Bevans v. Dingman's-Choice Turnpike

10 Pa. 174, 1849 Pa. LEXIS 190
CourtSupreme Court of Pennsylvania
DecidedMarch 28, 1849
StatusPublished
Cited by2 cases

This text of 10 Pa. 174 (Bevans v. Dingman's-Choice Turnpike) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bevans v. Dingman's-Choice Turnpike, 10 Pa. 174, 1849 Pa. LEXIS 190 (Pa. 1849).

Opinion

Rogers, J.

The respondent takes three principal grounds of defence: that a bill of discovery does not lie against a corporation; that the act giving relief, does not embrace choses in action, or moneys due and payable; and that the remedy of a creditor of an insolvent corporation is by sequestration. These exceptions touch the merits of the bill, and go to the jurisdiction of the court and. the disability of the plaintiff, and, in the view we take of the case, are the only ones we deem it necessary to notice. The respondent’s positions are, that the act of the 16th of June, 1836, which gives a bill of discovery, does not relate to corporations defendants, nor to the discovery of debts or money, but only to natural persons, and to real or personal estate. But the 9th and 10th sections of the act, we conceive, use words sufficiently comprehensive to include corporations. The 9th section provides that the plaintiff in any judgment shall have a bill of discovery of'the real and personal estate of the defendant in the judgment. And the 10th section, that the said bill may be filed against the defendant in the judgment, and against any person who may owe, or be accountable for the same, or may have knowledge of the same. Here the corporation are defendants in the judgment, and as such, it cannot be denied, come within the letter of the act. They are also included in its spirit, for unquestionably there is as much.reason they should be subject to this searching process, as [176]*176natural persons; for they, or those who have the management or direction, as well as individuals, sometimes remove, transfer, or conceal their assets, and, by reason of such concealment, or fraudulent transfer or encumbrance, prevent a complainant from having execution of his judgment.

The act, so far at least as it relates to the discovery of fraud, is highly remedial, and is entitled to a liberal construction, so as to advance the remedy and suppress the mischief. ■ There is little weight in the argument that the answer of the defendant is required to be on oath, and that a corporation never answers on oath, but under its corporate seal: Angell & Ames on Corporations, 523. For although this be true, the officers and servants of the corporation may.be made parties to a suit for the purpose of eliciting from them a discovery on oath, of the matters charged in the bill. Joining officers of a corporation in a bill, being an exception to the rule which forbids a mere witness from being a party: 1 Vern. 117; Wych v. Meal, 3 P. Wms. 310; 14 Ves. 1255; Dummer v. Corporation of Chippenham, 2 Story’s Equity, 714. In addition to the authority conferred by this act, the act of the 16 th of June, 1836, relating to the jurisdiction and powers of courts, 13th section, gives to the Supreme Court, and Courts of Common Pleas, the jurisdiction and powers of a court of chanceiy, so far as relates to the supervision and control of all corporations other than those of a municipal character. The act provides, that in every case in which any court, as aforesaid, shall exercise any of the powers of a court of chancery, the same shall be exercised according to the practice in equity, prescribed and adopted by the Supreme Court of the United States, unless it be otherwise provided by act of Assembly, or the same shall be altered by the Supreme Court of this Commonwealth, by general rules or regulations. In The Commonwealth v. The Bank of Pennsylvania, 3 W. & S. 173, it was ruled that the control of the court over corporations, was, under the act, general and unlimited. And the court refused to dissolve an injunction against the Bank of Pennsylvania, charged, as a depositee and trustee, to prevent them from paying away or assigning the funds, although the answer denied the trust.

But it is said a bill of discovery does not lie, as to debts or money due the defendant, but only extends to real and personal estate. But we think dioses in action, by a fair construction, are embraced in the 11th section. The section provides, that a bill may be filed against the defendant in the judgment, and against any person having possession of such real and personal estate, or who may owe, [177]*177or be accountable for the same, or may have knowledge of-the same. "We are not at liberty to discard the words in the latter clause of the section. They are pregnant with meaning, and although the idea is awkwardly expressed,-it is difficult to account for the introduction of the words “who'may owe, or be accountable for the same,” except on the supposition, they were intended to reach the case of an attempt by the defendant to conceal the debts due to himself. To give the section any other construction, would, greatly impair the beneficial operation of the act. In many cases the principal assets consist in debts (as in the ease of a merchant, trader, or a bank), which a fraudulent defendant may be desirous, to conceal, and thus elude the grasp of creditors. We see no reason for the distinction, and none has been given. The legislature, it is probable, believed that all the assets of every description were included in the words, “personal and real estate;” but to remove all difficulty, they added the clause to which reference is made. And what makes this supposition more plausible, is, that in the act of the 13th of June, 1836, relating to the commencement of actions, the legislature uses the words personal estate, personal property, as synonymous with goods and effects: Vide sections 44, 48, 49, 50, 54, 55, 56, 57, 59, 60. That the words personal estate, are used in an enlarged sense, comprehending stock in a corporate body owned by a defendant, deposits of money in bank, and debts due and owing, appears in the 20th and 22d sections of the act of the 16th of June, 1836, an act relating to executions. We are of opinion, therefore, the defendant has failed in-the two first reasons assigned. A bill of discovery will lie as well against a corporation as an individual, under the act of the 16th of June, 1836, and the remedy extends to all the estate of the defendant in the judgment, of every description, whether it consists of real or personal estate, goods and chattels, dioses in action, or, in the language of the act, money due, or to become due.

- Is the judgment-creditor entitled t'o the remedy against an insolvent corporation ? is the next question.

The objection to the mode of the proceedings adopted by the complainant, is, that it gives a preference to one creditor, in exclusion of' all others, violating, as the defendants contend, the plain provisions of the act of the 16th of June, 1836, which directs the manner of executions against corporations. The act was intended to provide a system for such cases, for, after particularly providing for the manner of proceeding on executions against corporations' defendants, where there is personal and real property, the legisla[178]

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Bluebook (online)
10 Pa. 174, 1849 Pa. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bevans-v-dingmans-choice-turnpike-pa-1849.