Dearing v. Bank of Charleston

5 Ga. 497
CourtSupreme Court of Georgia
DecidedNovember 15, 1848
DocketNo. 58
StatusPublished
Cited by37 cases

This text of 5 Ga. 497 (Dearing v. Bank of Charleston) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dearing v. Bank of Charleston, 5 Ga. 497 (Ga. 1848).

Opinion

By the Court.

Nisbet, J.

delivering the opinion.

The bill filed by Bearing against the Augusta Insurance & Banking Company, and the Bank of Charleston, charges that one Samuel H. Peck was the owner of certain shares of the stock of that Company, which was brought to sale under our Statute, making stocks liable to execution — that he (Bearing) became the purchaser, and that the sheriff of Richmond county, in accordance with the requirements of the Statute, issued to him a certificate of purchase — that the same stock had been, previous to his purchase, assigned and transferred by a firm of which said Peck was a member, to the Bank of Charleston, a corporation existing by law in the State of South Carolina, and stood on the books of said Company in the name of A. G. Rose, cashier of said Bank— that said transfer to the Bank of Charleston was without consideration, and that that Bank, by its charter, is prohibited Rom owning stocks — that on presentation of his certificate of purchase, the Augusta Insurance & Banking Co. declined, as required by the Statute, to transfer the stock to him. He asks subpoenas against the Company, and the Bank of Charleston, and prays that the [504]*504stock may be decreed to be transferred to him by the Aug. Ins. & Banking Co. — that the dividends thereon accruing may be paid to him, and that the Bank of Charleston be perpetually enr joiticd from any farther proceedings against the Company in relation to the stock. ■ The Aug. Ins. & Banking Co. was duly served with subpoena, and an order was taken to perfect service on the Bank of Charleston, under- the 2d rule of practice irr Equity, by publication in the Chronicle Sf Sentinel. Publication being made in pursuance of the rule, the Bank of Charleston was made a party, and not appearing, the bill was taken pro confesso, as to that corporation. Upon the hearing, a decree was rendered, that the slock be transferred lo the complainant, 'William Dearing, by the. Aug. Ins. Sf Banking Co. and that the dividends thereon, from, the time hebecame. thepurchaser, be paid to him.

Before this decree was executed, the Bank of Charleston filed a bill, which i:; designated by the pleader, a bill in the. nature of a Bill of Review, setting forth its title to the stock — the facts already stated as charged in Bearing’s bill — that it is a foreign corporation, not subject to the jurisdiction of the Courts of Georgia; that it was wholly without notice of the pendency of Dearing’s suit against it — was not a party thereto, and is not bound by the decree rendered therein, aud praying that Dearing be enjoined irom all farther proceedings under his decree, and that the Aug. ins. & Banking Co. be restrained and enjoined from transferring the stock to him. Dearing answered the bill, and upon the coming in of his answer, solicitors for respondent moved to dissolve the injunction upon two grounds:

1st. Because there is no equity in complainant’s bill, nor anything calling for the interference of the Court by jurisdiction.

2d. Because, if there be equity in the bill, or anything therein to authorize the injunction, the same is denied by the answer.

The presiding Judge refused the motion, and upon that refusal error is assigned; the counsel for Dearing still insisting that there is no equity in the bill filed by the Bank of Charleston, nor anything therein calling for the interference of the Court by injunction, and if there is, the same is denied by the answer.

In thus rapidly sketching the history of this cause, I have said nothing about the hill filed by the Bank of Charleston, in the Circuit Court of the United Slates, nor shall I again refer to it, as 1 consider that it has nothing whatever to do with the questions [505]*505submitted in the record. I dismiss altogether, the question whether the equity of the bill is denied by the answer, because it will be seen that, according to the'view we have taken of this cause, the consideration of that question is unnecessary.

The questions submitted for our revision by this writ of error, are important, inasmuch as they relate to the jurisdiction of our own-Courts — the rights of citizens of, and corporations located in foreign States, and to that comity between independent States, which all civilized people, under different governments, have observed towards each other. They are, howevei, not new. We have the lights of many years to guide us in our pursuit of truth and justice. They seem to us to be well settled by the opinions of learned men, and by the solemn adjudications of Courts of the most commanding authority, both in our own country and in England. It is, therefore, with some confidence in the rectitude of our judgment, that I address myself to the discussion.

I shall inquire—

1st. Whether the Bank of Charleston, being a corporation, existing by virtue of a charter from the State of South Carolina, and located in that State, is concluded by the decree in favor of William Dealing.

2d. If it be not concluded by that decree, then, whether there is anything in its bill, to authorize an injunction to stay the execution of that decree 1

3d. What is the effect of that decree 1

In relation to the first inquiry I remark, that whether the Bank of Charleston is or not concluded by the decree, depends upon the question, whether, in the case made by Dealing’s bill, the Superior Court of Richmond county, had jurisdiction over a foreign corporation 'l If it had, and there was notice to the Bank of Charleston of the pendency of the suit against itself, brought in the Courts of Georgia, it is concluded, and can aver nothing against the decree in that suit rendered.

[l.j We believe that there is no law of force in this State, authorising the making of a citizen of a foreign State a party to a suit in our Courts, so as to conclude such citizen, by a judgment or decree in personam, unless he voluntarily appears and defends.

And that, by the general law, and by the comity of States, the citizen of a foreign State, cannot be made a party to a suit in Georgia, so as to be estopped by a judgment against him, without [506]*506bis consent. And farther, that the Bank of Charleston, whether it had or not, notice of the pendency of the bill brought against it, in the Superior Court of Richmond county, by Dealing, was not a party to the same, and is in no way affected by the decree had in that cause; and that, whatever may be its rights in and to the stock, which is the subject matter of that suit, they remain as perfect as they would.be, if no such decree had been granted, and it may litigate its rights in that subject matter, in the Courts of Georgia, and according to the laws of this State, as against the claim of Dealing, or of any other person, and may, notwithstanding that decree, if by law entitled to the stock, recover from Dealing the dividends thereon, which have been, by the decree, awarded to him.

The rule of Court, the publication, and the order to make the Bank of Charleston a party, and to take the bill as confessed, do not, it is scarcely necessary to remark, make it a party, without authority of law to exercise jurisdiction over it. It is argued that the rule of Court has received the sanction of the Legislature, and therefore, it has the force and effect of law.

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Bluebook (online)
5 Ga. 497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dearing-v-bank-of-charleston-ga-1848.