Church v. Moore

10 Pa. 273, 1849 Pa. LEXIS 216
CourtSupreme Court of Pennsylvania
DecidedApril 26, 1849
StatusPublished
Cited by10 cases

This text of 10 Pa. 273 (Church v. Moore) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church v. Moore, 10 Pa. 273, 1849 Pa. LEXIS 216 (Pa. 1849).

Opinion

Gibson, C. J.

The proofs show that the money for which this bill is filed, was borrowed by Curtis at the instance of the congregation, and for its use;' and that it was laid out by the building committee in the erection of its church. They further show that he mortgaged the property, which he devised to the complainants, as a security for the loan; and, that the congre[278]*278gation, having kept down the interest- while he lived, suffered it to he sold at the end of a few years, for the • principal and unpaid interest, on a judgment obtained on the bond which accompanied the mortgage, and that being inadequate, the property devised to the complainants was sold to satisfy the debt.

It appears, also, that Curtis took, as counter-security, from some of the congregation’s trustees, a mortgage of their individual property, which his executors, or the survivor of them, neglected or refused to put in suit; and one of the questions in the cause is, whether this counter-security was exclusive or cumulative. The .law is, that a creditor may take' as many securities as he can get, the presumption being, in the first instance, that they are cumulative ; and here there is no evidence to rebut it.

Another question is, whether the corporation is bound to perform the promises of the association. "Why not? At the time of the promise, the beneficial interest and dominion was in it as a cestui que trust; and the persons who were its trustees, merely as recipients of the legal title, were bound by its acts. Having become its own trustee by their conveyance to it as-a corporation, it was bound to do whatever they were bound to do; and, having received the title to the whole property, legal as well as beneficial, it had it burthened with the equities which had before been attached to it. That the promise was originally made by a society irresponsible at law, would be an answer to an action at law, but certainly not to a bill in equity, after it had acquired a corporate existence, as a person with capacity to sue and be sued.

The statute of limitations did not begin to run till the property of the complainants had been sold; and, • as the proper period had not elapsed before the filing of the bill, that point of defence also fails.

The rest involves a question of jurisdiction; and a subordinate branch of it is, whether the complainants have a remedy at law.

Had Curtis paid the money in the first instance, he might have maintained indebitatus assumpsit against the congregation, strictly at law, and debt against Nicholas, Weeks, and Scott, on their bond, or on a scire facias on their mortgage: the complainants, who are strangers to them, could have neither, and this is conclusive, that, unless they are restricted by the scantiness of the legislative grant of equity powers to the common-law courts, they are entitled to maintain this bill.

Had they, indeed, paid the money before the land was’ sold, they might have maintained indebitatus assumpsit without privity, just as a [279]*279stranger, who has paid rent to extricate his property from a distress, may maintain it against the tenant. But, it has not been ruled that the action lies for property lost, as an equivalent for money paid. In England, this bill would, consequently, be entertained without hesitation. Here an action would have formerly been maintainable, and would, perhaps, still be; but that is not a consideration to deprive a party of his election. .

The remaining branch of the question depends on the extent of the ■ equitable jurisdiction conferred on the court below by the several statutes on the subject.

The act of 1836 contains no provision explicitly applicable to the subject, but the act of 1840 gives the Supreme Court, and .the Common Pleas of Philadelphia county, the jurisdiction and powers of a court of equity in cases of fraud, accident, mistake, and account; and the act of 1845 gives the same jurisdiction to the same courts, and in the same cases, whether “ the fraud, accident, mistake, or account, be actual or constructive.” The word constructive must be referred particularly to the word fraud; for, it is impossible to conceive that it can be referred, with propriety, to an accident, a mistake, or an account, which is actual where it is anything. What, then, is the fraud charged, and what the relief prayed by this bill ?

The fraud is, in the first place, the defendants’ breach of confidence, in neglecting to redeem the property pledged for their debt, as they were in conscience bound to do; and, in the second, their refusal, for defect of legal remedy, to compensate a loss which every principle of common honesty casts upon them. ' To leave a surety in the lurch, because there is no legal obligation resting on the principal, if not an actual fraud, is certainly, at the very least, a constructive one. I say a legal obligation, or a legal remedy against him ; for the remedy, by the equitable action of assumpsit, which, in such a case, was formerly held to lie with us, and would perhaps still lie, was a clumsy and inefficient one. It was, in truth, a bill in equity in the guise of an action at law, which afforded none of the facilities for the discovery of truth which are afforded by the remedy in a different form; and.that consideration alone would be sufficient to sustain the jurisdiction elsewhere. And even here, I will not say that the present case is not within the true meaning of the act of 1836, which gives specific relief, where a recovery in damages would be an inadequate remedy.” But the jurisdiction stands on a more solid foundation. It is established by the cases cited in the argument, that an extension of remedy at [280]*280law, does not supplant the relief that was to be obtained in equity. Why, then, should this tort between parties who stand in no privity to each other, be turned into a contract ? Certainly not because the courts were at one time compelled by defect of remedy to do so. The equitable jurisdiction conferred by these statutes is a valuable — indeed, an indispensable one; and it ought to be extended by every interpretation of which the words are susceptible. If there is any case in which it is the part of a good judge to amplify his jurisdiction, this is that case. The property of the complainants has been sacrificed to pay the debt of another, which grew out of a transaction to which they are strangers; and they come into a court of equity to claim its assistance in obtaining a clue to the facts and circumstances'of it, as well as a knowledge of their rights. Are they not entitled to it ? True, an execution against an insolvent corporation, on a judgment at law, may be followed by the appointment of a sequestrator, and a bill by him for a discovery of effects; but that is no equivalent for the extraordinary powers of a chancellor, in bringing to light the circumstances of a hidden transaction, on which a party founds his right to recover. These complainants, therefore, were entitled to a discovery in the first instance. It is no objection to this interpretation, ' that the statute which gives equitable jurisdiction of constructive frauds, was enacted after the complainants had filed their bill. The cases cited on the argument show, that the courts do not incline against a retroactive operation, not on the right, but on the remedy; and more especially where they have a discretionary power over the costs.

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Bluebook (online)
10 Pa. 273, 1849 Pa. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/church-v-moore-pa-1849.