De Galard v. Safe Deposit & Trust Co. of Baltimore

196 F. 981, 1912 U.S. Dist. LEXIS 1612
CourtDistrict Court, D. Maryland
DecidedJune 3, 1912
StatusPublished

This text of 196 F. 981 (De Galard v. Safe Deposit & Trust Co. of Baltimore) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Galard v. Safe Deposit & Trust Co. of Baltimore, 196 F. 981, 1912 U.S. Dist. LEXIS 1612 (D. Md. 1912).

Opinion

ROSE, District Judge.

The defendants have demurred to the bill of complaint. In so far as its allegations are well pleaded, they are upon this hearing to be taken as true. They are in substance as follows:

The complainant is a citizen of the French Republic. The individual defendants are citizens of Maryland. The corporate defendants are corporations of that state. The amount in controversy exceeds $3,000. The complainant is the owner of some $156,000 of debts of the Chicago, St. Paul. Minneapolis & Omaha Railway Company, a Wisconsin corporation, and of $29,000 of debts of the New York Central & Hudson River Railroad Company, a New York corporation. These debts are evidenced by bonds. The bonds are registered in the name of one or the other of the complainant’s infant [982]*982children. These bonds are secured by deeds of trust. By their terms any transfer of title to these bonds shall be invalid and void unless made upon the books of said corporations, respectively, in the city, county, and state of New York.

On or prior to October 28, 1908, the complainant had been appointed by the orphans’ court of Baltimore City guardian for his two children. These evidences of debts were then supposed to belong to them. He was required to give bond as guardian*. The defendant the American Bonding Company of Baltimore agreed to become his surety thereon. The terms of such agreement were set forth in a letter written by the complainant to the defendants Alex-ánder Brown & Sons. This letter was approved by the American Bonding Company. In it the complainant said the bonds had been placed in a box in the vaults of the defendant the Safe Deposit & Trust Company of Baltimore. He promised not to remove the bonds therefrom without the consent of the American Bonding Company. Access to the box was restricted to the last-named company and Alexander. Brown & Sons jointly. It was given for the sole purpose of allowing the latter to remove interest warrants from the bonds during the guardianship and to forward the same to New York for payment. In December, 1909, the Court of Appeals of Maryland, at the suit of the complainant, declared the said guardianship, and certain releases given in connection therewith, null and void. Prince De Bearn v. Winans, 111 Md. 434, 74 Atl. 626.

By such decree the suretyship of the American Bonding Company was extinguished, and with it the sole purpose for which the bonds were placed in the custody of the American Bonding Company and Alexander Brown & Sons. The complainant became entitled to the immediate possession of said evidences of debts. He has urgent need of them. Five suits have been brought against the complainant in the superior court of Baltimore City. The plaintiffs in all those cases are nonresidents of the state of Maryland. The claims upon which they are brought arose outside of that state. On the ground of the complainant’s nonresidence, the plaintiffs in these suits caused writs of attachment to issue out of said court directed to the defendant sheriff. The last named made return upon said writs that he has seized thereunder the particular debts or bonds. The complainant has not been personally served with process in said suits. The American Bonding Company and Alexander Brown & Sons make no claims to the box or personal claim to its contents antagonistic to the complainant. Because of such action upon the part of the sheriff, complainant is unable to secure access to said box or to remove its contents. Complainant makes no personal claim against the American Bonding Company or Alexander Brown & Sons. He 'joins the Safe Deposit & Trust Company as defendant merely to obtain against it a decree which will, protect it as landlord and as controlling physical access to said box against liability in the premises.

As conclusions of law from the facts above stated, the complainant alleges that the proceedings of the defendant sheriff under said writs, purporting under color of the attachment statutes of Mary[983]*983land and of said writs to seize said debts which are owned by the complainant in the state of New York, are illegal.an'd void. He says the said debts are not property in the state of Maryland, and therefore have not and cannot be seized under said writs. Tie charges that the defendant sheriff by his proceedings under the writs of attachment is attempting to interfere with said box and its contents and to incumber complainant’s title to said particular debts, and has sought and is seeking to deprive complainant of his property and of the effective control and use thereof without due process of law, and to deprive the complainant of the equal protection of the laws in violation of the fourteenth amendment. He asserts that the superior court of Baltimore City has no personal jurisdiction over him and has not gained jurisdiction over the box or its contents or over the debts owned by the complainant in the state of New York.

The bill prays that the complainant be decreed to be the true lessee of the box and entitled to access to the same and to withdraw the contents thereof either in person or by his duly authorized representative; that the sheriff be enjoined and restrained from in any manner interfering with the said box and its contents; and that pending this action the sheriff be enjoined so that this court be not hindered in its jurisdiction over this cause; and for other and further relief.

It will be necessary to consider only two of the objections which defendants make to the legal sufficiency of the bill.

[1] They say: First, the plaintiffs in the attachment suits are indispensable parties, and they have not been brought in. Second, before the filing of the bill a state court had assumed jurisdiction of, and was exerting control over, the property which the complainant asks this court to put into his hands. With such jurisdiction and control, this court, it is said, may not lawfully interfere.

Complainant answers, in effect, that the properties upon which the sheriff has attempted to levy are debts due him; that neither he nor the corporate debtors are residents of Maryland or in any wise subject without their consent to the jurisdiction of its courts over their persons; that by the contract between him and his debtors his rights to those debts cannot be transferred from him elsewhere than in the city of New York, a place in which the writs of the Maryland courts will not run. It follows, he argues, that the so-called attachment proceedings are utterly void. The sheriff is a mere; wrongdoer. The complainant is entitled to ignore altogether the persons at whose suit the writs issued, the court by which they were issued, and the writs themselves. The bill itself shows that there are in Maryland certain pieces of paper called bonds which are evidences of the debts due to the complainant. Without possession of these pieces of paper, complainant cannot obtain the beneficial enjoyment in possession of the debts in question, because of certain writs which the state court has issued and caused to be levied by its officer, the defendant sheriff, upon such pieces of paper and to be laid in the hands of the defendants who have either the actual physical custody of such pieces of paper or the right of access thereto. In short, the [984]*984attaching creditors say those pieces of paper are attachable, and that they may by subjecting them to their attachments compel the application of the debts evidenced by such pieces of paper, to the payment of their claims against the complainant. Complainant says they are not attachable.

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Related

Shields v. Barrow
58 U.S. 130 (Supreme Court, 1855)
California v. Southern Pacific Co.
157 U.S. 229 (Supreme Court, 1895)
Prince De Bearn v. Winans
74 A. 626 (Court of Appeals of Maryland, 1909)
De Bearn v. Winans
80 A. 1071 (Court of Appeals of Maryland, 1911)
De Bearn v. Winans
80 A. 730 (Court of Appeals of Maryland, 1911)
De Bearn v. Prince De Bearn
81 A. 223 (Court of Appeals of Maryland, 1911)
Schloendorn v. Schmidt
80 A. 309 (Court of Appeals of Maryland, 1911)
De Bearn v. Prince De Bearn
81 A. 222 (Court of Appeals of Maryland, 1911)
Baltimore, C. & A. Ry. Co. v. Godeffroy
182 F. 525 (Fourth Circuit, 1910)

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Bluebook (online)
196 F. 981, 1912 U.S. Dist. LEXIS 1612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-galard-v-safe-deposit-trust-co-of-baltimore-mdd-1912.