Collateral Security Bank v. Fowler

42 Md. 393, 1875 Md. LEXIS 24
CourtCourt of Appeals of Maryland
DecidedJune 3, 1875
StatusPublished
Cited by6 cases

This text of 42 Md. 393 (Collateral Security Bank v. Fowler) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collateral Security Bank v. Fowler, 42 Md. 393, 1875 Md. LEXIS 24 (Md. 1875).

Opinion

Bowie, J.,

delivered the opinion of the Court.

The question presented by the present appeal is, whether an assignee in bankruptcy, can intervene by supplemental bill, in a cause, previously begun by a conventional trustee, in the Circuit Court of Baltimore City, to recover certain certificates of stock belonging to the debtor, and who was declared a bankrupt pending the suit, or the assignee must file an original bill, in the nature of a supplemental bill, to effect this object.

The leading facts developed by the record are as follows:

On the 11th of September, 1873, the late Robert Eowler, as assignee of Denson & Quincy of that city, filed in the Circuit Court of Baltimore, his bill of complaint, alleging that his assignors, being partners, as such, and as individuals, conveyed all their assets to the complainant, by a certain deed of trust, for the purposes therein mentioned.

That Denson held in his own right, two certificates of stock, in “ThePeople’s Gas Company,” viz: one for fifty shares, numbered 2242, and another for fifty shares, numbered 2^46, which (as the complainant charged,) had come to the possession of Benjamin E. Ullman, President of “The Collateral Security Bank,” purporting to be assigned by Denson, but not in fact so assigned, or authorized by him to be assigned, and were presented by Ullman, “to The People’s Gas Company,” for cancellation, and renewal; and being so cancelled, two other certificates, of fifty shares each, were delivered by the People’s Gas Company to the said Ullman, as President as afore[395]*395said in lieu of the original certificates, and he still holds the same. It was further alleged, the original certificates were delivered to the bank by Quincy, without the authority or signature of Denson, or his assent, or ratification, and without consideration.

The bill further charged that the new certificates were void, and ought to be delivered up for cancellation, and others issued to the complainant, or in the name of “Isaac M. Denson,” as of the original dates.

“The Gas Company,” “ The Collateral Security Bank ” and “Isaac M. Denson,” were made defendants, and the prayer for relief was, that the certificates issued to Ullman, as President, might be cancelled, and others issued to the complainant, or Denson, for the use of the complainant, and for other and further relief. “ The People’s Gas Company” and “ The Collateral Security Bank,” filed answers denying the material allegations of the bill. Denson answered, admitting them and consenting to the decree, as prayed.

This case was afterwards by order of the complainant’s solicitors, entered to the use of Isaac S. George, assignee of Denson & Quincy, and the cause being so entitled, on the 9th of May, 1814, there was filed in the Court, a paper entitled:

“ The supplemental bill of Isaac S. George, assignee in bankruptcy of Isaac M. Denson, and also of Denson & Quincy, to whose use was entered the suit of Robert Eowler, trustee of Denson & Quincy against the said defendants now pending in said Court.”

Annexed to this was an application in writing, for leave to file the same, and for an order requiring the defendants to answer, whereupon, the Court passed an order granting the leave and commanding the defendants to answer by a day certain.

This bill recapitulates the proceedings previously had under the original bill, recites substantially its allegations ; [396]*396the answers of the several defendants, are referred to, and made a part of the bill; and by way of supplement, it is alleged that since the filing of the original hill, Messrs. Denson & Quincy, were duly declared bankrupts, and the complainant appointed assignee of the firm, and of each of its members, and by virtue of an assignment, executed in pursuance of the Bankrupt Act, the property of the firm, as well as that of its several members, as individuals, was transferred to the complainant, assignee in bankruptcy.

Therefore it was proper the suit should he prosecuted in the name of the complainant and accordingly the same had been assigned to his use.

It further alleged, that Robert Eowler, had since departed this life intestate, and Messrs. John H. and David Fowler, were appointed his administrators, and praying process against them and the former defendants, prayed for the same relief as prayed for in the original hill, and such other and further relief as the Court might think he was in equity entitled to. '

The Collateral Security Bank appeared by counsel, and demurred generally, concluding with the usual prayer, craving judgment whether they are compelled to answer.

The case being submitted on demurrer, the same was overruled, whence this appeal.

The appellant assigns no cause of exception to any particular allegation or averment of the hill, hut relies solely on the objection that the cause cannot he continued by the complainant by a supplemental hill, hut should have been renewed by an “original bill in the nature of a supplemental bill,’’ there being no privity of title between the complainant in the original hill and the present complainant, the appellee.

The objection, if judged by the difference in the terms, would seem to he more nominal than real, but the rights of the parties in the two modes of proceeding being essentially different, the question involved is of much practical importance.

[397]*397The distinction, (says Daniel,) may at first sight appear artificial, but it is attended by a considerable difference in its practical results ; for in those cases in which a supplemental hill only is filed, if there has been no decree, the suit may proceed after the supplemental hill has been filed, in the same manner as if the original plaintiff had continued such, except that the defendants must answer the supplemental hill, and either admit or put in issue the title of the new plaintiff; but in the case of an original hill in the nature of a supplemental hill, the whole case is open; £a new defence may.be made, the pleadings and depositions cannot be made use of in the same manner as if filed or taken in the same cause, and the decree, if any has been obtained, is no otherwise of advantage than as it may be an inducement to the Court to make a similar decree.’” 3 Danl. Ch. Prac., 1666, 1667.

In the case of a supplemental suit, the benefit of the original decree is given the new plaintiff, and he is entitled to stand in the place of the original plaintiff, and have the benefit of the proceedings on the original hill.

The same learned author says : Notwithstanding this essential difference between the modes of proceeding and effect of a supplemental bill’ and ‘ an original bill in the nature of a supplemental hill,’ there does not seem to he any general rule deducible from the authority determining the cases in which the transmission of interest of the sole plaintiff renders the one or the other form of proceeding applicable.” Ibid., 1667.

The rule, which seems according to the decisions sometimes almost arbitrary, varies according to different writers.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Brann v. Mahoney
48 A.2d 605 (Court of Appeals of Maryland, 1946)
Wlodarek v. Wlodarek
175 A. 455 (Court of Appeals of Maryland, 1934)
Darcey v. Bayne
66 A. 434 (Court of Appeals of Maryland, 1907)
Schwab v. Schwab
52 L.R.A. 414 (Court of Appeals of Maryland, 1901)
Chappell v. Funk
57 Md. 465 (Court of Appeals of Maryland, 1882)

Cite This Page — Counsel Stack

Bluebook (online)
42 Md. 393, 1875 Md. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collateral-security-bank-v-fowler-md-1875.