First National Bank of Selma v. Colby

46 Ala. 435
CourtSupreme Court of Alabama
DecidedJune 15, 1871
StatusPublished
Cited by5 cases

This text of 46 Ala. 435 (First National Bank of Selma v. Colby) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank of Selma v. Colby, 46 Ala. 435 (Ala. 1871).

Opinion

PETERS, J.

On the 17th day of April, in the year 1867, the appellee, Oolby, commenced an action at law by attachment against the First National Bank of Selma, for the sum of forty-eight hundred dollars. This attachment was regularly issued from the circuit court of Dallas county, in this State, and regularly executed by a levy on lands belonging to said bank, on the day of its issuance. The [443]*443bill of exceptions taken at the trial shows, that said bank ceased to do business on the 16th day of April, 1867, and had, 6n the 15th day of the same month, refused and failed to pay a draft of the United States for seventy-five thousand dollars.- It further appears, that the president of said bank had absconded on the 17th day of April, 1867, and on that day said corporation’s house of business and its assets were taken possession of by General Swayne, then commanding the Federal forces in this State, under instructions of the secretary of the treasury of the United States, and upon examination the cash account of said bank was found deficient in the sum of about two hundred thousand dollars. It was also shown that said bank was chartered on the 24th day of August, 1865, under authority of an act of the congress of the United States, entitled “ An act to provide a national currency, secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof.” This; act was approved June 3, 1864. After the levy of said attachment, viz: on the 1st day of June, in the year 1867, by decree of the district court of the United States for the middle district of Alabama, “ all the rights, privileges and franchises of said association derived from the act of congress” were “forfeited,” and said association, called the First National bank at Selma, was adjudged to be “ dissolved.” The record of the proceedings in said district court declaring the forfeiture and dissolution of said charter thereof were given in evidence to the jury on said trial. It was likewise shown that Cornelius Cadle, jr., had been regularly appointed receiver for said association as required by law, on the 3d day of June, 1867. The plaintiff also proved by his certificate of deposit the amount of his deposit in said bank to be the sum for which the attachment had been sued out; that is, forty-eight hundred dollars. This was the substance of all the evidence offered on the trial.

On this evidence, said Cadle, as said receiver, moved the court to dissolve said attachment, and also to quash and discharge the levy of the same on the property of said bank. These motions the court refused; and said Cadle, [444]*444as such receiver as aforesaid, excepted to the ruling of the court thereon. And thereupon the court charged the jury, that if they believed the evidence, they must find for the plaintiff “ the amount of the certificate and interest.” This charge was excepted to by said receiver. Cadle, as receiver as aforesaid, then asked the court to charge the converse of this proposition; that is, “if the jury believed all the evidence offered in this cause, they must find for the defendant. This charge the court refused, and the receiver, Oadle, excepted as before. There was a verdict and judgment for the plaintiff for $5,632 33 and costs, and a venditioni exponas was ordered to issue to the sheriff to sell the property levied on.

I have looked into the act of congress under which the “ First National Bank at Selma ” was incorporated, and I have not been able to find any express authority there given which would justify a court of law, in which there was a litigation regularly instituted and pending, to dissolve or dismiss an attachment regularly and properly issued and levied on the property of that association, or to discharge the levy so made. Under the laws of this State, such motions do not affect the merits of the suit. They are, then, not matters of right, but only of discretion in the court. Such discretion is not a matter of error on appeal to this-court.— Gill v. Downs, 26 Ala. Rep. 670; Ex parte Putnam, 20 Ala. 592. Under the provisions of the act of congress, the bank has power to “ make contracts, sue and be sued, complain and defend in any court of law and equity, as fully as natural persons.” — U. S. Stat. at Large 1863-64, p. 99 ; 101, § 8. Then it occupies, so far as these rights are concerned, simply the condition of a citizen. And it is entitled to the same indulgences and rights that a citizen may claim, and no more. If the suit is instituted in a State court, as it clearly may be, (8 Wall. 498,) then the law applicable to the conduct of such suits is applicable to the bank, subject, however, to such modifications as the law of congress may impose.

But the “ national currency act,” under which the bank at Selma was brought into existence, does not interfere, so [445]*445far as I am able to see, in any way with the suit in the State court. Of course, an act of congress made in pursuance of the constitution of the United States, is a part of the supreme law of the land, and a State law must yield to it. — Con. U. S. Art. VI, § 2 ; Ableman v. Booth, 21 How. 517, 520. But as the bank may sue and be sued as a natural person, in this State, it may be- sued by attachment; because it stands in no better condition than a natural person, and a natural person, in this State, may be sued by attachment. — Rev. Code, §§ 2928-30, 2942. The insolvency of the bank does not dissolve the liability to be sued by attachment. The act does not say so. And it is not to be presumed that congress would interfere with a right so important to the citizen of the State without an express declaration to that effect. It is Dot a right to be postponed or defeated by a questionable deduction. If it may be interfered with to any extent, in the end it might be paralyzed and destroyed. — Field v. Close, 15 Mich. Then the conduct of the suit against the bank is to be judged and determined by our own law in reference to attachments. This does not interfere with or settle the effect or right of the lien under the levy of the attachment. That is not a question that can be raised in this •suit in its present shape. No doubt that question is under the control of a jurisdiction where it will be properly determined. Under the law of this State, when an attachment is once properly issued against a corporation, it will not be abated or dismissed because the corporation had, before the issuance of the process, committed an act of insolvency, or because its assets had been placed in the custody of a receiver. The statute of this State governing such suits is as follows : “ If the defendant appear and plead, the cause proceeds as in suits commenced in the ordinary mode. If he make no defense, the plaintiff may at the trial term take judgment final by nil dioit, or default, or execute a writ of inquiry of damages, as may be necessary. — Rev. Code, §§ 3000, 2942. The act of insolvency does not dissolve the liability to be sued, nor the liability to be sued by attachment. The act of congress does not [446]*446so declare, nor is it necessary for the purposes of that statute so to infer it. By the practice of our courts, attachments are only abatable when they have been issued without affidavit or without bond, as required by law. Rev. Code, § 2989; 19 Ala. 32. These being the only causes enumerated, others are excluded by their omission. And the plea in abatement, as all others, must be made by “ the defendant,” and not by a stranger. This is the language of the statute above quoted. — Rev. Code, § 3000 ; Kirkman & Rosser vs. Patton, 19 Ala. 32.

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Bluebook (online)
46 Ala. 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-of-selma-v-colby-ala-1871.