Gibson v. McClay

66 N.W. 851, 47 Neb. 900
CourtNebraska Supreme Court
DecidedApril 9, 1896
DocketNo. 6416
StatusPublished

This text of 66 N.W. 851 (Gibson v. McClay) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gibson v. McClay, 66 N.W. 851, 47 Neb. 900 (Neb. 1896).

Opinion

Harrison, J.

On or about July 20, 1890, Alexander S. Porter, one of appellants herein, recovered a judgment in the district court of Douglas county against Ben[902]*902jamin A. Gibson, appellee in the case at bar, Jonathan Chase and Joseph M. Beardsley, in the sum of $15,000. September 25, 1890, appellee paid on the judgment mentioned the sum of $5,055, and at the time of such payment an agreement was entered into which was as follows:

“Received on this judgment from Benjamin A. Gibson the sum of five thousand and fifty-five dollars ($5,055), being a third of the principal sum and interest to date. Also received of Joseph M. Beardsley the sum of five thousand two hundred and sixty-two and 25-100 dollars ($5,262.25), the same being a certified check payable April 28, 1891, the same to be credited on said judgment when said check is paid. The said defendants to pay the costs to the clerk. In consideration of said payment plaintiff agrees to stay, and not issue, any execution on said judgment or file any transcript thereof in any county prior to the first day of February, 1891, at which time it is agreed that the Jonathan M. Chase’s third part of said judgment, the sum of five thousand dollars ($5,000), principal sum and interest to that date, shall be paid, and if the same is not then paid execution may issue for that sum but no more until the 28th day of April, 1891. All parties to said judgment hereby sign and agree to this agreement, and all error and appeal from the aforesaid judgment is hereby waived by both plaintiff and defendants. If execution is issued for Chase’s part of said judgment, it shall first be levied off from his property and next off from the property of Benjamin A. Gibson before Beardsley’s property is levied upon and exhausted, and in case Beardsley’s said check and share shall not be paid and execution is issued, the same shall be made off his property [903]*903“before that of the other defendants is levied upon and sold.”

December 16, 1891, an execution was issued to ■enforce the judgment and directed and forwarded to the sheriff of Cass county where Jonathan Chase resided, which was returned, no property of Jonathan Chase found whereon to levy. Subsequently, of date March 8, 1892, another execution was issued and forwarded to the sheriff of Lancaster county, ordering a levy to be made on the property of Gibson, which order was obeyed and a levy made on some real estate belonging to appellee, and to obtain an injunction restraining the sheriff and defendant Porter from selling appellee’s property until the property of Jonathan Chase should be first resorted to and exhausted, the present action was instituted. It was stated in one portion of the petition filed, that Jonathan Chase was the owner, at that time, of an undivided «one-half interest in a tract of land in Lancaster county, of sufficient value to satisfy the balance remaining of the judgment. A temporary injunction was granted, and after a motion to vacate was heard and overruled, issues were joined .■and as the result of a trial the following findings were made and decree rendered and entered on the journal:

“This cause having been heretofore on a former -day of this term of court, to-wit, March 17, 1893, tried and submitted to the court, now comes on tor final determination and after due consideration and being fully advised in the premises, the court finds in favor of the plaintiff and against the defendants.
“The court further finds that the plaintiff and ■defendant Alexander S. Porter entered into the [904]*904written agreement set forth in the petition herein,, wherein it was agreed by and between the said plaintiff and defendant Alexander S. Porter, in consideration of the payment of one-third of a. certain judgment, interest and costs obtained by the said Alexander S. Porter against the said Benjamin A. Gibson, and one Jonathan Chase and Joseph M. Beardsley, in the district court of Douglas county, Nebraska, that the said defendant Alexander S. Porter was not to cause an execution to be issued against the property of the-plaintiff Benjamin A. Gibson until the property of the said Jonathan Chase was exhausted.
“The court finds that the said Alexander S„ Porter, in violation of said agreement, caused an execution to issue upon the judgment described in the petition herein and a levy was duly made' upon the property of the said plaintiff, without, previously exhausting the property of the said Jonathan Chase, as the said Alexander S. Porter had agreed to do in said agreement.
“The court finds that the said Jonathan Chase was, at the time of the commencement of this, action, and now is, the owner of property in Lancaster county, Nebraska, subject to execution,, and that the said defendants should be, and hereby are, restrained and enjoined from levying; upon the property of the said plaintiff under said judgment until the property of said Jonathan Chase shall have been exhausted.
“It is therefore considered and adjudged by the court that the said defendants be, and they hereby are, enjoined from levying upon the property of the said plaintiff Benjamin A. Gibson, for the' satisfaction of the judgment obtained by the said defendant Alexander S. Porter as above set forth, [905]*905until all of the property of the said Jonathan Chase subject to execution shall have been exhausted, and that the said plaintiffs do have and recover of and from the said defendants the costs of this action taxed at $21.85.”

The agreement herein quoted may fairly be said to evidence a contract, on the part of the judgment creditor, to first collect any balance of the judgment from Jonathan Chase of the debtors, to the extent that the issxiance, levy of execution, and sale thereunder might become necessary in the enforcement of its collection, and we think it not straining the terms of the agreement beyond their fair import to say it contemplated any property belonging to Chase within the jurisdiction of the court, and available by the proceedings mentioned, should be exhausted before recourse should be had to levy of process on property of the other debtors. This being, as we consider, a reasonable construction of the agreement, the issuance of an execution which, by its terms, was directed to be levied on the property of Gibson, as was the one the further effect of which it is herein sought to restrain, and its levy on the belongings of Gibson, and the contemplated sale thereof under the levy, at a time when there' existed property of the debtor Chase within the county wherein the levy was made on that of Gibson, was a violation of the rights of the latter raised by the contract referred to, warranting the equitable remedy of injunction to stay its further progress. The evidence introduced established the fact that Chase was the owner of property in Lancaster county subject to execution, and the trial court made a finding to this effect.

[906]*906It is claimed, however, that appellee, by actions and statements in' relation to the judgment and its enforcement, had estopped himself from insisting on the fulfillment of the agreement. Mr. Gibson wrote some letters to the attorney for the appellant, Alexander S. Porter, in one of which, February 1, 1891, he remitted $3,000 to apply on the balance due on the judgment, and in this he said: “Mr.

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66 N.W. 851, 47 Neb. 900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibson-v-mcclay-neb-1896.