Holliday Bros. v. Cohen

34 Ark. 707
CourtSupreme Court of Arkansas
DecidedNovember 15, 1879
StatusPublished
Cited by20 cases

This text of 34 Ark. 707 (Holliday Bros. v. Cohen) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holliday Bros. v. Cohen, 34 Ark. 707 (Ark. 1879).

Opinion

Eakin, J.

Appellants sued Colien upon a bill of exchange, drawn by him, in their favor, upon Richardson & May, of New Orleans, for $1,000, dated at Laconia, Arkansas, January 1, 1876, payable twenty days thereafter. Acceptance was refused, and the same was presented again for payment at maturity; which was refused, also — the said drawees answering, as the complaint says, “that they had no funds of defendant with which to pay the-same.” There is no more direct allegation that there were no funds; nor any allegation of notice to defendants. "With the complaint, they filed an affidavit for an attachment, verifying the debt, and stating that defendant “ is about to remove his property, or a material part thereof, out of this-state, not leaving enough therein to satisfy the plaintiffs, or the claim of said defendant’s creditors; and that, unless an attachment is issued, there is reason to believe that plaintiffs’ claim will be lost, or greatly delayed.” This affidavit was made by George Burns, as their agent. The ordinary bond was given by two sureties.

An attachment issued, and, on the thirteenth of April, 1876, was levied on a store house and goods of defendant, which were left in possession of defendant’s clerk, untouched; with directions not to sell the same, but to proceed as usual with the other duties of his business. On the fifteenth it was levied on ten bales of cotton; and on the-seventeenth, the store-house and goods were released. On the nineteenth, the ten bales of cotton were duly appraised,, and the defendant gave a bond for the performance of the judgment of tbe court, or to produce the cotton or its value.

On the thirteenth of July, 1876, after a motion to discharge the attachment had been overruled, the defendant filed an affidavit, denying the truth of the statement in plaintiffs’ affidavit, to the effect that the defendant was .about to remove his property, or a material part thereof, out •of this state, not leaving enough therein to satisfy the plaintiffs, or the claims of said defendant’s creditors;” and that, “unless an attachment was issued, there was reason to believe that plaintiffs’ debt would be lost, or greatly delayed.’’ ■At the July term, 1877, a jury was impanneled to try this issue, which returned this verdict: “"We, the jury, find for the defendant, and assess his damages at $4,000.” "Whereupon, judgment for that amount was rendered in favor of defendant, against the plaintiffs and their sureties, for the damages sustained by the defendant, by reason of the wrongfully suing out said? attachment, and for costs, “and that he have execution for the same.” Amotion for anew trial was overruled, bill of exceptions taken, and appeal.

It appears, from the bill of exceptions, that the circuit judge acted, in receiving and excluding testimony, upon the view that it was not competent for the plaintiffs to show what debts the defendant owed others; and that he was removing his property so as not to leave 'sufficient to pay his creditors; but the judge held, and so instructed the jury, that, “ in order to sustain the affidavit, the plaintiff's should prove that the defendant was about to remove his property, or a material part thereof, from the state, not leaving sufficient to satisfy plaintiffs’ demand; otherwise, to find for the defendant, and assess his damages at whatever amount the proof shows he sustained.” This was excepted to by plaintiffs, and was all the instruction given.

The affidavit was, substantially, in the terms of the sixth ground of attachment, set forth in the first clause of see. §88, Gantt’s Digest. We can see no meaning in the concluding expression of the sixth ground, to-wit: “ or the claim of said defendant’s creditors,” unless the legislature meant to allow an attachment in favor of one creditor, whenever a debtor might be about to remove his property to such an extent as not to leave enough to satisfy all his creditors. Justice requires this. It would be but a tantalizing i’emedy if each creditor of many, should be obliged to stand by and see the common debtor spirit away his effects until he had reduced the remainder within the value of the largest debt. And it would be, then, very hard upon the minor creditors, if the largest could sue out his attachment, and claim a preference over, the whole of the remaining effects, as soon as their value might be reduced within his debt, but not within that of the minor creditors. The circuit judge err^d in excluding evidence of other debts, and in the instructions given the jury on this point.

The circuit judge, upon trial, admitted on defendant’s part, evidence of his damage from loss of credit, and interference with his prospective business profits. This was error. In the assessment of damages upon an attachment bond, made in the action, there is no issue of malice or want of probable cause. It is simply the truth of the naked fact which is put in issue — not whether the plaintiff acted maliciously or wantonly, without probable cause to believe the fact. In such cases damages must be compensatory merely, and confined to the actual loss from deprivation of the property attached, or injui’y to it; or, in ease of closing business, to the probable profits of the business during the time of its stoppage. Injury to credit and loss of prospective profits thereby, is too remote and speculative. Damage from that cause can not be assessed in an action on the bond, or in the attachment suit. If recoverable at all, it ’ must be in a separate action on the case. The damages were assessed on an erroneous principle, and are, moreover, clearly excessive.

The defendant, on the trial, was his own principal witness. The plaintiff offered, but was not allowed, to impeach his testimony, by proof of his character for truth and veracity in the neighborhood where he had been living until within a few months before the trial. The judge held, as a point of law, that the proof of his reputation should be confined to the neighborhood in which he lived when his testimony was given. It was in the discretion of the judge to admit or refuse such testimony according'as he might think it too remote or fairly proper to assist the jury in judging of the present veracity of the witness. He should have exercised that discretion. It was held in Snow v. Grace, 29 Ark., 131, that such testimony was admissible. In a recent Alabama case (Kelly v. State, 61 Ala., p. 19), it was held that the character of a witness might be impeached by the testimony of one who had, three years before, lived in the same neighborhood with him, and knew his past and present character in that neighborhood, although he knew nothing of it in the neighborhood to which the witness sought to be impeached had removed, and where he then resided. In this case, the interval was comparatively very short, and a sound discretion if exercised would have permitted the impeaching testimony to go to the jury for their consideration.

Eor the errors indicated, the verdict of the jury should, in any view of this case, have.been set aside, and the judgment rendered thereon, arrested. It must now be reversed.

Before remanding the case, it is deemed expedient to indicate the proper practice in this and like cases. This involves a construction of our system of attachment laws, which do not seem sufficiently clear to avoid misapprehension by the courts and the profession.

Before the Civil Code, the action by attachment was a suit of a peculiar character and of statute creation.

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Bluebook (online)
34 Ark. 707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holliday-bros-v-cohen-ark-1879.