Craig & Bumgardner v. Hoge & Hutchinson

28 S.E. 317, 95 Va. 275, 1897 Va. LEXIS 36
CourtSupreme Court of Virginia
DecidedNovember 18, 1897
StatusPublished
Cited by26 cases

This text of 28 S.E. 317 (Craig & Bumgardner v. Hoge & Hutchinson) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Craig & Bumgardner v. Hoge & Hutchinson, 28 S.E. 317, 95 Va. 275, 1897 Va. LEXIS 36 (Va. 1897).

Opinion

Riely, J.,

delivered the opinion of the court.

John S. McCortle, on April 28, 1894, conveyed, by deed, to William E. Oraig and J. Lewis Bumgardner, all his real and personal property to secure in four classes his numerous creditors. There were prior liens on parts of the real estate so con[277]*277veyed, some of which, were secured by deeds of trust, and others by the retention of the vendor’s lien.

On May 5, 1894, the said trustees, Craig and Bumgardner, filed their bill in the Circuit Court of Augusta county against the trustees and beneficiaries in the prior deeds of trust, and the holders of the vendor’s liens, for the purpose of having accurately ascertained, under the orders of the court, the liens binding the real estate, and the order of their priority. The bill alleged as an additional reason for invoking the jurisdiction of the court that since the execution of the deed of trust to the complainants large numbers of the debts secured thei'ein had matured, and been paid by the endorsers thereon, so that it was necessary that it should be ascertained by a commissioner of the court to whom the debts were now payable. The bill concluded with the usual prayer for general relief. Process was duly executed on all the defendants, and the Circuit Court hence acquired jurisdiction both of the parties to the suit, and of the trust subject — the matter of the controversy.

William Patrick, trustee in two of the prior deeds of trust, subsequently, to-wit, on June 22, 1894, advertised for sale the part of the real estate so conveyed to him, and thereupon Craig and Bumgardner, the complainants in the suit in the Circuit Court, upon a petition to the judge of that court, obtained, on July 18, 1894, an order restraining the said Patrick from selling, as trustee, the said real estate.

This was the standing of the cause .on October 31, 1894, when Hoge and Hutchinson, creditors of John S. McCorkle, filed their bill in the Hustings Court of Staunton, on behalf of themselves and all other creditors who should come in and contribute to the costs and-expenses of the suit, against Craig and Bumgardner, tiustees, and John S. McCorkle and Mary J. McCorkle, his wife, in which they charged that the debts of Mary J. McCorkle, secured in the first and second classes of the deed of trust to Craig and Bumgardner, were voluntary and fraudulent, and were so secured for the purpose, and with the [278]*278intent, of delaying, hindering, and defrauding the creditors of the grantor, and prayed that they bé pronounced by the court to be null and void, and the complainants be declared to have, by virtue of their suit, a first lien on 'the moneys, which Mary J. McCorkle would have been entitled to receive on account of her debts under the provisions of the deed of trust to Craig and Bumgardner, if her debts had been valid. At the time of the institution of this suit neither Hoge and Hutchinson, nor their counsel, knew of the suit that had been brought by Craig and Bumgardner, trustees, in the Circuit Court of Augusta county.

On Movember 21, 1894, the Hustings Court of the city of Staunton, with full knowledge of the pendency of the suit in the Circuit Court, and against the protest of Craig and Bumgardner, trustees, who were defendants to the suit in the Hustings Court and complainants in the suit in the Circuit Court, entered a decree directing one of its commissioners to inquire and report what was the status of the cause in the Circuit Court; whether any of the claims secured in the first and second classes of the deed of trust executed to Craig and Bumgardner were without valuable consideration or fraudulent; the amounts due to the complainants and to the parties who had filed petitions in the suit, with their respective priorities; what dividends would be applicable under the deed of trust to Craig and Bumgardner to any debts secured in the first and second classes which should be found to be voluntary or fraudulent; and what would be a reasonable and proper fee to be allowed to the plaintiff’s attorney out of any fund that should be recovered in that cause for the plaintiffs and the petitioners.

On the same day, but a few hours later, the Circuit Court, which was then holding its first term since the suit brought in it by Craig and Bumgardner was matured, entered a decree referring the cause to one of its commissioners to take an account of all the real estate conveyed to Craig and Bumgardner, trustees; the liens thereon; the debts secured in the said deed; and [279]*279of the transactions of the trustees, together with any special matter deemed by the commissioner proper, or required by any party in interest to be stated. The court had directed, on a previous day, that such a decree be entered, but it was not prepared by counsel and presented to the court to be entered on the order book until that day.

The Hustings Court, upon the coming in of the report of its commissioner as to the status of the suit in the Circuit Court, enjoined Craig and Bumgardner, trustees, “from collecting in, selling, paying out, or otherwise disposing of any of the property conveyed to them by the trust deed of J. S. UcCorkle until the further order of the court”; and, at its next term, it overruled the exception taken by the trustees at the previous term to the report of the commissioner, and ordered him “to proceed to complete the execution of the order of reference” of Hovember 21, 1894.

The record presents a case of conflict of jurisdiction between two co-ordinate courts of the state, having concurrent jurisdiction; and the question for decision on the appeal here is, whether the Hustings Court had the right to proceed in the suit brought in it by Hoge and Hutchinson after Craig and Bumgardner, trustees, had instituted their suit in the Circuit Court.

In cases of conflict of jurisdiction, it is well settled as the ■general rule that between two courts of concurrent jurisdiction, the court which first acquires cognizance of the controversy, or obtains possession of the property in dispute, is entitled to dispose of it without interference or interruption from the co-ordinate court. Having first acquired jurisdiction, it is entitled to retain it until the end of the litigation, and should proceed to decide all questions which legitimately flow out of •the subject matter of the controversy in the case, and finally dispose of it. Wells on Jurisdiction of Courts, sec. 156; Haden v. Garden, 7 Leigh 157; City of Opelika v. Daniel, 59 Ala. 211; Brooks v. Delaplaine, 1 Md. Ch. Dec. 351; Brown v. Wallace, [280]*2804 G. & J. 479; Carson v. Dunham, 149 Mass. 52; Gay, Hardie & Co. v. Brierfield Coal and Iron Co., 94 Ala. 303; Peck v. Jenness, 7 How. 624; Shelby v. Bacon, 10 How. 56; Freeman v. Howe, 24 How. 450, 461; Smith v. McIver, 9 Wheaton 532; Buck v. Colbath, 3 Wall. 334; Union Trust Co. v. Rockford, R. I. & St. L. R. Co., 6 Bissel 197; Gaylord v. H., W., M. & C. R. Co., Id. 286; and Sharon v. Terry, L. R. A. 572.

The corporation courts of the state have, within their respective limits, the same jurisdiction as the circuit courts; and, therefore, the Circuit Court of Augusta county, and the Hustings Court of the city of Staunton, with respect to the matters in controversy in this cause, had concurrent jurisdiction.

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Bluebook (online)
28 S.E. 317, 95 Va. 275, 1897 Va. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/craig-bumgardner-v-hoge-hutchinson-va-1897.