First National Bank v. Johnson

31 S.E.2d 581, 183 Va. 227, 1944 Va. LEXIS 145
CourtSupreme Court of Virginia
DecidedOctober 9, 1944
DocketRecord No. 2844
StatusPublished
Cited by12 cases

This text of 31 S.E.2d 581 (First National Bank v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Johnson, 31 S.E.2d 581, 183 Va. 227, 1944 Va. LEXIS 145 (Va. 1944).

Opinion

Hudgins, J.,

delivered the opinion of the court.'

Under the provisions of Michie’s 1942 Code, sec. 6383a (Acts of 1932, p. 460), the First National Bank of Waynes[231]*231boro filed its bill in equity alleging that R. H. Johnson and Mary C. Johnson, his wife, were indebted to it in the sum of $704.16, less a credit of $22.95, evidenced by a note which became due on July 5, 1941; and that R. H. Johnson had recently been engaged in operating a gasoline filling and service station in Waynesboro, Virginia, but that he had removed, or was about to remove, himself and his effects from the State so that a sufficient amount of his assets to satisfy the claim would not be forthcoming if only the ordinary process of law were used to obtain a judgment. The bill further alleged that R. H. Johnson was the owner of personal property, both tangible and intangible, in the possession of the Standard Oil Company of New Jersey, A. R. Harding. F. W. and B. F. McClung, trading in business as McClung Brothers, Simmons Parts Company, Mary C. Johnson and others. Attachments were issued, duly levied and served upon the parties named as defendants.

The Standard Oil Company of New Jersey answered the bill, alleging that it had sold Johnson certain merchandise for which he was indebted to'it in the sum of $1,106.85; that, prior to the service of the attachment, it had seized and sold the merchandise it had formerly sold to Johnson to one A. R. Harding for the sum of $1,206.14; and that it was entitled to set off the amount of its debt—$1,106.85—against the amount received from the wrongful sale of the merchandise. If- offered to pay the difference—$99.29—into court.

On the issues thus raised, the cause was referred to Commissioner J. H. May, now judge of the Corporation Court of the city of Staunton, who reported that the Standard Oil Company of New Jersey was not entitled to the set-off claimed by it and that it was liable to attaching creditors for the value of the merchandise owned by Johnson that the Standard Oil Company had converted to its own use. From a decree sustaining the Standard Oil Company’s exceptions to the report and holding that the Standard Oil Company was entitled to the set-off claimed, the First National Bank of Waynesboro obtained this appeal.

[232]*232R. H. Johnson leased from the Standard Oil Company of New Jersey, for a period of one year from May 1, 1941, a lot, with improvements and enumerated articles of personal property thereon, located at the comer of Jefferson highway and Commerce avenue in Waynesboro, Virginia, for the purpose of operating a service station’ and selling automobile supplies and .other merchandise. The annual rental was $1,680, payable in advance in equal monthly installments at $140 on the first day of each month. The lease further stipulated that, in the event default should be made in the payment of rent, the lessor should have the right to re-enter the premises.

The monthly rentals for May and June were paid. On July 7, 1941, W. J. Hewlett and R. W. Hawkins, district sales manager and general' salesman, respectively, of the Standard Oil Company, were informed that R. H. Johnson had left Waynesboro for parts unknown. About eight-thirty that night théy called by the service station and found it in charge of and being operated by Merlin Johnson, a brother and employee of R. H. Johnson. On inquiry Merlin Johnson informed them that R. H. Johnson had “told him goodbye,” and said he was leaving. The two agents of the Standard Oil Company called on Mrs. R. H. Johnson and were informed that she did not know where her husband was and understood that he had left for parts' unknown. Merlin Johnson was told to conduct the business as usual, which he did until noon, July 9, when the station was closed by order of the Standard Oil Company. A separate itemized account of sales was kept during this interval. The cash and due bills received were delivered to the agents of the Standard Oil Company with the exception of $22.95, which was applied by Mrs. Johnson on the payment of another debt.

On orders given by Hewlett, all the merchandise and personal property, except that bought from the Standard Oil Company, were removed from the premises either by Mrs. R. H. Johnson or parties from whom the merchandise and other property had been purchased. With the assistance [233]*233of Mrs. R. H. Johnson and Merlin Johnson, the agents of the Standard Oil Company, on July 11, completed an inventory of the merchandise, including gas and oil, on the premises.

In the meantime, Hewlett had been negotiating with A. R. Harding for the lease of the premises and the sale of the merchandise. After Harding had agreed'to lease the premises and purchase the merchandise, but before the contract of lease and sale had been approved by the Richmond office of the Standard Oil Company, and while the parties were still on the premises, a deputy sheriff of Augusta County appeared with process and writs of attachment issued in this cause. Copies were served upon “Mr. Hewlett and Mrs., Johnson, Mr. Simmons and Mr. Harding all at the station.”

All the parties understood that the sheriff levied the attachment on all the tangible personal property then in his view. The officer asked the agent of the Standard Oil Company whether it was necessary for him to stay there and malte a complete inventory, to which Mr. Hawkins replied that he was making a full inventory of the merchandise and would give him a copy of the completed inventory that night or the next day. The officer made the following return on the attachment: . “ * * * also by attaching and levying upon the filling station fixtures, equipment and supplies in the possession of the Standard Oil Company of New Jersey and A. R. Harding, found at the filling station at the intersection of Commerce Ave., and East Main St., in the Basic Section of Waynesboro, Va., itemized statements whereof are hereto attached as a part of this return.”'

On July 12, Hawkins, on the advice of counsel, refused to give the officer a copy of the inventory but said that he would present a copy to the court at the hearing. Copies of this inventory were filed with the commissioner and made a part of the record. The identity of the personal property of R. H. Johnson, on which the officer made the levy, is not questioned.

The substance of Standard Oil Company’s defense is that it had possession of tangible personal property owned by [234]*234Johnson and. had wrongfully transferred this possession to A. R. Harding prior to the levy, and that the only claim Johnson had against it was a right of action for conversion or an action of assumpsit for the value of the goods.

The writ of attachment, like an execution, affects tangible personal property and choses in action. In order for the writ to become' a lien on tangible personal property, a proper levy must be made. This is done in one of two ways—the officer may seize the property when it is in possession of the principal defendant, or even when it is in possession of a third party if in so doing he does not commit a trespass; or he may serve the writ of attachment •on a party in possession named, as co-defendant. In either event, the lien of attachment begins from the time of the levy or the service.

When it is sought to subject a chose in action to the lien of an attachment, service is made upon the principal defendant’s debtor, who must disclose to the court the status of his indebtedness. .

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Bluebook (online)
31 S.E.2d 581, 183 Va. 227, 1944 Va. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-johnson-va-1944.