Fletcher v. Bennett

36 Vt. 659
CourtSupreme Court of Vermont
DecidedJanuary 15, 1864
StatusPublished
Cited by2 cases

This text of 36 Vt. 659 (Fletcher v. Bennett) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fletcher v. Bennett, 36 Vt. 659 (Vt. 1864).

Opinion

Poland, Ch. J.

The facts of this case as shown by the pleadings, are as follows. The plaintiff commenced his suit against the defendant returnable to the county court, and the same was served by an attachment of the defendant’s property. Subsequently Goodwin and other creditors of the defendant commenced suits against him and attached the same property. After all the attachments, and before the return of the plaintiff’s writ, the defendant confessed a judgment in favor of the plaintiff for the amount of his debt, which was assented to, or accepted by the plaintiff. On discovering that the effect of such confession would be to preclude the plaintiff from following up his attachment under it, and give priority to the subsequent attachments, it was mutually agreed between the plaintiff and the defendant that the judgment by confession should be waived and abandoned, and that the plaintiff should not proceed under it, but might proceed with his suit for his original debt, and that the defendant would not set up said confession as any defence thereto. That the plaintiff did waive and abandon the judgment by confession, according to the agreement, and entered his original suit in court. The subsequent attaching .creditors obtained leave of the court to enter and defend the same, and set up the said .confession of judgment in defence to the action. Under these cirsumstances is such defence available to them? The statute allows subsequent attaching creditors to appear and contest “ the validity of the debt or claim on which the previous attachment is founded.” The object of the statute is evidently to prevent a dishonest debtor from keeping his. property away from his real creditors, by allowing it to be taken on fictitious claims, and thus really preserving it for his own use and benefit.

If in such case, subsequent creditors were not allowed to appear, an'd judgment allowed to pass, the burden would be cast [662]*662on them in any attempt to contest such judgment as fraudulent or fictitious, and it might be wholly without their power to do so. They are therefore allowed to appear and object tó the validity of the debt in the outset, with the burden upon the first creditor to establish his claim or debt.

The language of the statute renders it evident that its purpose was to allow the subsequeht creditor only to contest the debt upon its real, substantial merits, and hence it has been held that he cannot be permitted to avail himself of mere defects in the process, or any- mere matter of abatement of the suitin which respect he does not stand as well as the debtor himself. ' In another view he may set up defences which the debtor could not, by showing that the debt was fraudulent as to other creditors, though it might be good against the debtor himself. Harding v. Harding & Tr., 25 Vt. 487.

But in ordinary cases not coming within either of the special classes of defences above named, the subsequent creditor steps into the shoes of the defendant, and cannot set up a defence that the debtor himself could not, where the defence does not go to the validity or existence of the debt itself.

In the present case no question is made as to the reality and honesty of the plaintiff’s debt. The defence is purely technical, that theform of the debthas been changed by the confession, andmerged in the confession of judgment. The same real debt exists as before, but in form it is not the same debt, declared on, and appears to have arisen since the commencement of the suit. Still technically it is a merger of the original cause of action, and would afford a valid legal defence to the suit by the defendant himself, unless he has precluded himself in some way from setting it up. It may admit of doubt whether this is such a defence as a subsequent attaching creditor could set up, even if the defendant himself was at liberty to do so, but we do not find it necessary now to decide how that may be.

If the debtor has precluded himself from setting it up, then clearly the subsequent creditor should not be allowed to.

It is argued by the plaintiff’s counsel, that the confession of judgment was really annulled and set aside by the agreement of [663]*663the plaintiff and defendant that it should be so ; and that it stands just as if no such judgment had been rendered. But the argument of the other side, that parties cannot by their own mere agreement set aside a judgment we think is unanswerable. They may make an agreement by which the judgment creditor may preclude himself from enforcing it, and if he should attempt to do so, the debtor might have relief by audita querela. And so also may the judgment debtor by agreement preclude himself from using the judgment as a defence to the original cause of action. In the present case the parties having mutually agreed to treat the judgment by confession as a nullity, the plaintiff not to proceed upon or under it, and the defendant not to interpose it as any defence to the original action, we think both are bound, especially after one has acted under, and on the faith of the agreement.

Nor can it be said truly, that such agreement was without consideration at the time. It is well settled that mutual promises may afford a good consideration for both, and so both parties.be bound.

The plaintiff having acted upon it, and entered his suit in court, the defendant is estopped by his agreement from setting up the confession as a defence.

The case of Central Bank v. Curtis, 26 Conn. 533 ; is entirely in point. By the settled course of decisions in that state, if a note upon which a suit is pending be transferred during the pendency of the suit so as to convey the legal title, it defeats the action, even though there be a special agreement that the purchaser may proceed with, and have the benefit of the suit. In the case cited, the plaintiff brought a suit against the defendant on a large number of notes and bills which had been discounted on the defendant’s endorsement, and attached his property. By an arrangement between the plaintiff and defendant, and a third person who was also a creditor o'f the defendant, such third person paid the amount of the defendant’s endorsements to the plaintiff and the 'claims were transferred to him, with a mutual agreement of all parties that the third party was to have the benefit of the plaintiff’s attachment, and be permitted to prosecute [664]*664the suit in the nanie of the plaintiff to final judgment. Subsequently the defendant made an assignment of his property for the benefit of his creditors. The defendant and also the assignee under the assignment, appeared and set up in defence, the sale and transfer of the debts by the plaintiff to such third person.

The court held that, though by the decisions in that state, this was a good answer to the suit, still that the defendant, by his assent to.the agreement that the suit might still he prosecuted to judgment in the plaintiff’s name, had estopped himself from making such defence, and that the assignee who represented the other creditors of the defendant, had no greater right than the defendant himself.

¥e are wholly satisfied with the reasoning upon which that case is founded, and the principle seems fully to cover this case. The subsequent attaching creditors rely on the ease of Barnes v. Lapham, 28 Vt. 307, as sustaining the opposite view.

* In that case' certain persons were summoned as trustees of the defendant.

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Bluebook (online)
36 Vt. 659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fletcher-v-bennett-vt-1864.