Harris v. Alcock

10 G. & J. 226
CourtCourt of Appeals of Maryland
DecidedDecember 15, 1838
StatusPublished
Cited by19 cases

This text of 10 G. & J. 226 (Harris v. Alcock) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Alcock, 10 G. & J. 226 (Md. 1838).

Opinion

Dorsey, Judge,

delivered the opinion of the court.

The case of Harris and Chauncey vs. Alcock, and Chapman and Erskine vs. the same defendant, resting for the most part on the same questions of law and fact, and under the opinion of the court sharing the same fate, they will be considered and disposed of together, as if forming but one case, The question which, in its natural order, first presents itself, is, did the property in the merchandise mentioned in the complainants’ bill, as sold to Brady, pass out of the complainants, under the circumstances attending the sale ?

It is insisted that it did not, upon two grounds.

First, because Alcock fraudently aided and assisted Brady in making the purchase, with a view of levying an execution thereon as soon as it should arrive in the city of Baltimore.

Secondly, because Brady, at the time of the purchase, knew himself to be insolvent, concealed this fact from the complainants, and when he obtained the goods, did not intend to pay for them.

Either of these grounds, if established, would have entitled the complainants to relief. But, unfortunately for them, the proof in the record sustains neither of these, their pretensions, no such fraud as that imputed to either Alcock or Brady has been sustained by the testimony, and the right of property in the goods vested upon their sale and delivery.

The next ground upon which the appellants assert their right to relief, is, that the judgment confessed by Brady to Richard E. Alcock, is fraudulent and void, and in support of this assertion, they insist, that if the design of the judgment was as is alledged, to obtain by way of judgment, security for the debts due by Brady to Richard E. Alcock, Samuel Alcock and Co. and Cartlidge, that a separate judgment would have been confessed to each creditor for the amount due to him; and that the omission to pursue that course, is evidence of a fraudulent design.

[247]*247Is the inference warranted by the facts and circumstances under which the judgment before us was rendered, is the question we are to consider ? Richard E. Alcock, we assume, was the authorized agent of Samuel Alcock and Co. and Charles Cartlidge, in obtaining the judgment designed to secure the debts due to himself, and his principals. His design doubtless was, it ought to have been, so to arrange the matter, that each of the three creditors should come in pari passu, in reaping the benefits to be derived from the security about to be taken, for the preservation of their claims. So far from the mode adopted to carry out the design, being any evidence of fraud, it is strong evidence that the agent intended to act with perfect fairness and justice in the transaction ; nay, it is the only mode in which he could have done so, consistently with his duty to himself and his principals. If, as has been suggested, he had obtained a separate judgment for each creditor, that mutuality and perfect equality of benefits, which was in the contemplation of the parties, would in all human probability have been frustrated; a field would have been opened for a race of diligence between three judgment creditors, which would have operated injuriously to Brady, and was never contemplated by him or his creditors to whom the security was to be given. In taking the one judgment instead of the three suggested, Alcock acted in good faith both towards his principals and Brady.; and their other creditors, in this respect, have no right to complain of the course which has been pursued.

It is also contended that, the judgment is fraudulent and void as against the other creditors of Brady, because the note of $20,000, on which it was rendered, was not given for a debt bona fide due from Brady to Alcock, and that this fact being established, the note is thereby impeached for fraud, and it is incompetent to oifer testimony to sustain it by showing that it was given in part for a debt to Alcock, and for the residue on account of debts due by Brady to Charles Cartlidge and to Samuel Alcock and Co. The sole object of the note as is satisfactorily shewn by the proof in the record, was to facili[248]*248tate the entry of the judgment, which Brady had agreed to confess, as a security for the three debts referred to, which debts, by the testimony admitted in the cause, coupled with the confession of the judgment, we think are sufficiently established. The note upon its face, does not in terms say, that it was given for a debt due from Brady to Alcock, but simply promises to pay Richard E. Alcock the sum of $20,000 for value received; as respects its validity it is wholly immaterial whether the note was given for a debt due to Alcock alone, or was given to him as .the authorized agent of Cartlidge and Samuel Alcock and Co. (of which authority we think the record furnishes sufficient proof) for the purpose of obtaining the-judgment rendered to secure the payment of their debts. But it is insisted in behalf of the appellants, that the testimony offered by the appellee, in relation to the judgment and note on which it is founded, is inadmissible, because you cannot offer evidence to add to or contradict a deed, much less can you do so in relation to a record, which is of much greater solemnity; no evidence was adduced to add to or contradict the record. ’ It was not offered to prove that the judgment was not rendered on the promissory note, and thus impeach the verity of the record; but the appellants having offered evidence to contradict the statement in the note, that it was given for value received, and alleging that it was wholly fictitious, without consideration,.and fraudulent; the appellee, in perfect consistency with both note and judgment, offered the evidence on his part, to show that the transaction was bona fide, and not fictitious, without consideration and fraudulent, as was alleged; and to do - this, he offered proof, not contradicting the note, not showing a different consideration from that expressed in it, but showing what in point of fact was the value received, which the note upon its face alleged to have been the consideration for which it was given. There surely on this point is no analogy between the case before us and that of Betts and wife vs. the Union Bank of Maryland, 1 Har. and Gill, 175, and the other like cases which have been cited, where the testimony objected to, was. adduced to [249]*249prove a consideration of an entirely different nature from that expressed in the deed.

It is further urged, that the judgment is fraudulent and void against the other creditors of Brady, because the debts, to secure the payment of which it was given, were not merged in the judgment, nor were releases or receipts given therefor. There is no weight in this objection. The judgment did operate as a merger or extinguishment of the debt due to Richard E. Alcock. After its rendition he could prosecute no suit upon his original cause of action. But as respects the claims of Cartlidge and Samuel Alcock and Co. it was no merger or extinguishment, but a mere collateral security for the payment thereof, and did not impair the rights of those creditors to prosecute any remedy at law, or in equity, which previous to the judgment they might have sustained.

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Bluebook (online)
10 G. & J. 226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-alcock-md-1838.