Gillis v. . McKay

15 N.C. 172
CourtSupreme Court of North Carolina
DecidedDecember 5, 1833
StatusPublished
Cited by10 cases

This text of 15 N.C. 172 (Gillis v. . McKay) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gillis v. . McKay, 15 N.C. 172 (N.C. 1833).

Opinion

IluFiriN, Chief-Justice.

After stating the case as above, proceeded as follows:

*174 The words of tbe act of 1777 (Rev. c. 115, § 25) are u estate and effects.” But from tlie nature of the jurisdiction of courts of law, they have been understood in a modified sense. In relation to specific property, attachment is analogous to execution; and in respect to dioses, not in possession, it is substantially an action at law by the defendant in attachment, (Peace v. Jones, 3 Murph. 256. Elliott v. Newby, 2 Hawks, 22.) As a general description of the uses of this process, this seems to be a just one; nor do more than two instances occur to me of exceptions.Qne is a debt not duo, which by express enactment may be attached, the other is a debt in. autcr droit, or plainly due to one person for the benefit of another.

Such an interest as a cestui qui trust has under this deed, if a legal one, would certainly be subject to execution ; for the law makes all rights to property in possession, which are known to it, liable to creditors, how-over detrimental to the debtor it may be to have it sold in that state, or however inconvenient to joint owners. It is a question in this case, whether the act of 1812, (Rev. c. 830) brings within the same rule, equitable interests held in conjunction with a great many other persons, entitled to unequal shares, and liable to account with each other, in respect of the property, and the profits? In Brown v. Graves, (4 Hawks, 342, and Harrison v. Battle (1 Dev. Eq. Cas. 537,) it was determined that only a pure and unmixed trust was within the act; a trust, in which, the only duty of the trustee is to secure the estate for the cestui qui trust, and permit him to enjoy it, and convey the legal estate according to his directions. If others have an interest as well as the debt- or (I do not now mean au interest as equitable joint tenants of the whole trust fund, but an equity on the debtor’s particular share,) the act does not operate on the case; because in t]ie cases to -which tli'e act applies, the legal estate is transferred to the trust. The principle is, that the legal estate is not to be transferred or divested out of the trustee, unless that may be done without aftecting any rightful purpose for which that estate was created, or exists, It has been applied heretofore *175 "'to conveyances on trusts to pay debts, with a resulting trust to the grantor. But it seems equally applicable to all other cases, in which the cestui qui trust has not the unqualified right to call for the legal estate, and to call for it immediately. If the nature of the trust requires it to remain in the trustee, who by the terms of the deed, is to do acts from time to time ,• the case is not provided for in the statute; for that would be not only to divest the legal estate, but to change the nature or extent of the equitable right also. As if the trustee is to receive and apply the profits annually to the maintenance of another during life; or if the profits are If) accumulate to a particular period. It would not in those cases be an execution of the trusts, but a breach of them, if the trustee were to Convey the legal estate to the person beneficially interested; and therefore execution sued against that person, cannot be done of the estate out of which the trust arises. A material question is, whether when there is an equitable joint tenancy, or tenancy in common of a trust, that is so pure and un-mixod a trust for each, as to make the share of each liable to execution for his separate debt. Such an interest may be reached in equity, without doubt; and might before the act. However strong the reasons ab inconvenient}, against proceeding at law, may be, they cannot weigh ■ against plain words in a statute. But they may properly be brought in aid of an interpretation of a statute couched in doubtful terms; and still more when the words lead to the belief that the inconveniences were perceived by the Legislature, and that the enactments were made in reference to them. This act says, that execution may be done of all such lands or goods, “as any other person or persons be in any manner seised or possessed in trust for him, her or them, against whom execution shall be sited,as ought tobe done if the said party or parties against whom execution is sued, were seised or possessed of such lands or goods, of such estate as they be seis-ed or possessed of in trust for him, her or them, at the time of the execution sued.” These words do not etn- . brace any case but that of a trust for the defendant or *176 defendants in execution. If the trust be for him or thorn and another, it is not within the letter of the statute. Is the court at liberty to carry it beyond the letter? If creditors were without remedy, we might and probably would'bo bound to do so. At law the estate of a joint-owner may be taken in execution for his separate debt; for the law has no other means of dealing with it.— But equity frequently interposes to prevent the sale of sue!) an interest, although undoubtedly legal, until the rights of all the persons jointly concerned can bo adjusted, either.as to proportions, or by assigning to each his particular share in severalty, so that no person should be disturbed by the execution but the debtor ; and that his interest may be exposed under circumstances to make it bring a fair price, and not deceptive to bidders. The object of the legislature was to give the ereditov a speedy and direct remedy, and save him from the necessity of going’ into a court of equity. But it is-not a fair construction to say, that this was meant to be at the expense of having’ the properly sold at a disadvantage to bidders, or the debtor, or to the injury of 1he joint-owners.^ Nor to say that it was intended to expedite the creditor in those cases in which the debtor, or joint-owners with him, would -be obliged on their part, to seek protection from a court of equity. That would be in one breath, to dispense with the necessity of applying to equity; and in the next, to create the same ’necessity; the difference being only, in the party who-should make the application. Whether it is better that it should be done before a sale„tban after,, and even before the expense of a seisure, and the inconvenience of it to these claiming the joint interest, it is not difficult to .judge. , The act imports too, that in every case within it,''the whole'legal estate should he divested, and not so much of it as would suffice to feed the particular trust for the debtor. A contrary construction might be admissible in relation. to land, were the act confined to that; as that is permanent, a sale disturbs no possession, and partition is readily made, and may he compelled at law. But where then are several ceslui que trusts. *177 sonal chattels, it may be doubted whether it be not to the advantage of even the. creditor, and it certainly is of all the other parties, that a court of equity, whose •powers are competent to clear all incumbrances, and do exact justice between them, shall not alone deal with the interst of any one of the

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Bluebook (online)
15 N.C. 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gillis-v-mckay-nc-1833.