Dearborn v. Ames

74 Mass. 1
CourtMassachusetts Supreme Judicial Court
DecidedMarch 15, 1857
StatusPublished
Cited by1 cases

This text of 74 Mass. 1 (Dearborn v. Ames) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dearborn v. Ames, 74 Mass. 1 (Mass. 1857).

Opinion

Shaw, C. J.

Two questions arise upon this petition : 1. Whether, by force of the Si. of 1856, c. 284, the jurisdiction previously given by law to commissioners of insolvency, in cases of insolvent corporations, was in terms, or by necessary implication, transferred to and vested in the courts of insolvency thereby established. 2. If it was so transferred, whether that act itself is constitutional and valid, and has the force of law.

1. Upon the first question,' the court are of opinion, that the cases of insolvent corporations, provided for by the statute of 1851, were intended by the statute of 1856 to be vested in the courts of insolvency, thereby established.

The object of the statute of 1856 seems to have been to introduce a system for the administration of this department of the law of debtor and creditors, somewhat more formal and specific, more symmetrical and conformable to the ordinary course of proceedings in courts of justice, than that which previously existed; and all the reasons which would appear to render such a change useful and beneficial in regard to the settlement and distribution of the estates of insolvent individuals, would apply with equal, if not greater, force to insolvent corporations, where large and complicated interests are often involved, and numerous persons, debtors and creditors, deeply interested in the proceedings. But in order to see whether i was included in terms, or by necessary implication, we must look to the act itself, and the state of the law as it then stood

It will be perceived that .this act was passed about five years [10]*10after the act of 1851, embracing corporations in the insolvency system of the state, by which last act the jurisdiction in regard to corporations was vested in the same class of officers, who then had jurisdiction in case of individual insolvents. The modes of commencing proceedings are alike, being in certain cases voluntary on the part of debtors, and commenced by them, and in other cases adverse, and commenced by the creditors. The title of the statute of 1856 is, “ An act in addition to the several acts for the relief of insolvent debtors, and the more equal distribution of their effects.” When one act is intended to be a supplement or appendix to a particular previous act, the practice, we believe, is, to cite the previous act, to which it is intended as an addition, literally by its title ; and this is often designated by marks of quotation. Here is no such citation of title or marks of quotation; but it refers to acts described rather than named, and described by the subject matter to which they relate, to wit, the relief of insolvent debtors and the more equal distribution of their effects.”

In general, the title of an act is not of itself much relied upon in the exposition of the statute itself. But in the present case, the same terms are used, in § 2, conferring jurisdiction on the courts of insolvency, thereby created, and also in the repealing clause. That section declares, that said judges shall have all the jurisdiction, power and authority that commissioners of insolvency now have and exercise, under and by virtue of the several acts to which this is in addition; and all the provisions in said acts contained shall apply in like manner to said judges respectively, as they apply to judges of probate, masters in chancery, and commissioners of insolvency, except so far as said provisions, or any of them, may be by this act modified or repealed.”

In this clause, the words “ the several acts to which this is in addition,” are somewhat equivocal, and if there were any part or clause, showing an intent to limit its operation to the case of insolvent individuals, then the words in question might be so limited. But in the absence of any such limitation, we think it more consonant with the intention of the legislature, not to con[11]*11strae these words to mean merely “ the several acts for the relief of insolvent debtors, and the more equal distribution of their effects.” All the provisions of this act are as well adapted to meet all the requisitions in cases of insolvent corporations, as of living insolvent individuals. The commencement, conduct and close of insolvent proceedings are, we believe, the same in both cases, with this exception, that no discharge is granted to cor porations as in case of individuals. But this is not a difference which would indicate the propriety of any difference of jurisdiction ; on the contrary, if they are within the act, then the same provisions of law, which before applied to judges of probate, masters in chancery, or commissioners, shall apply to the courts of insolvency. The term “ insolvent debtors,” without restraint or qualification, must naturally be understood to include corporations, whether deemed a body politic constituting a person in law, or an aggregate term, embracing the individuals of which it is composed. Why the act of 1851 did not provide for the discharge of the debts of corporations, does not distinctly appear. One reason may be that the very result of insolvent proceedings would be either to pay their debts in full, and so render a discharge unnecessary, or wind up their concerns, and in effect put an end to their existence.

At the time this act was passed, that of 1851 had been in force several years, entitled, An act to secure the equal distribution of the property of insolvent corporations among their creditors.” Many of the provisions of that act are identical with the provisions of the insolvent laws in force when it passed, with particular provisions interspersed, adapted specially to the condition of corporations. Although it is not expressed in the title to be an act for the relief of corporations, perhaps because no discharge was provided for, yet it is well understood that the mere title to an act seldom embraces the whole object of an act, but it is exact enough, if it represents the leading purpose of the act, and is sufficient to identify it. The great and leading pur pose of all the insolvent acts is to effect an equal distribution of the property of insolvent debtors, whether individuals or corporations. The description of the previous acts might uudoubtedlv [12]*12have been more full and exact; and upon the literal interpretation of the statute, the question is not free from doubt. But the question here is, whether, by the terms which they have used, the legislature by fair intendment have included insolvent corporations ; and we think they have. They were manifestly following out a system of policy, begun in 1838, and extended by various subsequent acts, that of securing an equal distribution of estates, when they were insolvent and insufficient to pay all creditors in full; and there is no clause or phrase in this last act, indicating an intention to make any distinction between insolvent individuals and insolvent corporations. The words, in the title of this act, to which the subsequent clauses in the act refer, to wit, “in addition to the several acts for the relief of insolvent debtors, and the more equal distribution of their effects,” are broad enough to embrace all existing statutes on those subjects, if so intended.

The repealing clause, in the forty-first section of the act, does not, perhaps, add much weight to the conclusion we adopt, though wholly consistent with it.

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Bluebook (online)
74 Mass. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dearborn-v-ames-mass-1857.