Collins v. Campbell

53 A. 837, 97 Me. 23, 1902 Me. LEXIS 2
CourtSupreme Judicial Court of Maine
DecidedNovember 5, 1902
StatusPublished
Cited by8 cases

This text of 53 A. 837 (Collins v. Campbell) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Campbell, 53 A. 837, 97 Me. 23, 1902 Me. LEXIS 2 (Me. 1902).

Opinion

Peabody, J.

The question presented by the report is the right of equitable set-off. It affects the judgments which may be recovered in two suits pending in the Supreme Judicial Court for the County of Hancock.

In one of these suits John E. Collins is plaintiff and Edward T. Campbell is defendant, and in the other Edward T. Campbell and John H. Macomber, as co-partners of the firm of Campbell & Macomber, are plaintiffs and John E. Collins is defendant.

The plaintiffs in the suit Campbell et al. v. Collins, by motion addressed to the court at nisi prius, ask that an order be made directing the judgment which may be recovered in that action to be set off pro tanto against the judgment which may be recovered in the action Collins v. Campbell, except as to the taxable costs in each suit. The pending actions are' based upon judgments recovered in the Common Pleas Division of the Supreme Cóurt of the State of Rhode Island.

The case shows that Collins was indebted to the firm of Campbell & Macomber on a protested draft in 1892, and was sued and arrested in legal proceedings in the State of Rhode Island, instituted by the firm, April 17; 1893, for the collection of their debt. Judgment was recovered against the debtor for $1100.76, which remains unsatisfied. He was released by the court from arrest, and November 16, 1894,. brought suit in Rhode Island for false imprisonment against Campbell individually, who had, in behalf of the firm, caused his arrest, and recovered judgment for $2000, which remains unsatisfied. Collins assigned this judgment, soon after it was recovered, to his mother, Mary E. Collins, to secure his indebtedness to her for [25]*25$2800, borrowed money. He was insolvent at the time of the assignment, and the'instrument seems to have been prepared by his attorney and the formalities of its execution made under his direction. The suit in his name is brought for the benefit of the assignee. Originally courts of equity alone had jurisdiction in cases of set-off“. Ex parte Stephans, 11 Ves. 24. The right did not exist at common law until introduced into its practice by statute; but being found conducive to the administration of justice it has been greatly extended by legislative enactments and a liberal construction by the courts. And now courts of common law have an equitable jurisdiction in cases of set-off independent of the statute, practically coextensive with that of courts of equity, and opposite demands arising upon judgments may, upon motion, be set off against each other whenever such set-off is equitable. Conable v. Bucklin, 2 Aik. 221; Donnell v. P. & O. R. R. Co., 76 Maine, 33; Peirce v. Bent, 69 Maine, 381.

By the exercise of this equitable jurisdiction the courts are enabled to do justice between the parties in cases not strictly within the provisions of the statute. Colb. Prac. 196; 2 Par. Con. 335; Wright v. Cobleigh, 3 Foster, 32; Hutchins v. Riddle, 12 N. H. 464; Gould v. Parlin, 7 Greenl. 82; Simson v. Hart, 14 Johns. 63.

The criterion by which it is to be determined is whether it is equitable. Baker v. Hoag, 59 Am. Dec. 431; 6 How. Prac. R. 201; Makepeace v. Coates, 8 Mass. 451.

Statutes regulating the right of set-off, while seeking to avoid multiplicity of suits and to afford speedy adjustment of conflicting claims between parties, usually limit its application to mutual demands, and if there are several plaintiffs the demands must be from all jointly, and if several defendants, to all jointly. Williams v. Ocean Ins. Co., 2 Met. 303; Colb. Prac. 191; R. S., c. 32, §§ 55, 56, 57.

This case is to be decided independently of any statute, except so far as the spirit of statutory regulations may influence the judicial discretion of the court. 2 Par. Con. 240. In Barker v. Braham, 2 W. Black. 896, DeGray, C. J., favoring the motion of the defendant that the judgments recovered in different courts might be set off against each other, said he “desired it to be remembered that it was [26]*26a case of one judgment against another, and must be distinguished from setting off private debts upon which no judgments had been obtained.” In Mitchell v. Oldfield, 4 T. R. 123, Lord Kenyon said “it did-not depend upon the statute of set-off, but the general jurisdiction of the court over the suitors in it.” Duncan v. Bloomstock, 2 McCord, 318, 13 Am. Dec. 729.

In this case the demands are not such as come within the conditions of the statutes of this state. They are excluded by the limitation of § 57, c. 82, R. S. The proceedings sought'are not for a statutory set-off of the original judgments, but for a set-off of judgments to be recovered in cross actions upon the foreign judgments.

Section 77, c. 81, R. S., giving the right of set-off' in cross actions anticipated equities which in particular cases justify a departure from the general rule, but it applies only where the parties ■ are identical or where several defendants bring cross actions against a non-resident plaintiff, and does not authorize the set-off of a judgment to be recovered in an action of a firm against the judgment which a non-resident plaintiff may recover in his action against one of the partners.

There are ample authorities which hold that in the absence of such statutory authority the courts may allow a set-off of judgments when different parties are nominal plaintiff and nominal defendant. 2 Par. Con. 240; Moody v. Towle, 5 Greenl. 415; Foot v. Ketchum, 15 Vt. 258, 40 Am. Dec. 678; Andrews v. Varrell, 46 N. H. 17.

In Hobbs v. Duff, 23 Cal. 596, it was held “where the parties to two judgments are not the same, courts of equity will look beyond the nominal to the real parties in interest and adjudicate the rights of the parties accordingly.” ' ■ '

Where a firm creditor has been sued by an individual member of the firm, he has been allowed to set off against the claim the "debt of the co-partnership to him. Hutchins v. Riddle, 12 N. H. 464, supra. The reason assigned by the court in that case is, that each member is holden for the debts- of the firm; but there are' reason' and authority also against the right in such cases. Lamb v. Brolaski, 38 Mo. 51. In the case last.cited the court say: -“Were it otherwise, a firm might be made to pay the private debts of one partner [27]*27to the injury of the other and the creditors of the co-partnership.” But it should be considered that in each case the common law court exercises a judicial discretion in granting or refusing the set-off. Simson v. Hart, 14 Johns. 63, supra.

' It is, however, generally held that a member of a firm when sued for his individual debt, can not set off a claim due from the plaintiff to the firm without the consent of the other partners. Taylor v. Bass, 5 Ala. 110; Hoyt v. Murphy, 18 Ala. 316; Manning v. Maroney, 87 Ala. 563, 13 Am. St. Rep. 67; Howe v. Snow, 3 Allen, 111. But it appears tobe otherwise if-he has the consent of his co-partners, and the rights of third persons will not be prejudiced. Tustin v. Cameron, 5 Whar. 379; Montz v. Morris, 89 Penn. 392; Bartlett v. Loomis, 16 Montg.

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Bluebook (online)
53 A. 837, 97 Me. 23, 1902 Me. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-campbell-me-1902.