Cheatham v. Pearce & Ryan

89 Tenn. 668
CourtTennessee Supreme Court
DecidedFebruary 17, 1891
StatusPublished
Cited by9 cases

This text of 89 Tenn. 668 (Cheatham v. Pearce & Ryan) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheatham v. Pearce & Ryan, 89 Tenn. 668 (Tenn. 1891).

Opinion

Ed BaxteR, Sp. J.

On July 22, 1889, F. R. Cheatham filed a bill in the Chancery Court 'at Nashville against C. S. Pearce and Thomas Ryan, partners under the firm name of Pearce & Ryan,- and also against O. B. Pearce and C. D. Pearce.

Complainant charged that he was the holder of five promissory notes, aggregating $4,448.40, executed by Pearce & Ryan; but none of them were due when the *bill was filed.

Complainant further charged that the firm of Pearce & Ryan pretended to sell out their stock of goods and property to C. B. Pearce and C. D. Pearce for about $43,000; that C. B. and C. D. Pearce lived in Kentucky, and were, respectively, the father and brother of the C. S. Pearce who was a member of said firm; that no record of said sale was made; that the terms of the sale were not given out in any way; and that no explanation had been made as to how the $43,000 had been paid.

Complainant charged that said sale was a false and fraudulent disposition of the property pretended to be sold, and that it was intended to cheat, hinder, and delay the creditors of said firm.

Complainant charged that said firm, and said [673]*673C. B. and C. D. Pearce, -were in consultation oyer tlie matter before executing said device, and each, of them knew that said firm was insolvent, and could not meet its liabilities.

Complainant charged that if the $43,000 was paid in cash, said firm had it in their possession, and it was liable for the payment of complainant’s debts; that if said firm did not have said money in their possession, they had made a false and fraudulent disposition of it; and that if said money had never been paid to said firm, all the property and effects pretended to be sold should be subjected to complainant’s debts.

Complainant charged that the property sold was worth $10,000 or $15,000 more than the $43,000 pretended to be paid for it.

The bill prayed that defendants be required to answer, but not under oath, which was expressly waived; that C. B. and. C. D. Pearce be enjoined from selling or disposing of any of said property which they had pretended to purchase; that the same, or a sufficiency thereof, be attached; that a receiver be appointed to take charge of said property and sell it; that a judgment be rendered in complainant’s favor upon said notes, and for general relief.

Other persons were made defendants, and other matters were stated in the bill; but as it has been dismissed and abandoned as to those persons and matters, they need not be^ referred to hereafter.

On September 2, 1889, C. S. Pearce and Thomas [674]*674Pyan, composing the firm of Pearce & Pyan, filed a plea in abatement to so much and such parts of the bill as seek to attach their property; and they aver that it is not true that the sale by defendants, Pearce & Pyan, to C. B. and C. D. Pearce, composing the firm of C. D. Pearce & Co., of their stock of goods and fixtures, was a false aud fraudulent sale and disposition of their property; or that it was made to cheat, hinder, and delay the creditors of said Pearce & Ryan; or that it was made to cover the property, and prevent the joint creditors of said firm from making their recovery out of the property of said firm; or that the sale was a pretended sale; or that it was a trick, device, and fraud resorted to for any purpose.

The plea denies that the consideration for said sale was not paid to Pearce & Pyan by C. L>. Pearce & Co. at the time of their pur-chase; or that Pearce & Pyan had made a false and fraudulent disposition of said .consideration; or that said sale was made with a view to their failure. The plea also denies that said stock of goods was worth more than the price paid to Pearce & Ryan by C. D. Pearce & Co. The plea avers affirmatively that “ on July 17, 1889, Pearce & Pyan sold and delivered to C. D. Pearce & Co., in good faith, and at a full and fair price, namely, for the sum of §43,580.23, all of the goods, wares, and merchandise then belonging to them situated in their store-house on Market Street, Nashville, Tennessee, and including also' certificates or warehouse [675]*675receipts for 500 barrels of whisky in the warehouse of Charles Nelson, and that on- the same day the purchasers paid to them $48,410.17 of said money by their check, which was afterward, and within two days thereafter, paid to said Pearce & Ryan, and that within a short time thereafter the said purchasers paid the balance of $170.06 to said Pearce & Ryan;- and that upon the day of said sale, to'wit, July 17, 1889, all of said property so sold by them was delivered to C. D. Pearce & Co., and that said C. D. Pearce & Co. took possession of them,” etc. The plea was sworn to by C. S. Pearce alone. We construe the plea as amounting, in substance, to nothing more than a negative plea, denying that the sale was fraudulent, the affirmative averments contained in the plea being a mere statement of the facts upon which the defendants rely to support the denial. '

On the same day Pearce So Ryan filed their answer “to so much of the bill of complaint” as is not covered by their plea filed thereto. On the same day C. B. and C. D. Pearce filed a plea in abatement “to the said bill so far as the same makes any charges or seeks any relief against them.” This plea contains substantially the same matters of denial, and the same affirmative matters as are averred in the plea of Pearce So Ryan; and in addition thereto it avers that after the property was delivered to C. B. and C. D. Pearce, they held possession of the same until a portion of it was levied on by the attachment in this cause. [676]*676We place the same construction upon this plea that we have placed upon the plea of Pearce k Eyan. This plea was sworn to on September 2, 1889, by J. M. Dickinson, the affidavit being in the following form: “Mr. Dickinson makes oath that he is agent and attorney for C. B. Pearce and O. D. Pearce, defendants in the foregoing plea, and that he is acquainted with the facts set out in said plea, and that they are true in substance and in fact.” This plea was not accompanied by an answer. ' °

On November 15, 1889, complainant moved “to strike from the files the plea purporting to be a plea in abatement filed for Pearce k Eyan, because not signed by Defendant My cm, and because it is insufficient.” The Chancellor, on November 18, 1889, refused, and overruled the motion. The complainant excepted.

The fifteenth assignment of error by complainant is that “ the Chancellor erred in not striking out the plea in abatement of the firm, because it was not signed by the firm Pearce & Eyan, and sworn to by Eyan, a member of the firm, but onty by Pearce.” The Chancellor was asked to strike out the plea because it was “ not signed by Defendant By an;” but he was- not asked to strike it out “because it was not signed by the firm Pearce & Eyan.” It is one thing for the members of a firm to separately sign their individual names, and quite a different thing to sign the firm name. If complainant intended to insist that the plea ought to [677]*677have been signed in the firm name, be should have made bis motion accordingly; and be cannot put the Chancellor in error for not granting a motion that was never made. Neither did complainant ask the Chancellor to strike out the plea because it was not sioorn

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Cite This Page — Counsel Stack

Bluebook (online)
89 Tenn. 668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheatham-v-pearce-ryan-tenn-1891.