Daily's Ex'or v. Warren

80 Va. 512, 1885 Va. LEXIS 89
CourtSupreme Court of Virginia
DecidedJune 11, 1885
StatusPublished
Cited by10 cases

This text of 80 Va. 512 (Daily's Ex'or v. Warren) 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
Daily's Ex'or v. Warren, 80 Va. 512, 1885 Va. LEXIS 89 (Va. 1885).

Opinion

EaüNTLBeoy, J.,

delivered the opinion of the court.

In 1872 a lien creditor’s suit, under the style of Warren v. Lersnear, was instituted to enforce the lien upon the real estate held by Gustavus Lersner in the counties of Loudoun and Fau-quier. An aeecount was ordered in June 1878. The commissioner returned an account of liens, which was confirmed by the circuit court of Loudoun, in October 1874: and the Loudoun lands were ordered, by the court, to be sold. Part of these lands had been sold, when, in the summer of 1876, the defendant, Gustavus Lersner, died; and the cause was revived against his executor and devisees. In October, 1876, a decree was entered for the commissioner to review and revise his account of liens, and to take further account thereof, as well as of all other debts outstanding against the late Gustavus Lersner.

The commissioner returned his report of debts with their priorities, which was confirmed by the court; and, among them, a debt due to Morris Lersner of $8900, with interest from May 2d, 1876, and secured by a deed of trust, recorded in Fauquier county, upon the lands of Gustavus Lersner in that county. The lands were all sold, and the liens transferred to the fund in the cause.

Aaron Daily became an assignee for value, of this lien reported in favor of Morris Lersner to the extent of about $1500, by virtue of various assignments, made from time to time, by [515]*515Morris Lersner during a period running from April 3d, 1877, to May, 1879. In November, 1879, Aaron Daily died; and in April, 1880, his executor (the appellant) hied a petition in the cause of Warren v. Lersner, setting out these various assignments by Morris Lersner to his testator, and asking that all dividends on the Morris Lersner debt, reported in that cause, might be decreed to be paid to him until the said assignments should be fully paid.

To this petition Morris Lersner was not made a party, although his counsel suggested to the court that, he ought to be made a party defendant to the petition; and the court, upon an inquiry and report from a commissioner as to what part of the interest of Morris Lersner in the cause was covered by these assignments, by its decree of October term, 1880, ordered its commissioner of sale to collect the fund belonging to the cause, and, after payment of costs, to pay the residue to the parties to whom the commissioner had reported it to be due— among others, to the executor of Aaron Daily, as assignee of Morris Lersner, the sum of $1387.78.

In September, 1881, before the aforesaid order in favor of Aaron Daily’s executor had been executed, Morris Lersner and Ignatius Lersner filed their joint petition, asking that the commissioner of sale should be enjoined from paying to Daily’s executor the aforesaid sum decreed to him, on the ground that the entire dividend on Morris Lersner’s debt was due to Ignatius Lersner, by virtue of an assignment to him, made on the 15th day of March, 1877, eighteen days prior to the assignment to Aaron Daily; and praying that the aforesaid order of October, 1880, in the pending case of Warren v. Lersner, in favor of said Aaron Daily’s executor, might be reheard, reviewed and corrected; and for general relief. An injunction was awarded by the circuit judge, according to the prayer of the petition. To this petition the defendant, Aaron Daily’s executor, demurred and answered, and contended that Aaron Daily was an assignee for value, and without notice of the previous [516]*516assignment to Ignatius Lersner, and was entitled to preference, because tbe assignment to Ignatius Lersner was made with intent to defraud; and because of the laches of Ignatius Lersner in leaving Morris Lersner in the control and apparent ownership of the fund. An order of reference was made to a master commissioner, who reported January 22d, 1882, that the assignment to Ignatius Lersner, by virtue of its proper date, of March 15th, 1877, was entitled to priority over the subsequent assignments to Aaron Daily. To this report appellant excepted; as, also, to the competency of Morris Lersner’s and other testimony, taken and filed in the cause.

The court overruled the demurrer to the petition, and overruled the exceptions to the commissioner’s report, and to the testimony of Morris Lersner and others; and, by its decree of 23d of January, 1883, confirmed the said report, and ordered the money to be paid to Ignatius Lersner. It also sustained exceptions to certain depositions taken in behalf of appellant; and overruled a motion of appellant for further time to show actual fraud, after the decision of the case by the decree complained of.

This is a competition of assignments, and the only question before this court is the validity and bona fides of the assignment of March 15th, 1877, by Morris Lersner to Ignatius Lersner.

"We are of opinion that the circuit court did not err in allowing the petition of Morris Lersner and Ignatius Lersner to be filed in the cause, September 10th, 1881, and in overruling the demurrer. No final decree was made iu the cause until January, 1883, and in September, 1881, the cause was still pending. By the decrees entered, the rights and questions of subrogation were reserved to any person, and the commissioners of sale were directed to collect and report their proceedings to the court, from time to .time, and, if necessary, to bring suit against the purchasers. And in October, 1881, the .legal title to the lancl sold was brought before the court, and a deed to the purchaser was decreed to be made. Sexton’s ex’ors v. Patterson, &c., Va. [517]*517Law Journal, Feb., 1884, p. 73; Miller’s adm’r v. Cook’s adm’r, 77 Va. (2 Hansbrough) 806; Ryan’s adm’r v. McLeod, 32 Gratt. 377. None of the several assignments made by Morris Lersner of his interest in the cause were absolute, or embraced his whole interest. Barton’s Ch. P. vol. 1, p. 163; Newman v. Chapman, 2 Randolph, 93; James R. K. Co. v. Littlejohn, 18 Gratt. 83. It was believed to be a good asset for its full amount of $3900. Daily’s petition, at April term, 1880, brought in new matter affecting the interests of Morris Lersner, who had never been a party to the cause pending, and who had no notice of the proceedings had therein before the commissioner, by process or otherwise; and he was a necessary party to the petition of his assignee, Ignatius Lersner; and he ought to have been made a party defendant to the petition of Daily, and been summoned to answer the same. The court saw its error in not making Morris Lersner party defendant to Daily’s petition, and awarding process for him to answer it; that he had had no notice of the proceedings before the commissioner in 1880; and that injustice had thus been done both to him and to his assignee Ignatius Lersner. Under the authority of Wooding v. Bradley, 76 Va. (1 Hansbrough) 614; Smith v. Blackwell, 81 Gratt. 300; it was manifestly proper to allow the petition to be filed. The petition of Morris Lersner and Ignatius Lersner was filed in a pending cause to correct error hurtful to théir interest, in proceedings to which they had not been parties, and of which they had no notice. In such cases the court will look at the real essence of the claim and correct injustice. So long as a ease remains, or is retained on the docket, the court may receive exceptions to commissioner’s report, even after its confirmation, if it be clearly shown that, if carried,out, the report will work injustice.

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Bluebook (online)
80 Va. 512, 1885 Va. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dailys-exor-v-warren-va-1885.