Curd v. Letcher

26 Ky. 443, 3 J.J. Marsh. 443, 1830 Ky. LEXIS 92
CourtCourt of Appeals of Kentucky
DecidedApril 10, 1830
StatusPublished

This text of 26 Ky. 443 (Curd v. Letcher) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Curd v. Letcher, 26 Ky. 443, 3 J.J. Marsh. 443, 1830 Ky. LEXIS 92 (Ky. Ct. App. 1830).

Opinion

Judge UnDEawooiJ

delivered the opinion of the Court.

Joseph P. Letcher, sold a quantity of merchandize to the firm of' Cronley and Letcher, composed of Edward Cronley and Stephen G. Letch-er; and took their note tor $3000, payable on the 1st of May, 1825,' On the 24(h April, 1825, S. G. Letcher being then absent from the state, Cronley sold the merchandize then on hand, to the firm of J. B. Curd, & co. composed .of-John B. Curd, James S. Hopkins and Benj. H. Perkins, for $2400, payable in four equal instalments,in six, twelve, and twenty-four months, with interest from the 25th of April, 1825, until paid'. On the 4th of June, 1825,- J, P. Letcher filed his bill in chancery against Cronley and Letcher,.and against J. B. Curd, & co. stating in substance,. that S. G. Letcher had- left the state with a drove of horses, had-sold them and squandered the money; and that it was doubtful whether he ever would return; that Cronley and Letcher had no pro-, perty subject to execution; and that he had no means of collecting the debts due him unless he should be permitted to subject the debts due by Curd & co. to Cronley and - Letcher, to the payment of his debt. He prayed tor, and obtained a restraining order upon Curd & co. requiring them not to pay the debts due by them to Cronley and Letcher until the further: order of the court.

S. G. Letcher did not answer. The bill was taken for confessed against him upon publication. Cron-lev, in his answer, admitted the sale’s oí the merchandize, and existence of the debts, but denied his insolvency and the jurisdiction of the court. Curd & co. likewise denied the jurisdiction of the court, but insisted, in case the court should entertain jurisdiction, that they were entitled to various credits, &e. The court settled the different claims set up by Curd & co. admitting some, and rejecting others, and decreed the balance due by Curd & co. to the complainant, Jos. P. Letcher; and gave him the right to sue out execu[444]*444tion for the balance of his debt left unpaid, after crediting the sum decreed against Curd & co. From this ddcree, the defendants in the circuit court have prosecuted a writ of error*

Sf one of joint oblijfors in "ote’ 0,1* ligoe may° proceed in sub'e^tTab ^ sentee's^fto-sesin artimt, ^fr^ddit* 0 118 c Obliffee not secute resí-1'0'" dent, oblizor to insolv' noy, ínto chancery In such case, resident obli-¿¡es.

[444]*444The first question for consideration is, had (he circuit court jurisdiction? We have been referred to the cases of M‘Ferrans vs. Jones, &c. II. Litt. 219; and Ormsby vs Lynch, Litt. Select Cases, 303, as authorities to prove that the court had no jurisdiction. The case of M'Ferran vs. Jones, re-affirms the doctrines advanced in Buford vs. Buford, I. Bibb, 305; in which it is decided that a chose in action cannot bo-subjected, by a chancery proceeding, to the payment of a debt. That this doctrine is in the general true, is readily conceded; but (hat it is universally so is denied. There are several statutory exceptions ;sueh is the proceeding against absent defendants, and their debtors residing within the sla’c, allowed by the provisions of the act of 1796,1. Digest 58;and such likewise, is the proceeding tolerated by the 6th section pf the act of 1821, abolishing imprisonment for debt; I. Digest, 505. This last statute has no operation in the present case; because J. P. Letcher never reduced his chose in action to a judgment, and sued out execution in tt.e manner provided for by the statute, to enl'He him to proceed in chancery. We are, however, of opinion, that his case is embraced by the act of 1796. Stephen G. Letcher, was not within the shRe at the time of filing the bill. . He did not return before the final decree. He was interested in the debt due by Curd & co* It is manifest-that he was not subjected to the operation of a common law tribunal, because of his absence. He could not he reached exceP*- by a proceeding in chancery. His situation, therefore, to our minds presents the very case which must have entered into the contemplation of the legislature when the statute of 1796 was enacted. But it is urged that as Cronley was a resident, it was ^‘ Letcher’s duty to proceed at law against him; and first exhaust the legal remedy, before going info chancery. We think otherwise. There is no part ^,e statute which directs where two or more are jointly bound, and one is absent, that the absentee shall not be proceeded against in chancery, until the [445]*445residents have been prosecuted to insolvency at law. Because, the consequence of taking judgment at law against one, upon a joint demand, where two or more were bound, might have the effect of discharging the others from liability. It would at least lead to embarrassing consequences; to prevent which, a suit in chancery against the absentee, including the residents as necessary parties, will operate as a safe remedy. The statute gives it against the absentee; and we will not clog the operations of the statute, by fabricating conditions which might render the remedy altogether useless. Residents who are jointly bound with the absentee, are proper and necessary parties; and the chancellor who docs not administer justice by halves, may, and ought to bring all that are bound before him; and then do complete justice, although a common law' tribunal might be competent to administer it partially against some of the parties. The absence of S. G. Letcher from the state, in our opinion, gave the court jurisdiction. The case of Orms-by vs. Lynch, has no bearing on the controversy. The question there turned upon the construction of the statutes, giving jurisdiction to the genera] court as embracing controversies “between non-residents, and between non-residents and the citizens of this stale.” The distinction and difference in tne meaning of the terms “absent defendants” as used by the act of 1796;'and “non-residents,” is as striking as that between the meaning of the latter term and “citizens.” A man may be a citizen of Kentucky, and yet a non resident; and he may be a resident, and yet an absent defendant. It is the duty of men who owe debts, to pay them before they leave the state; and to make arrangements for meeting them, if the debts should become due in their absence. If they fail to do so, they may be proceeded against under the act of 1796.

*-)iffcr.enoe'in tha terms ‘absent de-as <• ,gSg and^nonresidents.” p-creditor of “rbrent de-te«ilf>nt’ wish him’eiffñím6 ),¡IVBient of n'U-ntt on J.in7. hands, he must pay the money into court.

[445]*445--

The second question presented by the record, relates to the settlement of the different accounts and claims brought into litigation. Curd & co. contend that they ought not to be made pay interest, while the money due by them was injoined in their hands. We think differently. By tiieir contract, they agreed to pay interest from the date of their purchase, of the goods; and if they did not wish to pay interest after [446]*446the injunction was served upon them, we think they should have paid the money into court. And thus,having delivered it into the custody at thelavi,.they might j^ave exonerated themselves. Having retained the Ose of the money, it is right that they should pay interest upon it.

Cunningham

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Bluebook (online)
26 Ky. 443, 3 J.J. Marsh. 443, 1830 Ky. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curd-v-letcher-kyctapp-1830.