cited by1 cases

This text of 186 A. 475 (Berard v. Blais) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berard v. Blais, 186 A. 475, 56 R.I. 431, 1936 R.I. LEXIS 117 (R.I. 1936).

Opinion

Flynn, C. J.

This cause is before us on the complainant’s appeal from a decree entered in the superior court by a justice in equity, sustaining the joint and several demurrer of the respondents, Cesaire Blais, Hector J. Blais and Lucy Blais, to the bill of complaint, and dismissing said bill. The bill of complaint is in the nature of a creditor’s bill, brought by the complainant as judgment creditor of the respondent Cesaire Blais, to reach and apply in payment upon his judgment the amount due to said respondent upon the promissory note of the other respondents, Hector J. and Lucy Blais.

It alleges, in substance, that the complainant obtained a judgment in an action at law in assumpsit against the respondent, Cesaire Blais; that execution thereon was issued, and was returned by the sheriff, charged with its service, wholly unsatisfied, and still remains unpaid; that the respondent, Cesaire Blais, holds in his possession and control a promissory note of said Hector J. Blais and Lucy Blais, secured by their real estate mortgage to him, upon which there is an overdue and unpaid balance; and upon these brief allegations the complainant prays that Cesaire Blais be enjoined from transferring or encumbering said note and mortgage; that he be ordered, pendente lite, to deposit the same in the custody of the court or in the custody *432 of a receiver to be appointed by the court for that and other purposes; and that he be ordered to endorse and deliver to the complainant said note, and assign said mortgage, as. partial satisfaction of the aforesaid judgment; and that, said Hector J. Blais and Lucy Blais be enjoined from paying any part of said note to Cesaire Blais; and for such other relief as may be deemed proper.

To this bill of complaint, the respondents filed their joint, and several demurrer, assigning as the principal reason therefor “that the said bill doth not contain any matter of equity whereon this court can ground any decree, or give to the complainant any relief against these respondents, or either or any of them.”

The justice in equity, after hearing thereon, sustained this demurrer and dismissed the bill of complaint. From a decree entered accordingly, the complainant duly claimed and prosecuted his appeal, which is now before us for review.

The substantial question, raised by the pleadings, is whether, on these allegations, equity may entertain a bill in the nature of a creditor’s bill to reach and apply, in satisfaction of a judgment debt, a chose in action of the debtor based upon a promissory note of a third party. The complainant contends that a liberal interpretation of chapter 973, public laws 1927, so as to give full effect to the scope intended by the general assembly in this enactment, justifies the bill of complaint, as brought. The respondent urges that, prior to 1927, equity had no jurisdiction to entertain such a bill in the absence of statute or of some showing of fraud or trust, or other equitable grounds for relief; and that said chapter 973 specifically exempts from the reach of such a bill, as is here presented, the monies due the debtor upon a promissory note executed by a third party.

We agree with the position of the respondent. Chapter 973, P. L. 1927, was passed by the general assembly in amendment of chapter 354, G. L. 1923, entitled: “Of the Remedy Given Judgment Creditors Supplemental to Execution,” and thereby added to said earlier chapter *433 the following section: “Sec. 4. Any judgment creditor, after his execution has been returned wholly or in part unsatisfied, may by proceedings in equity in the nature of a creditor’s bill reach and apply and subject to the payment and satisfaction of his judgment any equitable estate, any equitable assets or any chose in action of the judgment debtor, except such as shall be exempt from attachment by virtue of statutory provision. The remedy provided by this section shall be cumulative and shall not supersede any existing remedy.”

It will be noted from that portion of the above chapter, which we have italicized, that the relief in equity granted to a judgment creditor by this statute is extended not to all choses in action of the judgment creditor, but only to such as are not exempt from attachment by virtue of any statutory provisions. The particular things in action which are exempt from attachment by virtue of statutory provision are set forth in sec. 5, chap. 352, G. L. 1923, the pertinent portions of which read as follows: “Sec. 5. The following goods and property shall be exempt from attachment on any warrant of distress or any other writ, original, mesne, or judicial: ... 11. Debts secured by bills of exchange or negotiable promissory notes.”

It is clear from this earlier statute that choses in action, based upon a promissory note, were expressly exempt from attachment. Such exemption from attachment apparently has been recognized, at least from 1745. Oakdale Mfg. Co. v. Clarke, 29 R. I. 192. It follows, therefore, that such choses in action, being “exempt from attachment by virtue of statutory provision, ” -are clearly contemplated by the language of chapter 973 as a class of things in action to be exempt from the reach of such a creditor’s bill in equity. In our opinion, if this section of the earlier statute be read together with chapter 973, giving ordinary words their usual meaning, there can be little question but that .the language of chapter 973 specifically exempts a debtor’s chose in action, based upon a promissory note, from the *434 jurisdiction, of equity to reach and apply through a judgment creditor’s bill based solely on the latter statute.

But the complainant contends that we should interpret chapter 973, not in accordance with the letter of the law, but liberally in accordance with what he argues was the general legislative intent, namely, to provide enlarged relief to a judgment creditor, whereby he could subject to the payment of his judgment all assets and choses in action of the judgment debtor which were not previously or otherwise subject to attachment or execution at law. He cites several cases, decided chiefly in Massachusetts, Ohio, Vermont, and Montana, as illustrative of such a liberal construction given to statutes dealing generally with similar subject matter and purpose.

It is unnecessary to treat individually or in detail these cases, cited from other jurisdictions, because the sufficient answer to all of them is to be found in the respective statutes under which those cases were brought and according to which they were decided. It appears clearly from these cases, as reported, that all of the states referred to have statutes materially different from our own. All of them give much broader powers to equity in reaching and subjecting to the payment of debts the assets and things in action belonging to the debtor. None of them has any language, as ours, which expressly exempts certain choses in action of the debtor from the reach of a creditor’s bill, such as is presented in the instant case.

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Bluebook (online)
186 A. 475, 56 R.I. 431, 1936 R.I. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berard-v-blais-ri-1936.