H. B. Claflin Co. v. Simon

55 P. 376, 18 Utah 153, 1898 Utah LEXIS 109
CourtUtah Supreme Court
DecidedOctober 22, 1898
StatusPublished

This text of 55 P. 376 (H. B. Claflin Co. v. Simon) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. B. Claflin Co. v. Simon, 55 P. 376, 18 Utah 153, 1898 Utah LEXIS 109 (Utah 1898).

Opinion

MINER, J.

This action was brought to recover upon ten separate and distinct causes of action set forth in the complaint. The first four causes of action are based upon promissory notes due at the time the cause of action was commenced; the five following causes of action are based upon notes not due at the time the action was begun, and the last cause of action was for goods sold and delivered for an agreed amount, part of which was due and part not due when the action was commenced. Each of the causes of [157]*157action based upon a note or demand not yet due alleges: “This action is commenced and maintained in aid of attachment under and pursuant to the provisions of subdivision 5 of section 3308, of the compiled laws of Utah, and that said defendants have assigned some of their property with intent to defraud their creditors, also that said defendants fraudulently contracted the debt and incurred the obligation respecting which this action is brought.” Neither of the other eauses of action contain any allegations of fraud. At the time of the filing of the complaint plaintiff also filed an affidavit for attachment which alleged the grounds to be that the defendants had assigned and disposed of their property with intent to defraud their creditors. The defendants demurred separately to each cause of action, on the ground that the same did not state facts sufficient to constitute a cause of action. The demurrer was sustained. The plaintiff refused, upon being given permission, to amend. The complaint was dismissed and judgment rendered in favor of the defendants. From this judgment this appeal is taken.

It is contended that the complaint does not set forth the facts constituting the fraud named as the basis of the action when the attachment proceedings were commenced under Sec. 3308, C. L. U. 1888. Where the debt is not due the allegations necessary to make in the affidavit for attachment with reference to the fraud must also be included in the complaint, with the addition that the facts constituting the fraud must be specifically stated and embraced in the complaint in order to constitute it a proper pleading. It is not sufficient to charge fraud in general terms. The nature of the fraud must be set out.

In the case of Selz, Schwab & Co. v. Tucker, 10 Utah, 132, where a similar question was before this court, it was said:

[158]*158“Fraud is .the foundation of this suit, and therefore the facts upon which the plaintiff relied, as constituting fraud, should have been specifically alleged. Because such facts were set up in the affidavit for attachment is no reason why they should not be set up in the coniplaint. Under the code, civil actions are commenced by the filing of a complaint, and, unless a cause of action is stated, the defendant need not answer, but, after summons, may demur. At the time of issuing the summons, or at any time thereafter, attachment proceedings may be instituted, provided a statutory cause therefor exists. Such proceedings, however, must be preceded by the filing of a complaint. If, then, the complaint fails to state the facts which entitle the action to be prematurely brought, it cannot be sustained on demurrer. Such facts must be alleged the same as though no attachment had issued, so as to enable the defendant to put them in issue by denial.”

In the case of Wilson v. Sullivan, 53 Pac. Rep. 995, 17 Utah-, this court held:

“Fraud, when relied upon as a defense, must be specifically pleaded in an answer as well as in a complaint, and the-facts and circumstances relied upon should be set out in order that the court may know whether there was such fraud as will be of avail to the pleader, and also that the party charged with fraud may know the nature of the charge and be prepared to meet it. The allegation referred to amounts to a legal conclusion as constituting fraud, and presents no issue of fact as it does not set forth the specific fact which constituted the alleged fraud.”

The grounds for attachment as stated in the affidavit are not contained in the complaint. This is a defect that cannot be safely overlooked. The mere statement in the complaint of the statutory ground for attachment does not comply with the rules of pleading laid down by this [159]*159and other courts on this subject. The statement of a conclusion presents no issuable fact sufficient upon which the defendants can base an answer or denial. The facts constituting the fraud, relied upon, should have been set out and specifically plead, so that the court may know whether there was fraud such as would avail the pleader, and also that the defendants may know the nature of the charge and be prepared to meet it. The basis and foundation of this action is fraud. Fraud in disposing of property, with intent to defraud creditors, and fraud in fraudulently contracting the debt respecting which the action is brought.

These grounds for attachment emanate from the statute. At the time of issuing the summons, or at any time thereafter, attachment proceedings may be instituted if a statutory cause therefor exists. The allegations of fraud required in the affidavit for attachment are also, although in a more specific form, necessary to the complaint, and they continue to be necessary allegations through every stage of the proceeding. These allegations of fraud, where an action is based or is dependent upon attachment proceedings under the statute, must be specifically set forth in the complaint the same as in any other complaint where fraud is alleged and becomes a necessary element in the proceeding. When alleged they must be proved like any other fact to authorize the judgment, and unless they were true at the time of the commencement of the action, there was no jurisdiction for a premature suit, and the proceeding must fail. By proceeding under the statute, the complaining party obtains a lien upon the property of the debtor and holds it for the satisfaction of the judgment. Ele is not required to await the procurement of the judgment before his lien attaches, as would be the case if he commenced his action without availing himself of the provisions of the statute against the fraudulent acts [160]*160of bis debtor. By reason of the fraudulent acts of bis debtor he is permitted to act prematurely. He must therefore allege in bis complaint the specific acts of fraud complained of, and state in what such fraud consists. To simply aver that the defendant has assigned a portion of his property with intent to defraud his creditors, or that he fraudulently contracted the debt are not statements of facts. The assignments may have been for value received in a legitimate transaction for the actual benefit of the creditors. Besides it may be the highest duty of an insolvent to sell his property in order to pay his debts. The intent with which he sells it is only a matter of inference. If the facts upon which the inference is based are stated, the court can judge of their sufficiency. The facts and circumstances .must be set out and shown which will reasonably sustain the theory of the charge.

On page 193, Maxwell on Code Pleading, the author says:

“An allegation of fraud without a statement of the facts constituting the fraud is not sufficient. The reason is, fraud is a conclusion of law, and it is insufficient to allege that an act was affected by fraud, as that a deed was obtained by fraud, unless the things done constituting such fraud are stated on the face of the pleading. This is a very old rule, and the current of authority sustaining it is almost unbroken.

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Cite This Page — Counsel Stack

Bluebook (online)
55 P. 376, 18 Utah 153, 1898 Utah LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-b-claflin-co-v-simon-utah-1898.