Byrne v. Allen

10 Haw. 668, 1897 Haw. LEXIS 55
CourtHawaii Supreme Court
DecidedMarch 4, 1897
StatusPublished
Cited by9 cases

This text of 10 Haw. 668 (Byrne v. Allen) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Byrne v. Allen, 10 Haw. 668, 1897 Haw. LEXIS 55 (haw 1897).

Opinions

OPINION OF THE COURT BY

JUDD, C.J.

(Circuit Judge Perry dissenting.)

This is a creditor’s bill for a discovery, an injunction and for an equitable attachment. The facts are succinctly as follows:

In an action at law plaintiff recovered judgment against tbe three first named defendants, and against the said A. Peek as garnishee, for $812 and costs. Personal service was made upon [669]*669the said garnishee, he being then in this country but at the time of filing this bill he had left these islands. The bill alleges that none of the principal judgment debtors or the defendant garnishee have any property within this Republic which can be come at or attached or taken on execution, but that there is a valid and subsisting contract whereby the Oahu Railway and Land Company, defendant corporation, has agreed, in consideration of certain labor and services of the said Eeelc to deliver him bonds of the said defendant corporation to the value of seven thousand dollars, upon the completion of the corporation’s railroad to Kaena Point on the Island of Oahu. Service being made on the defendant corporation, its general manager answered the interrogatories propounded admitting and setting forth particularly the nature of the contract with said Eeelc as follows:

“The Oahn Railway and Land Company agreed, in 1895, with A. Peek, to pay as a further consideration in final settlement of all claims, seven first mortgage bonds, bearing interest at five per cent., the par value of each bond to be $1,000. Said bonds to be delivered to A. Feek or order after completion of the present line of road from Waianae to Kaena Point, Isl- and of Oahu, or when extended to any other point on said island of equal distance. No bonds have been delivered under the agreement.”

Upon affidavit that Mr. ~W. A. Kinney, attorney at law, was the authorized agent or attorney of the said Eeelc to sell the before mentioned bonds, a temporary injunction was issued against the Oahu Railway and Land Company, enjoining them from passing the said bonds to said A. Peek, and also against the said Eeelc and "W. A. Kinney, Esq., his agent, attorney, &c., from passing, purchasing, transferring the said property of said Eeelc, or acknowledging any transfer in said bonds without the order of court, &e.

The plaintiff’s counsel then moved, upon affidavit that said A. Feek was not within the jurisdiction of the court to be [670]*670reached by personal service, but is a resident of the United States of America, that an order of service upon him be made by publication, or in such other manner as the court shall direct. The motion was heard and denied, and appeal is taken by plaintiff to this court.

Two important questions are raised. First, Is personal service upon Reek, the judgment debtor, essential in this case? and, secondly, Is there any provision in our statutes providing for a substituted service by publication or otherwise upon a nonresident defendant in a bill in equity of this character?

In discussing the first question, we remark that this is a “creditor’s bill,” distinctly provided for in the Act of 1878 concerning equity jurisdiction, Compiled Laws, p. 390, viz.: “Bills by creditors to reach and apply in payment of a debt, any property, right, title or interest, legal or equitable, of a debtor within this kingdom which cannot be come at or attached or taken on execution in a suit at law against such debtor.” ¥e have no doubt that equity had jurisdiction of creditors’ bills before the enactment of this definition, under the general powers given to the chancellor and the vice-chancellor “to hear and determine all matters m equity.” (Section 847 of the Civil Code.) The several Circuit Judges at chambers have now that jurisdiction (Sec. 37 of the Judiciary Act of 1892), and, according to Sec. 43 of the same Act, * * * * also the power “to make and award all such judgments, decrees, orders and mandates, to issue all such executions and other processes, and to take all other steps necessary for the promotion of justice in matters pending before them in chambers, and to take all other steps necessary to carry into full effect all the powers which are or may be given them by the laws of the kingdom,” &c.

Now, in a creditor’s bill the debt must be established by some judicial proceeding, and it must be generally shown that legal means for its collection have been exhausted. These requisites are alleged in the bill.

[671]*671Whether personal service is necessary in any case will depend upon tbe nature of tbe case. If tbe judgment sought is a personal one within the state, personal service must be had upon defendant, or he must make voluntary appearance, in order to obtain jurisdiction of the person of the defendant and fix his personal liability. But a judgment which operates upon the property is in the nature of a proceeding m rem, and does not require that personal service be had.

Quarl v. Abbett, 120 Ind. 236.

What is sought in the case before us is an equitable attachment of Eeek’s interest in the bonds of the railway company when (if) issued. The property or interest involved is within the jurisdiction of the Circuit Judge, and the proceeding here is substantially a proceeding in reto, id. The object of the bill is not to fix Eeek’s personal liability; that has already been accomplished in the former suit. In the leading case of Pennoyer v. Neff, 95 U. S. 727, this class of cases is especially excepted from the rule that personal service must be had. In that case Judge Eield says that in a larger and more general sense the term a “proceeding in rem” is applied to actions between parties where the direct object is to reach and dispose of property owned by them or of some interest in them. Id., p. 734. In such cases a substitute service by publication is good. See Arndt v. Griggs, 134 U. S. 316. “The object of notice by publication is to give the best notice practicable to non-resident defendants, and thus enable the court to fully decide the controversy respecting property within its jurisdiction, no matter what form the question may assume.” Quarl v. Abbett, supra, p. 239. All property which ought in equity to be applied to the payment of the debt can be reached by a creditor’s bill. A patent or a copyright can be reached by this means, even a right of action for injury to the debtor’s property. Hudson v. Plets, 11 Paige, 180.

Holding as we do that personal service on Peek is not essential [672]*672in this case, tlie second question is whether there is any statutory authority for substituted service on an absent defendant by publication, or otherwise, on a creditor’s bill.

We have already seen that equity had jurisdiction of such a bill by the Civil Code. In that code, enacted in 1859, we have in Sec. 1228 a provision that in certain cases mentioned under the title “Equity, Admiralty and Probate Matters,” the applications “shall be by sworn petition addressed to some court or justice having jurisdiction thereof.” We do not understand that this section is intended to confer jurisdiction upon the court in these matters and to exclude all other subjects of equity from its jurisdiction.

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Bluebook (online)
10 Haw. 668, 1897 Haw. LEXIS 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byrne-v-allen-haw-1897.