Courtney v. Pradt

135 F. 818, 1903 U.S. App. LEXIS 5452
CourtU.S. Circuit Court for the District of Kentucky
DecidedJanuary 19, 1903
StatusPublished
Cited by1 cases

This text of 135 F. 818 (Courtney v. Pradt) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Courtney v. Pradt, 135 F. 818, 1903 U.S. App. LEXIS 5452 (circtdky 1903).

Opinion

COCHRAN, District Judge.

This is a suit by a creditor of a partnership, one of whose two members is dead, against his executor and the surviving partner, seeking to obtain payment of his debt. Both defendants are nonresidents of this state, and were so when the suit was brought. The decedent was likewise a nonresident at the time of his death, and the defendant executor was appointed and qualified as such in the state of decedent’s domicile, to wit, the state of Wisconsin. The suit was brought originally in the Powell circuit court, and has been removed to this court by the defendants on the ground of diversity of citizenship. Each defendant was brought before the state court by constructive service of process, and neither entered his appearance to the suit. An attachment was sued out and levied on stock owned by the decedent in a Wisconsin corporation doing business in this state, and an indebtedness on the part of said corporation to him, by serving the writ of attachment upon its agent in this state, designated in accordance with the requirement of section 571, Ky. St. 1903. It was not levied upon any property of the surviving partner, the other defendant. It is therefore a suit to subject the stock in and claim against said foreign corporation to the payment of said indebtedness by means of this attachment.

The defendants move to dismiss the suit because its predecessor, the state court, acquired no jurisdiction, by virtue of the proceed[819]*819ings had therein, of the subject-matter of the suit or the persons of defendants. It is certain that the state court had no jurisdiction so far as William C. Atwater, the surviving partner, was concerned, unless it had jurisdiction of the suit as against the foreign executor of the deceased partner. It is not alleged that William 0. Atwater has any property in this state, and the attachment has not been levied upon any property of his, save so far as he may be interested in the property levied on as the property of the deceased partner. The suit should be treated, therefore, as if it were a suit against the foreign executor alone.

It is claimed by defendants that the state court acquired no jurisdiction of the suit so far as said defendant was concerned, upon two grounds. One is that, by reason of the fact that the garnishee is a foreign corporation, the decedent’s stock in and claim against it is not subject to attachment and subjection to payment of plaintiff’s indebtedness against the partnership in the courts of the state. The case of N. J. Sheep & Wool Co. v. Traders’ Deposit Bank, 104 Ky. 90, 46 S. W. 677, seems to support defendants’ position as to the stock, and the case of Pittsburg, C., C. & St. L. Ry. Co. v. Bartels, 21 Ky. Law Rep. 1670, 56 S. W. 152, seems to be against their position as to decedent’s claim against the foreign corporation. The case is attempted to be distinguished from this case on the ground that the foreign corporation there had property in this state, and had been served with the writ of attachment in accordance with section 203 of the Civil Code, whereas the foreign corporation here has no property in this state, and was served with the writ of attachment in accordance with section 571, Ky. St. 1903. To say the least, I doubt whether either or both of these considerations are sufficient to differentiate that case from this, and there is room for claiming, irrespective of that case, that, if the state court has jurisdiction of a suit against a foreign corporation on behalf of decedent or his estate, it also has jurisdiction of a suit on behalf of a creditor of decedent seeking to subject decedent’s claim against the corporation to payment of his debt, or, in other words, that the fact that the foreign corporation is liable to be sued in this state was sufficient to give its indebtedness a situs in this state for purpose of garnishment in the courts thereof. I do not find it necessary to commit myself further as to this ground upon which it is claimed by defendants the state court had no jurisdiction of this suit.

The other ground is that, because the claim garnished is a decedent’s estate, it was not subject to attachment. I confess that at first I was clearly of the opinion that the position was well taken. The argument of counsel for plaintiff, however, has a tendency to bring me to the conclusion that it is not. It is that the statutory provisions requiring a ratable distribution of a decedent’s estate amongst his creditors do not have the effect of prohibiting a creditor from suing and obtaining an attachment before judgment and execution after judgment by which he will secure a preference. The only way in which such preference can be prevented is by suit [820]*820in equity to' settle the estate, and an injunction against the institution or prosecution of such a suit. As to the correctness of the con tention of plaintiff’s counsel in the particular, I do not find it necessary to commit myself. Likewise as to his contention that without an attachment plaintiff had a right, upon constructive service alone, to subject the foreign corporation’s indebtedness to payment of plaintiff’s claim. It would seem, however, that, if this is so, the foreign corporation should have been made a defendant. And, as bearing on the question, see Judge Bullitt’s note to section 418 of the Civil Code.

The reason why I have not found it necessary to dispose of these contentions of counsel more definitely is that there is one ground upon which it can be claimed, without question, the state court had no jurisdiction of the suit as against the defendant executor, and hence not at all, and that ground is that he is a foreign executor. The law in regard to the right of foreign representatives of decedent’s estate to sue and be sued in other jurisdictions than those in which they were appointed is thus stated by Mr. Justice Story in Vaughan v. Northrup, 15 Pet. 1, 10 L. Ed. 639:

“It has become an established doctrine that an administrator appointed in one state cannot in his official capacity sue for any debts due to his intestate in the courts of another state, and that he is not liable to be sued in that capacity in the courts of the latter by any creditor for any debts due there by his intestate.”

This law has been recognized and applied in this commonwealth. Because of it, it has been held that a foreign personal representative could not sue to recover a debt due the decedent without complying with the terms of sections 3878 and 3879, Ky. St. 1903 (Marrett v. Babb, 91 Ky. 88, 15 S. W. 4), and that a foreign personal representative could not sue at all in this state to recover an asset of the estate which did not constitute a debt due the decedent (Maysville St. R. R. & T. Co. v. Marvin, 59 Fed. 91, 8 C. C. A. 21; L. & N. R. R. Co. v. Brantley, 96 Ky. 297, 28 S. W. 477, 49 Am. St. Rep. 291). That a suit cannot be brought in this state against a foreign personal representative is expressly decided in the case of Baker v. Smith, 3 Mete. 264. It is true that this suit is against him to subject an asset claimed to have a situs in this state. But that can make no difference. The resident creditors of a nonresident decedent have ample provision made for subjecting assets having a situs in the state to the payment of their debts. They can obtain administration on the decedent’s estate in this state, and thereby so subject those assets. And the foreign personal representative cannot sue at all for some, and for those for which he can sue he is required to give bond that will protect local creditors.

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

Related

Mathews Slate Co. v. Mathews
148 F. 490 (D. Massachusetts, 1906)

Cite This Page — Counsel Stack

Bluebook (online)
135 F. 818, 1903 U.S. App. LEXIS 5452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/courtney-v-pradt-circtdky-1903.