Brown v. Wygant

17 D.C. 447
CourtDistrict of Columbia Court of Appeals
DecidedJune 4, 1888
DocketNo. 10,666
StatusPublished

This text of 17 D.C. 447 (Brown v. Wygant) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Wygant, 17 D.C. 447 (D.C. 1888).

Opinion

Mr. Chief Justice Bingham

delivered the opinion of the Court:

The bill in this case avers, that on the 9th of February, 1874, one Thomas K. Raymond obtained a judgment against the complainant, on the law side of this Court, for $5,000; that the said Raymond assigned the judgment on the 14th of May, of the same year, to Stephen T. Wygant, the testator of the defendant; that on the 23d day of February, 1878, Wygant was duly adjudged a bankrupt by the District Court of the United States for the Southern District of the State of New York; that Wygant thereafter surrendered his property, including such judgment, the same being expressly mentioned in his schedule of assets; that, thereafter Henry T. Godet, of the City of New York, was duly chosen assignee in bankruptcy and qualified as such; that the estate of the said bankrupt has never been,settled; that the judgment was the principal asset passing as aforesaid ; and that claims largely in excess of the value of the assets were duly proven and allowed against the estate of the bankrupt.

[452]*452The judgment at law was rendered in cause numbered 11,757, and the record of the same is referred to in the bill of complaint as a part thereof, and the complainant files as an exhibit to his bill, a duly authenticated transcript of the bankruptcy proceedings.

The bill charges that the defendant was aware of these facts, but for the pm’pose of harassing the complainant and to put him to trouble and expense and in order that complainant might be induced to pay such judgment or a part thereof, and relying upon the complainant’s ignorance of such bankruptcy proceedings, on the 12th day of January, 1886, applied, by petition in writing, to the justice holding a special term of this Court for probate business, and by representing that such judgment was an asset belonging to the estate of said Stephen T. Wygant, who had died in the mean time, and that it was of little or no value, namely, of Jhe value of $100, on the day above mentioned obtained letters testamentary upon giving a nominal bond of $200.

The defendant on the 1st of February, 1886, caused a suggestion of the death of the said Stephen T. Wygant to be made in the circuit court and the issuance of a writ of scire facias by the clerk, and on the 4th dajr of February caused an alias writ of scire facias to be issued to the marshal which was returned with the-indorsement “nihil.”

On the 3d day of March, 1886, the defendant obtained a fiat from the Circuit Court. During all this time the complainant was a resident of the District, but neither of these writs was served upon him, nor any actual notice received by him thereof, nor of the proceedings in probate jurisdiction, nor on the law side until long. after they had taken place. As soon as he had received casual notice he applied, by his motion in writing to have the “fiat” set aside, to the Circuit Court, but the Court denied the motion for lack of power to act from lapse of time, but preserved his rights to proceed in equity, and he thereupon began this suit.

The defendant after the proceedings here in the Circuit [453]*453Court commenced a suit upon this judgment in the Supreme Court of the City of New York, on December 28, 1885. The complainant prays for process and injunctions against the enforcement of the judgment and the letters testamentary be declared invalid.

There was a demurrer to the original bill by the defendant which was sustained, and leave given to the complainant to amend by making the assignee in bankruptcy a party, and also to amend otherwise as he might be advised.

The bill was subsequently amended by making the assignee a party, by averring that the register in bankruptcy conveyed in writing to the assignee all the personal and real estate . of the bankrupt, and by attacking a duly certified copy of the assignment made by the register to the amended bill as an exhibit, and. by a further amendment averring that at the time the writs of scire facias were issued, complainant was. a resident of the District -of Columbia.

To this bill as- amended the defendant interposed a general demurrer, and the same was certified to this Court for hearing. The position of the defendant is that there is no equity in the bill; that it merely seeks to escape payment of a judgment debt. It is claimed that- a court of equity does not interfere with the judgments at law unless the complainant had a defense at law which he was prevented from availing himself of by fraud or accident. This doctrine, as stated here by counsel for the defendant, may be admitted. The further doctrine claimed by the defendant is, if the return of the marshal under these writs of scire facias was fraudulent, yet if the defendant in this suit had no connection with the fraud, no knowledge- of it, and did not procure it, the complainant has no standing in a court of equity to set aside a mere judgment in the obtaining of which there may have been fraud but with which the plaintiff in the law action was not connected. That is the general doctrine. But in this case we think the facts stated in the bill clearly show fraudulent action upon the part of the defend[454]*454ant. It is averred that the defendant with full knowledge of the facts that the testator had entered into bankruptcy, had been declared and adjudged a bankrupt, had made an assignment to the register — that with full knowledge that this judgment was a part of the schedule made by the register in the bankruptcy proceedings, came to this city and procured herself appointed as testatrix by the Orphans’ Court and went into the Circuit Court and by proceedings in that Court by scire facias obtained this judgment, and obtained the judgment in her name as testatrix. We think those facts and circumstances, if true as alleged in the bill, would show that the defendant in this action is guilty of fraud, and therefore the plaintiff has a standing in this Court, so far as that ground is concerned..

But it is claimed that the title of the bankrupt is not showm by the bill in this case, even as amended, to have been devested; that it is not shown to have passed to the assignee, and therefore the defendant in this action, as testatrix of the bankrupt, might claim title to this judgment and might have proceedings to revive it in her own name so that she might become possessed of it as testatrix, and in support of this we are referred to Thatcher vs. Rockwell, 105, U. S. 467; to Conner vs. Long, 104 U. S. 228,. and also to Frasier vs. Banks, 11 La. Ann., 31.

These cases were all under Section 5044 of the Revised Statutes, original section 14 of the Bankrupt Bill. In order to understand this proposition it is necessary to read the two sections of the statute Nos. 5044 and 5046. Section 5044 is as follows

“As soon as an assignee is appointed and qualified, the judge, or, where there is no opposing interest, the register, shall, by an instrument under his hand, assign and convey to the assignee all the estate, real and personal, of the bankrupt, with all his deeds, books, and papers relating thereto, and such assignment shall relate back to the commence-' [455]

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Related

Hampton v. Rouse
89 U.S. 263 (Supreme Court, 1875)
Conner v. Long
104 U.S. 228 (Supreme Court, 1881)
Frasier v. Banks
11 La. Ann. 31 (Supreme Court of Louisiana, 1856)

Cite This Page — Counsel Stack

Bluebook (online)
17 D.C. 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-wygant-dc-1888.