Carrera v. del Pilar Hnos

9 P.R. Fed. 306
CourtDistrict Court, D. Puerto Rico
DecidedDecember 20, 1916
DocketNo. 172
StatusPublished

This text of 9 P.R. Fed. 306 (Carrera v. del Pilar Hnos) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carrera v. del Pilar Hnos, 9 P.R. Fed. 306 (prd 1916).

Opinion

HamiltoN, Judge,

delivered tbe following opinion:

This cause bas been before tbe court at different times, and now by consent of parties comes up for reconsideration of tbe referee’s report, wbicb allowed a lien to tbe claim of Tumet & Company under tbeir attachment. In order for full consideration, the whole matter is now taken under advisement.

1. It bas previously been decided in this case that attachment under tbe local law to secure tbe effectiveness of judgments is to be construed in pari materia with tbe attachment laws in the United States. That is to say, that tbe lien given in tbe one [308]*308case is substantially the same as the lieu given in the other case. The point was expressly kept open, however, as to when that lien began. This point is important because of the provision in the bankruptcy law avoiding liens within four months before bankruptcy. The judgment in the case was rendered February 2, within four months of the bankruptcy, and on March 2 there was an order of the local court directing execution to issue to the marshal. This was accordingly effected. The question, therefore, is Is the lien under the local law to secure effectiveness of judgments complete from the time the marshal takes the goods in possession under the order of attachment, or is there some element left incomplete until the issue of the execution under which the marshal sells ?

2. It cannot be said that the American Attachment Law is uniform in all the states. Alabama may be taken as a representative of the older states, drawing its legislative principles largely from Virginia, and conforming to common law even more than the eastern states. There attachment is carefully regulated by statute, and is granted upon bond in certain prescribed cases, being administrative and largely under the direction of the clerk. The judge has little to do. The attachment is pretty nearly the same as an advance execution. The levy of an attachment or service of a garnishment creates a lien in favor of the plaintiff. Ala. Civ. Code, 1907, § 2948; Bamberger, B. & Co. v. Voorhees, 99 Ala. 292, 13 So. 305. The lien is inchoate, and does not devest ownership. Judgment must follow or it is lost. Joseph v. Henderson, 95 Ala. 213, 10 So. 843. The subsequent bankruptcy of the defendant did not impair the lien under the Bankruptcy Act of 1867, which, however, proceeded aipon different principles from the present law, and left pro-[309]*309eeedings in attachment to be finished in the local courts in which they were begun. Martin v. Lile, 63 Ala. 406. Nevertheless the lien on personal property is lost if the defendant dies before judgment and his estate is declared insolvent. Seals v. Holloway, 77 Ala. 344. The liens are governed by the order in which they are levied, and a junior attaching creditor cannot obtain priority by first obtaining judgment. Alexander Bros. v. King, 87 Ala. 642, 6 So. 382. The theory there is that the property is in the hands of the court, and the procedure after judgment is not generally the levy of an execution, which is unnecessary, but an order to the sheriff to sell what he already has possession of. This is called a writ of venditioni exponas. If the property so sold does not satisfy the judgment, there may be an additional execution, to be levied on any other property of the defendant. Ala. Civ. Code, 1907, § 2971.

It has been held under the Connecticut law that the lien of an attachment is incomplete until judgment; and so, if the judgment is within the four months preceding bankruptcy, the lien cannot be considered as one protected against bankruptcy proceedings. Re Lesser, 108 Fed. 201. This has been denied as applicable under the Massachusetts law by the well-considered opinion of Re Blair, 108 Fed. 529, 530, by District Judge Lowell. In both states the attachment sale is under a subsequent execution. It is held in the Blair Case that the attachment lien is complete from the time of the levy, and that the subsequent judgment is important, not as adding any element to the lien, but as providing a method for enforcement. The principle may be considered analogous to that of a mortgage. The lien of the mortgage is complete from the time of the'execution of the mortgage, and the power of sale is a means of satisfaction rather than [310]*310an element in tbe lien itself. To tbe same effect is Re Beaver Coal Co. 51 C. C. A. 519, 113 Fed. 889, 891; Re Crafts-Riordon Shoe Co. 185 Fed. 931, 936; and Batchelder v. Wedge, 19 Am. Bankr. Rep. 268. Tbe Blair opinion is cited in tbe case of Metcalf Bros. v. Barker, 187 U. S. 165, 47 L. ed. 122, 23 Sup. Ct. Rep. 67.

