DeLacy v. Hurst, Purnell & Co.

9 S.E. 1052, 83 Ga. 223, 1889 Ga. LEXIS 38
CourtSupreme Court of Georgia
DecidedJuly 22, 1889
StatusPublished
Cited by56 cases

This text of 9 S.E. 1052 (DeLacy v. Hurst, Purnell & Co.) 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
DeLacy v. Hurst, Purnell & Co., 9 S.E. 1052, 83 Ga. 223, 1889 Ga. LEXIS 38 (Ga. 1889).

Opinion

Simmons, Justice.

The bill in this case is made returnable to the August term, 1888, of Meriwether superior, court. It was addressed to the judge of the superior courts of the Coweta circuit, holding and exercising chancery jurisdiction therein. The complainants were Hurst, Purnell & Co. and others, styling themselves creditors of John M. DeLacy and DeLacy & Tallman, The bill was a general creditor’s bill, in which John M. DeLacy, of the county of Mei’iwether, and the firm of Swift & Hamburger, of Muscogee county, were named as parties defendant. It alleged, in substance, that DeLacy was largely engaged in a general merchandise business in Alabama, and at the White Sulphur Springs, Georgia, and in a like business with Tallman at Greenville, Georgia; that in November, 1887, Tallman sold his entire interest in the firm to DeLacy, DeLacy assuming all the liabilities of the firm, and Tallman being then and now insolvent; that DeLacy carried on the last named business in his own name from the time of the sale to the 28th of December, 1887. The complainants set forth the large indebtedness which it was alleged was then due them severally by DeLacy for the goods furnished him at the store in Alabama and at White Sulphur Springs, Georgia, and for goods fur[225]*225nished DeLacy and Tallman at Greenville, Georgia ; and alleged that the goods furnished DeLacy constituted a considerable portion of the three stocks owned by DeLacy and afterwards sold by him to Swift & Hamburger ; that during the summer of 1887, DeLacy and Swift & Hamburger entered into a fraudulent combination against the complainants and other creditors of DeLacy, and in pursuance thereof DeLacy and DeLacy & Tallman executed to Swift & Hamburger at various times mortgages, covering not only real but fictitious and usurious indebtedness, on land and personalty in Georgia and Alabama; that these mortgages were never placed on record, but that just before the expiration of the time allowed for their record, they were taken up and new ones executed in their stead; that this was repeatedly and secretly done up to December, 1887, when there were filed with the clerk for record, two mortgages executed by DeLacy to Swift & Hamburger, one to secure a debt of $34,858, and covering all the stock of goods at Greenville, the other to secure a debt of $6,350, and covering all the stock at White Sulphur Springs; that DeLacy and DeLacy & Tallman also secretly transferred and assigned to Swift & Hamburger all their merchandise, notes,, accounts and choses in action, amounting to $150,000, during the summer of 1887. The complainants alleged, that they, not knowing of these fraudulent transactions, and relying on the representations of DeLacy that he was solvent and his property unincumbered, and that the firm of DeLacy & Tallman was solvent and its property unincumbered, sold the goods which formed the consideration of the indebtedness referred to; that Swift & Hamburger, not willing to rely upon the bona fides of their two mortgages, and the transfer and assignment of the goods, notes, accounts, etc., on the 28th of December, 1887, entered into a fraudulent agreement with DeLacy, by which he was to and did execute and de[226]*226liver to them a deed and bill of sale of all of his property of every description in Alabama and Georgia (said property amounting in the aggregate to $167,750), to pay the nominal sum of $51,000. This deed and bill of sale were alleged to be fraudulent because the consideration was grossly inadequate, and because DeLacy had sufficient property not only to pay the just and legal claim of Swift & Hamburger, but to pay all his other indebtedness besides, and was made to hinder, delay and defraud his creditors. It was alleged that by this sale he became utterly insolvent. It was also charged and alleged that there was a secret reservation in this sale for the benefit of himself; also that the debt of Swift & Hamburger against DeLacy was infected with usury to the extent of $10,000 or other .large sum. The bill prayed for a receiver, injunction, and the setting aside of the conveyance or conveyances above mentioned, the purging of the claim of Swift & Hamburger of usury, -and that their other claims should be decreed as paid to the extent of the value of the Alabama property received by them, before they should receive any of the proceeds of the property in Georgia. The complainants also prayed for a judgment for the amount of thoir claim, and an equitable division of the assets of DeLacy, and for general relief. The trial judge refused to grant the injunction or to appoint a receiver.

At the appearance term of the. case, the. defendants filed several demurrers, and an order was taken to hoar the demurrers in vacation. When the demurrers came on to be heard in vacation, the complainants amended their bill by striking out the address and inserting in lieu of the address, “to the superior court of said county”; also by striking out the word “ orators” wherever it occurred, and inserting the word “ petitioners,” and by striking out the word “subpama” wherever it occurred and inserting the word “ process.” They also amended by charging that by reason of the [227]*227fraudulent agreement entered into by the defendants, and also by the fraudulent conduct of DeLacy in concealing his insolvency from the petitioners, the title to the goods had never passed out of them; and they asked that the money received by the defendants from the sale of said goods stand in lieu of the goods. They alleged that Swift & Hamburger were cognizant of this illegal conduct on the part of DeLacy, and used their influence to make it effective.

The defendants objected to these amendments, on the grounds: (1) that they could not be made at chambers ; (2) that the amendment proposed to change the proceeding from a bill in equity to a proceeding at law ; and (3) that they set out a new and distinct cause of action. Other objections were made which it is unnecessary to mention now. The objections were overruled and the amendments allowed; to which rulings the defendants excepted. The defendants then renewed their demurrer to the bill or petition as amended, on the grounds, substantially, upon which they had originally demurred, and the additional grounds stated above as objections to the amendments. The demurrer was overruled, and the defendants excepted.

1. We do not think that the court erred in allowing the complainants to amend their petition in vacation. An order was taken in term time for the demurrers to be heard in vacation, and whether an order had been taken or not, under section 247 of the code the judge had jurisdiction to hear and determine these demurrers in vacation. The code giving him this jurisdiction, we think it necessarily follows that he would have authority to allow amendments to the bill in order to perfect it and to meet the grounds of demurrer. It would not do to hold that the judge had no authority to allow an amendment to the petition, and that he would be obliged to dismiss the action on account of [228]*228some mere formal defect therein, when by allowing the amendment this defect conld be cured.

2. Nor do we think there is any merit in the contention of counsel for the plaintiffs in error, that the defendant could not change by amendment an old bill in equity into the form of petition prescribed by the uniform procedure act of 1887. If the original hill or petition contains the necessary allegations to give the plaintiffs a cause of action, and it is addressed to the chancellor instead of to the superior court as the act prescribes, and prays for a

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Bluebook (online)
9 S.E. 1052, 83 Ga. 223, 1889 Ga. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delacy-v-hurst-purnell-co-ga-1889.