Boynton v. Rawson

1 Cl. Ch. 584
CourtNew York Court of Chancery
DecidedApril 15, 1841
StatusPublished
Cited by1 cases

This text of 1 Cl. Ch. 584 (Boynton v. Rawson) is published on Counsel Stack Legal Research, covering New York Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boynton v. Rawson, 1 Cl. Ch. 584 (N.Y. 1841).

Opinion

The Vice Chancellor.

The counsel, in their very able and ingenious argument of the questions presented by the report and exceptions in this matter, seem to me, after all, to differ more, as to the definition of terms, than to the legal principles. The leading principles, as to liens acquired by creditors’ bills upon the property of the judgment debtor, not tangible by execution, as settled by a series of decisions in our own courts, seems to be fully recognized by all parties.

[588]*588The order of the liens of judgments, executions and creditors’ bills, seem to be well understood. In judgments, priority is given to the age of the docket; executi°ns> to priority of delivery to the sheriff and levy, and in creditors’ bills, to priority of filing the bill or commencement of the suit. In pursuing the remedy in this court, the vigilant is favored; and the judgment creditor who first exhausts his remedy at ^aw’ ^7 procuring an execution to be returnedunsatisfied, and files his bill in this court to pursue and hunt out the equitable or consealed assets of the judgment debtor, will, even though he be thé youngest in judgment, and the last in execution, if he comes here first, have here in this court, priority over all the others as the reward of his diligence. This is' an undoubted and undisputed proposition. Chancellor Walworth, in Corning vs. White, (2 Paige, 568,) says, also, that a creditor’s bill, under the Revised Statutes, operates as an attachment upon property which cannot be levied upon by law. The difficulty in this case is not in the principles, or in the reconciling conflicting principles, but in adapting known and settled principles to the facts before us. In this matter the complainants in the first suit filed their bill long first, but withheld service of process, or giving any notice that such bill was filed, until after process both the other suits was served. The complainants in the third suit filed their bill second, in point time, but also withheld service of process,, and giving any notice that their bill was filed, until after process in the second suit was served. The complainants in the second suit filed their bill last, but allowed it up immediately by service of process, and with so much diligence, that although their bill [589]*589was filed last, process thereon was served nearly five months before any process was served in either of the other suits. Now, under the rule that the diligent creditor, who first commences his suit in this court, obtains the first lien; under the above state of facts, which of these complainants have, in judgment of law, first commenced their suit in this court? The inquiry, in point of fact, is narrowed down to what constitutes a commencement of a suit in this court, and what, in legal effect, is meant the term 66 filing a bill ?”

But though the inquiry may seem so narrow, its solution is not without its embarrassments and difficulties ; and indeed, its solution would probably be different under different circumstances. The fact of “ litis pendentis,” is in many suits an important fact, vitally affecting others who come in subsequent to the lis pendens, and are held bound thereby, even though in reality they knew nothing about the pending suit. Authorities would not therefore be likely to leave us in the dark as to what constitutes a pending suit, or “ Us pendens.” In an anonymous case (1 Vernon’s Rep. 318) it was held “ that a subpoena served and a bill filed is a lis pendens against all persons ; but a service of a subpoena without a bill being actually filed, makes no Us pendens ; but the bill ■being filed, the lis pendens comes from the service of the subpoena, though it be not returnable until the next term, and though the party lives never so remote.” Sugden on Vendors, (page 495,) also says, “ When the bill is filed, the lis pendens begins from .the service of the subpoena,” and cites the case in Vernon. Chancellor Kent, in Murray vs. Ballou, (1 Johns. Ch. Rep. 576,) also says, “ The estab[590]*590lished rule is, that a Us pendens, duly prosecuted and not collusive, is notice to a purchaser, so as to affect and bind his interest by the decree, and the lis pen-dens bee-ins from the service of the subpoena after the bill is filed.” • See, also, Jackson vs. Dickinson, (15 Johns. Rep. 309.) In Roberts vs. Jackson, (1 Wendell’s Rep. 478,) this principle received a practical application. A bill was filed on the 13th Feb. injunction granted. Four days afterwards, to wit, on the 17th Feb. other parties obtained a judgment, which was a lien upon the land,' the subject matter of the litigation. The Supreme Court held to the same doctrine laid down by Chancellor Kent in the above cited case of Murray vs. Ballou, that the Us pendens begins from the service of the subpoena after the bill is filed; and in the case before them, they held that, inasmuch as there was no proof of service of the subpoena or of actual notice before judgment docketed, the sale under the judgment docketed, four days after the filing of the bill, conveyed a valid title; in other words, that there was no Us pendens, because there was no proof that the subpoena was served, before the docketing of the judgment.

So much authority it has been thought desirable to glance at, to show what was formerly deemed necessary to be done before there could be held to be a pending suit in this court, to affect those who might subsequently become connected with the subject matter of the litigation. The litis pendentis, thus perfected by the service of process, destroyed the vendible power of the defendant over the subject matter of the litigation, or, at least, rendered the exercise of such power subject to the just claims of the complai[591]*591nant in the pending suit. For the purposes of a wise public policy, it had the effect of notice to even strangers to the litigation.

But the counsel for the complainants in the first suit, say that all these cases were in relation to real estate, and as against subsequent bona fide purchasers; and as the doctrine of lis pendens was in any event a hard one as against bona fide purchasers, the court in such cases will not hold the Us pendens ** perfect until subpoena served. He insists that the cases here presented are different, as the contest is not between the complainant and a bona fide purchaser, but between creditor and creditor. I cannot perceive the force of this distinction, and it certainly was not taken in the case of Roberts vs. Jackson above cited, where a subsequent judgment creditor, after bill filed and before subpoena served, was held to have the better equity as against the complainant in the Chancery suit. The same counsel also seems to suppose that the statute under which these suits are brought, has a bearing upon this question. If it has, I am unable to perceive it. The statute only affirmed a previously well recognized ground of jurisdiction in this court, and was passed probably because there was, or appeared to be, some apparent conflict in former decisions. It introduces no new rule either as to principle or practice. It gives no new lien; and when the courts say that a creditor’s bill filed under it is a lien upon the property which cannot be levied upon at law, they only affirm anciently established principles, and mean to declare that, in this, as in all other cases, the party who is first in this court with a pending suit, shall first reap the rewards of his diligence. To determine what a [592]

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Bluebook (online)
1 Cl. Ch. 584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boynton-v-rawson-nychanct-1841.