This result has been expressly declared by tbe Supreme Court in tbe case of tbe lien secured by filing a creditors’ bill under tbe New York law. Tbe failure to secure tbe judgment will devest tbe lien, but will not affect tbe fact that a complete lien originally existed. Metcalf Bros. v. Barker, supra. Tbe reasoning in tbe Blair Case was approved by tbe Supreme Court in considering the matter of equitable liens; but was it adopted, and does it represent tbe present state of American law as to legal, as distinguished from equitable, remedies ?

3. Tbe case of Clarke v. Larremore, 188 U. S. 486, 47 L. ed. 555, 23 Sup. Ct. Rep. 363, throws light upon tbe point. There it was held that neither the levy of an execution nor tbe sale of tbe property changed the title so as to affect third parties, and that accordingly proceedings in bankruptcy' affected tbe money proceeds in tbe sheriff’s bands as still tbe property of tbe defendant. This shows that the title to the property levied on is not changed by an execution until tbe money proceeds are delivered over to tbe plaintiff. A fortiori there can be no change of title because of an attachment levy until tbe money is realized on tbe sale, and it is turned over to tbe plaintiff. Attachment is in tbe nature of a preliminary execution, but it certainly is not stronger than execution. In tbe Larremore Case tbe judgment, execution, and sale were all within four months of tbe bankruptcy, but this does not seem to be tbe only basis of [311]*311tbe decision. Tbe reasoning of the court would indicate, tbat, independently of this, even if every step bad been complete four months before tbe bankruptcy except tbe payment to tbe plaintiff tbe title nevertheless would pass to tbe trustee. Tbe lien from legal proceedings, therefore, would not confer any vested right upon tbe plaintiff as against creditors in bankruptcy, whatever might be true as between plaintiff and defendant alone. Tbe conclusion would seem to be, therefore, tbat a lien created by a creditors’ bill in equity is of a different character from tbat of an attachment or execution at law; tbe former being complete and creating a vested right against tbe world, tbe latter being incomplete and conditional as regards third parties. Tbe plaintiff’s right is not complete as against tbe defendant’s creditors in bankruptcy. So seems the law to stand in the United States.

4. Tbe precise question to be determined is whether, under tbe Porto Pico law, a complete lien is to be considered as created by tbe levy of tbe attachment upon tbe personal property in this case. If so, it was prior to four months before bankruptcy and will be protected. If not, it will not be protected.

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Related

Metcalf v. Barker
187 U.S. 165 (Supreme Court, 1902)
Clarke v. Larremore
188 U.S. 486 (Supreme Court, 1902)
Martin v. Lile
63 Ala. 406 (Supreme Court of Alabama, 1879)
Seals v. Holloway's Adm'r
77 Ala. 344 (Supreme Court of Alabama, 1884)
Alexander Bros. v. King & Co.
87 Ala. 642 (Supreme Court of Alabama, 1888)
Joseph v. Henderson
95 Ala. 213 (Supreme Court of Alabama, 1891)
Bamberger, Bloom & Co. v. Voorhees, Miller & Rupel
99 Ala. 292 (Supreme Court of Alabama, 1892)
In re Lesser
108 F. 201 (S.D. New York, 1901)
In re Blair
108 F. 529 (D. Massachusetts, 1901)
In re Beaver Coal Co.
113 F. 889 (Ninth Circuit, 1902)
In re Crafts-Riordon Shoe Co.
185 F. 931 (D. Massachusetts, 1910)

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Bluebook (online)
9 P.R. Fed. 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carrera-v-del-pilar-hnos-prd-1916.