Holton v. Davis

108 F. 138, 1901 U.S. App. LEXIS 3757
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 25, 1901
DocketNo. 024
StatusPublished
Cited by6 cases

This text of 108 F. 138 (Holton v. Davis) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holton v. Davis, 108 F. 138, 1901 U.S. App. LEXIS 3757 (9th Cir. 1901).

Opinion

HAWLEY, District Judge,

after making the foregoing statement of facts, delivered the opinion of the court.

. This suit was instituted by Mrs. Harriet Wood, a sister of Judge Davis, deceased, against Andrew J. Davis, Jr., the First National Bank of Butte, Mont., James A. Talbott, formerly special administrator of the estate of Andrew J. Davis, deceased, John H. Leyson, as administrator with the will annexed of Andrew J. Davis, deceased, and John E. Davis, as administrator of the estate of John A. Davis, deceased, to enjoin the defendant Andrew J. Davis, Jr. (who will be hereinafter designated as “Andy”), from availing himself of a judgment obtained by him in the district court of Silver Bow county, state of Montana, and affirmed in the supreme court of that state, which declared and adjudicated that Andy was entitled to 950 shares of the capital stock of the bank. The theory upon which the suit was brought and tried is that the judgment obtained by Andy in the state court was procured by fraud, conspiracy, and collusion, and that Andy should not, in equity, be allowed to avail himself of or to derive any benefits therefrom. The history concerning the prior litigation, and the essential facts in relation thereto, and the specific allegations in the bill of complaint as to the alleged frauds, conspiracy, collusion, and wrongdoing of the parties defendant herein, and of all the counsel for the respective parties, are sét [149]*149forth at great length in the general statement we have made, and to which we wall have frequent occasion to refer. The case is in many respects peculiar in its character. It is doubtful, to say the least, if any parallel case could be found in the books where so many wholesale charges of corruption, fraud, and conspiracy can be found.' To read these charges, independent of the proofs, the mind would be led to believe that all the proceedings in the state court relative to the bank stock were conceived in sin and brought forth in iniquity by Andy and his co-conspirators. Although all the charges are made on information and belief, they are couched in language direct, positive, and clear, and, if proven as charged, would necessarily demand and receive from this court the severest condemnation that language affords to all parties concerned therein, irrespective of their standing and position in the community where they reside, and the relief asked for should he granted without any hesitation.

At the threshold of any discussion herein it becomes necessary to determine the scope of our power and the extent of our duty in the premises, and to ascertain whether or not there is any limit in equity to' the inquiries we are herein called upon to make. It is admitted by appellant that this court cannot, in this suit, review or set aside the judgment obtained in the state court. As against the parties in that suit the judgment rendered in the state court is final. But if it be trae that it was procured by fraud, of which the complainant had no knowledge, and, but for sucb fraud, it would not have been obtained, then it would be against equity and good conscience to allow the party who had won his case by fraud, collusion, perjury, or • conspiracy to reap any advantage or benefit by such fraudulent acts. Any judgment thus rendered upon a false, fraudulent, and fictitious record does not possess any verity in the law, and can always be assailed in an independent suit brought by any party interested who is not a party to the action, and did not participate in the fraud, or have any knowledge of it until after the judgment was obtained and became final. The general rale upon this subject is well expressed in Marshall v. Holmes, 141 U. S. 589, 596, 12 Sup. Ct. 62, 64, 35 L. Ed. 870, 873, as follows:

“While, as a general role, a defense cannot he set up in equity which has been fully and fairly tried at law, and although, in view of the large powers now exercised by courts of law over their judgments, a court of the United States, sitting in equity, will not assume to control such judgments for the purpose simply of giving a'new trial, it is the settled doctrine that ‘any fact which clearly proves it to he against conscience to execute a judgment, and of which the injured party could not have availed himself in a court of law,, or of which he might have availed himself at law, hut was prevented by frau'd or accident, unmixed with any fault or negligence in himself or his agents, will justify an application to a court of chancery.’ Insurance Co. v. Hodgson, 7 Cranch, 332, 336, 3 L. Ed. 362; Hendrickson v. Hinckley, 17 How. 443, 445, 15 L. Ed. 123; Crim v. Handley, 94 U. S. 652, 653, 24 L. Ed. 216; Metcalf v. Williams, 104 U. S. 93, 96, 26 L. Ed. 665; Embry v. Palmer, 107 U. S. 3, 11, 2 Sup. Ct. 25, 27 L. Ed. 346; Knox Co. v. Harshman, 133 U. S. 352, 154, 10 Snp. Ct. 257. 33 L. Ed. 586; 2 Story, Eq. Jur. §§ 887, 1574; Floyd v. Javne, 6 Johns. Ch. 479, 482. See, also, U. S. v. Throckmorton, 98 U. S. 61, 65, 25 L. Ed. 93.”

To the same effect, North Chicago Rolling-Mill Co. v. St. Louis Ore & Steel Co., 152 U. S. 596, 615, 14 Sup. Ct. 710, 38 L. Ed. 565.

[150]*150In 2 Story, Eq. Jur. § 1574, the learned author says:

“The new trial is never granted in terms. There can be, in no such case, anything like another trial in the court of law. The case is effectually ended there. But where there was a distinct and decided fraud in the proceedings by which the judgment at law was obtained, — as by putting in testimony Xvhieh the party believed to be false; by giving no notice of the suit, or one calculated to mislead the defendant, and thus deprive him of an opportunity to be heard in the trial at law; or, in any similar mode, making the trial at law fictitious or fallacious; and also where the defendant at law, through accident or mistake, and without default in the proper degree of watchfulness and care required of careful men in their own concerns of equal importance, fails to present his defense fully, — courts of equity will, in their dis-, oretion, grant relief by re-examining the case upon its merits, * * * enjoining the party from pursuing the judgment at law.”

It is equally well settled by the authorities that the mere fact that false testimony was given or procured in the trial of the case in the state court by the successful party is not of itself a sufficient ground for enjoining the enforcement of the judgment, unless it clearly and satisfactorily appears that there is a reasonable certainty that the result of the judgment or of a new trial would have been different if such false and fraudulent testimony had not been given. In Dringer v. Railway Co., 42 N. J. Eq. 573, 581, 8 Atl. 811, 815, the vice chancellor, in reviewing this question, among other things said:

“A court of equity may unquestionably annul a judgment or decree which has been obtained by fraud, but, in order to justify such an exercise of power, it must be made clearly to appear that the judgment or decree has no other foundation than fraud; in other words, it must be made to appear that, if there had been no fraud, there would have been no judgment or decree.

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Bluebook (online)
108 F. 138, 1901 U.S. App. LEXIS 3757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holton-v-davis-ca9-1901.