Evans v. Virgin

33 N.W. 569, 69 Wis. 153, 1887 Wisc. LEXIS 163
CourtWisconsin Supreme Court
DecidedJune 1, 1887
StatusPublished
Cited by5 cases

This text of 33 N.W. 569 (Evans v. Virgin) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evans v. Virgin, 33 N.W. 569, 69 Wis. 153, 1887 Wisc. LEXIS 163 (Wis. 1887).

Opinion

Cassoday, J.

This action was brought by Hodges against both members of the firm to enforce the collection of debts due to him from the firm, the larger portion of which accrued prior to October 9,1882. The attachment was issued, upon the several grounds stated, against the property of N. H. Virgin & N. H. Virgin,” which the sheriff was therein “commanded and required to attach and safely keep,” etc. As stated, the sheriff did attach certain personal property belonging to the firm, and also certain real estate, as the property of N. H. Virgin. Upon the traverse of the affidavit and attachment as stated, the same was sustained only on the ground' that October 9, 1882, N. H. Virgin, being a member of the firm, which, was then insolvent, and largely indebted to Hodges upon a credit based almost entirely upon his separate property, conveyed the eighty-five and one-half acres of land to his daughter, Emma, with the intent thereby to hinder, .delay, and defraud his individual creditors, and the creditors of the firm. The facts indicating such intent are stated more in detail in the-findings of fact by the court and referee in the case against Emma V. Laughton (ante, p. 138), decided herewith. Upon the record before us, and which is the same, as to the evidence, in all three cases, we do not feel authorized to disturb the findings of the facts by the court in this case. Davidson v. Hackett, 49 Wis. 186. Upon such facts it is urged by counsel for the defendants that the attachment should have been -wholly dissolved for two reasons, which will be considered in their order.

1. The first is, in effect, that no attachment w.as authorized against the property of the firm upon the-ground that N. H. Virgin, an individual member thereof, had previously conveyed his lands, or a large portion thereof, to his daughter, with the intent, to hinder, delay, and defraud his creditors, including Hodges, who was at the time the principal creditor of the firm. The learned counsel for the plaintiff. [158]*158frankly concedes his inability to find any case where such an attachment upon such property has been sustained upon such a ground; and after very diligent search we are compelled to make the same admission. In Williams v. Muthersbaugh, 29 Kan. 730, cited by counsel for the plaintiff, the attachment was sustained as to the property of the firm, and dissolved only as to the separate property of the non-offending partner. But this question in that case was not squarely raised by the traverse, nor decided by the court, but only incidentally considered. In such a case the interest of the offending partner in the property of the firm may undoubtedly be attached; but where, as here, the firm is insolvent, that question has no practical significance. A careful examination of numerous decisions leads to the conclusion that, unless the statutes otherwise provide, partnership property cannot be seized and held on attachment against the firm for the collection of a partnership debt, except where each member of the firm has committed some one of the several acts which the statutes make a ground for attachment. Under our statutes the affidavit for the attachment must state “ that the defendant named in such writ is indebted to the plaintiff,” etc., and must also contain “ a further statement ” to the effect “ that the defendant has” done, “or is about to” do, one of the several acts prescribed, or “ that the defendant is ” in one of the several conditions stated. Sec. 2731. Although the word “defendant” is used in the singular number throughout the section, yet it “ may extend and be applied to several persons, ... as well as to one person.” Subd. 2, sec. 4971, R. S. So there seems to be nothing in the statute authorizing us to take the case out of the general rule stated, and it must therefore be held to be applicable. As indicated, the affidavit stated a good ground for attachment against the property of the firm, and was therefore a protection to the officer; but, as it was not sustained in that [159]*159regard upon the traverse, it should have been dissolved, so far as the firm property was concerned.

2. The other ground upon which' the learned counsel for the defendants insist upon the attachment being wholly dissolved is, in effect, that, as the attachment was to enforce the collection of a firm indebtedness, and in form against the members and the property of the firm, it could not properly be levied upon the separate property of N. H. Virgin as an individual member of the firm. The statutes provide, in effect, that when two or more persons are indebted on any joint contract, and either of them dies, his estate shall be liable therefor, and the claim may be allowed by the court or commissioners as if the contract had been joint and several. Sec. 3848. But, without such statute, it was recently held in England that the creditor of a partnership firm has concurrent remedies against the estate of a deceased partner and the surviving partner, and that it makes no difference which remedy he pursues first. In re Hodgson (Beckett v. Ramsdale), L. R. 31 Ch. Div. 177.

Upon this theory it has been held that a debt contracted by an insolvent firm is provable in bankruptcy against an individual member of the firm. Curtis v. Woodward, 58 Wis. 504-507. So the statutes provide, iu effect, that where, in an action against several persons jointly indebted upon a contract, the summons is served upon one of them only, the plaintiff may proceed against the defendant served; and, if he recover judgment, it may be entered in form against all the defendants thus jointly indebted, so far only as that it may be enforced against the joint property of all, and the separate property of the defendant served. Subd. 1, sec. 2884, R. S. A judgment in favor of a firm creditor against all the members of the firm, when docketed, becomes a lien upon the separate real estate in the count}7 of each of the partners. R. S. sec. 2902; Meech, v. Allen, 17 N. Y. 303. Under our statutes an attachment is an ancil[160]*160lary or provisional remedy in or "dependent upon the principal action. Sec. 2730, R. S.; Cummings v. Tabor, 61 Wis. 185. Its office is to seize and bold such property as would be liable to execution in the principal action until a judgment can be recovered therein, and an execution issued thereon. Goll v. Hinton, 8 Abb. Pr. 122.

There can be no question but what each member of a copartnership is severally as well as jointly liable for the debts of the firm. Camp v. Grant, 21 Conn. 41; S. C. 54 Am. Dec. 321; Bardwell v. Perry, 19 Vt. 292; Wisham v. Lippincott, 9 N. J. Eq. 353; Cunningham v. Gushee, 73 Me. 420, 421. Thus, in the case last cited, it is said by the court: “ He who owes as a partner is himself just as muck a debtor as though the debt was contracted in his individual capacity. The debt is due personally from each member of the firm. Not infrequently the partnership creditor relies largely upon the ability to pay, and the credit of the individual partners, and there are no partnership funds accessible. That he is the creditor of both the partners surely should not postpone his claim to that of a creditor to whom one of them alone is indebted.” Thus, in Abbot v. Smith, 2 W. Bl. 949, De Grey, C. J., said: “ The contract, when made with partners, is originally a joint contract, but it may be separate as to its effects. Though all are sued jointly, and a joint execution taken out, yet it may be executed against one only.

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Cite This Page — Counsel Stack

Bluebook (online)
33 N.W. 569, 69 Wis. 153, 1887 Wisc. LEXIS 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-virgin-wis-1887.