Downs v. Allen

22 F. 805, 23 Blatchf. 54, 1885 U.S. App. LEXIS 1842
CourtU.S. Circuit Court for the District of Connecticut
DecidedJanuary 5, 1885
StatusPublished
Cited by4 cases

This text of 22 F. 805 (Downs v. Allen) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Downs v. Allen, 22 F. 805, 23 Blatchf. 54, 1885 U.S. App. LEXIS 1842 (circtdct 1885).

Opinion

Shipman, J,

The first two named causes are actions at law upon judgments rendered by the chancery court for the Eighth district, 5 juthern chancery division, of the state of Alabama, in favor of Mary A. Downs; one being against the members of the firm of Hopkins, Allen 6 Co., and the other against John Allen, one of said firm. The third case is a hill in equity, by said Allen, to restrain the defendants from prosecuting said actions at law, upon the ground that said judgments [806]*806were fraudulently obtained and are void. A trial by jury of said actions at law having been duly waived by written stipulation of the parties, said causes were tried by the court, and the following facts were found to have been proved and to be true:

On the first of July, 1855, the firm of Hopkins, Allen & Co., theretofore existing in the-city of Hew York, and composed of Lucius Hopkins, William Allen, John Allen, Walter H. Bulkley, and James McLean, ceased to do business, and existed thereafter only for the purpose of liquidation. Lucius Hopkins and John Allen, in pursuance of the articles of partnership, settled the business of the firm, and used the partnership name for that purpose. Mr. Bulkley died before March 14, 1872. William Allen died on May 25, 1874. Mr. Hopkins died on ¡September 27, 1876. Mr. McLean was not served with process in these actions at law. On September 27, 1855, George Cowles mortgaged to the said Hopkins, Allen & Co. a parcel of land in Montgomery, Alabama, to secure his note to said firm for $4,205.63, dated January 1, 1855, payable, with interest, on January 1, 1856; and on January 22, 1858, mortgaged the same land to James S. Brooks, administrator of E. A. Cowles, to secure a debt to the estate of said Cowles of about $10,000; and afterwards sold said land to William Cowles, who took and retained possession of the same until February 22, 1868. On March 17, 1868, in pursuance of their said mortgage, an'd after the 30 days’ public notice, Hopkins, Allen & Co. sold said land at public auction, at the court-house door in Montgomery, and John Allen, being the highest bidder therefor, became the purchaser for the sum of $5,000. The purchase was made by Mr. Alien in pursuance of legal advice. By an instrument under seal, dated March 17, 1868, and signed “Hopkins, Allen & Co., by Lucius Hopkins,” said firm purported to convey to John Allen their title to said land. About October 6, 1869, J. H. Jjakin went into possession of said premises, under a contract with Mr. Allen, to buy the same for the sum of $7,250. On September 19, 1870, Mr. Allen and his wife duly executed a deed of the premises to said Lakin, which deed was to be held in escrow until he should pay the purchase money. On March 14, 1872, Lakin owed Allen about $1,100 on this contract.
By the law of Alabama a foreclosure sale of mortgaged property to a mortgagee is voidable at the election of the proper party in interest in a reasonable time after the sale. On March 14, 1872, Mary A. Downs, the daughter and sole heir of E. A. Cowles, and who became of age on June 27, 1871, and who was married while she was an infant, brought her bill in equity before the court of chancery in the Southern division of Alabama, praying, among other things, that the sale of said real estate by Hopkins, Allen & Co. to John Allen be set aside, and that they be required to account for the rents and profits of said premises, and for an account of said first-mortgage debt to the time of the said sale, and for a decree for the surplus of the proceeds of sale after satisfying the said mortgage. Hopkins, Allen & Co., the five members of said firm, being named, Lakin, William Cowles, and George Cowles were made defendants. Service was not made upon any of the members of said firm. John Allen employed Stone and Clopton, lawyers in Montgomery, to appear for him, and for Hopkins, Allen & Co., and to answer for them. These lawyers had also appeared for Lakin. After the answers had been filed, Mr. Troy, the attorney for the plaintiff, became satisfied that an administrator should be appointed upon the estate of E. A. Cowles, and should be made a party plaintiff, and so told Mr. Clopton, and asked him, for the purpose of saving delay and expense, to admit that if Hopkins, Allen & Co. were liable to anybody, they were liable to the plaintiff. Mr. Clopton'asked Mr. Troy to elect to affirm the sale to Lakin; Troy replied that he had thus elected; whereupon the following stipulation was signed on or about January 24, 1874:
[807]*807“Mary A. Downs, by next friend, v. Hopkins, Allen & Co. et al. In Chancery, at Montgomery.
“ In this case it is admitted, to save costs and unnecessary litigations, that if the defendants, Hopkins, Allen & Co., or John Allen, are liable to any person on account of the matters alleged in the bill, or any of them, (which liability is not admitted,) that the complainant .Mary A. Downs is entitled to the recovery for such liability, and complainant Mary A. Downs consents to affirm the sale of the mortgaged premises to J. II. Lakin, and waives any right she may have to set aside said sale; and we consent to a reference to the register to ascertain and state the matters of account between the parties.
“Watts & Troy,
“Hor Complainant, and for Wm. and Geo. Cowles.
“Stonjs & Clopton,
“For Hopkins, Allen & Co. and Lakin.”
John Allen had no knowledge of this stipulation. Such proceedings were afterwards had that, upon a finding that the total amount received by Hopkins, Allen & Co. above the mortgage debt, (treating the payments by Lakin to Allen as made to Hopkins, Allen & Co.,) with interest to November 20, 1875, was $1,852.18, a decree against said firm for that amount was entered on November 26, 1875; but the chancellor refused to charge the firm or John Allen with the rents or the rental value of the property while it was in the possession of the latter. Mr. Allen, who was then living in Connecticut, was asked by a Connecticut lawyer to pay this judgment, and refused. Thereupon, on January 3, 1877, the plaintiff appealed from the decree of the chancery court to the supreme court of Alabama. Notice of this appeal was served on January 6, 1877, upon Mr. Clopton; Htone & Olopton having dissolved partnership on March 6, 1876, upon the appointment of Mr. Stone to a judgeship in the supreme court. The statutes of Alabama in regard to appeals provide that they can be taken within two years from the date of the decree, and that service of the citation shall be made upon the appellee or his attorney. The supreme court held- that the rents and profits after the sale must be applied to the reduction of the mortgage debt, reversed the decree of the chancellor, and remanded the cause. There was no argument before the supreme court in behalf of Mr. Allen, or of Hopkins, Allen & Co., and he was not informed of the appeal. Such proceedings were thereupon afterwards had that the net rents of said premises received by M’. Ulen while in possession thereof from March 17, 1868, to October 1, 1869, after deducting taxes, insurance, etc., were found to amount at the latter dai e to $710.23, and with interest to April 25, 1882, to $1,421.21; and it was further found that the $1,852.18 found to be due from Hopkins, Allen & Co. was, with interest from November 20,1875, to April 25, 1882, $2,804.97. The court thereupon decreed as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
22 F. 805, 23 Blatchf. 54, 1885 U.S. App. LEXIS 1842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/downs-v-allen-circtdct-1885.