Hulsey v. Commercial Investment Trust, Inc.

138 So. 766, 103 Fla. 609
CourtSupreme Court of Florida
DecidedNovember 19, 1931
StatusPublished
Cited by5 cases

This text of 138 So. 766 (Hulsey v. Commercial Investment Trust, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hulsey v. Commercial Investment Trust, Inc., 138 So. 766, 103 Fla. 609 (Fla. 1931).

Opinion

Davis, J.

Commercial Investment Trust, Incorporated, *611 was a New York corporation which had no office and did no business in the State of Florida, nor did it have any agent or other person in this State upon whom process could be served. C. I. T. was a separate and distinct corporation which did business and had an office in the State of Florida, where it was represented by one M. R. Jarvis, an agent. It had a Florida attorney who was Frank S. Barrett.

On January 13, 1927, certain parties filed their bill of complaint in the Circuit Court of Pinellas County against Skinner Machinery Company and others. The bill was in the nature of a creditors bill to reach assets of Skinner Machinery Company, a corporation. In this bill, Commercial Investment Trust, a corporation, was named as a defendant with Skinner Machinery Company and its other associated defendants. The object of the suit in so far as Commercial Investment Trust was concerned, was to charge it with the value of certain collateral securities which it was alleged to have obtained from Skinner Machinery Company and unlawfully converted to its own use, whereas such securities should have inured to the benefit of the creditors of Skinner Machinery Company.

In said suit process was issued and served on one M. R. Jarvis, as an agent of Commercial Investment Trust. As a matter of fact, he was not an agent at all of Commercial Investment Trust, but was an agent of C. I. T., a corporation of like character and business. This agent turned the summons over to one Frank S. Barrett, who had no connection whatsoever with Commercial Investment Trust but was the local attorney who represented C. I. T., a corporation. Said attorney entered his appearance in the cause in response to the summons, and the cause proceeded to decree pro confesso and final decree against Commercial Investment Trust. This decree was in the form of a money judgment in favor of Hulsey, Trustee in Bankruptcy for Skinner Machinery Company, which in the *612 meantime had been adjudicated bankrupt, the Trustee being substituted as a party complainant in the equity suit. The amount of this judgment was $12,779.06. The date of the decree was March 31, 1928.

The real name of the corporation intended to be made a defendant in the above mentioned suit is Commercial Investment Trust, Incorporated, although it was named in that suit only as Commercial Investment Trust, leaving out the word “Incorporated” as a part of the name. In ■the entry of appearance which was made by attorney Barrett, the name of the corporation was given as “Commercial Investment Trust, a corporation”.

There is no doubt that it was Commercial Investment Trust, Incorporated, which was the object' of the suit in which the decree was rendered and there is no doubt from the record that it was that corporation which committed the acts upon which the court' entered the final decree in the form of a money judgment.

After a purported final decree signed March 31, 1928, based on a decree pro confesso dated March 5, 1928, was entered as aforesaid, the Commercial Investment Trust, Incorporated, on April 14, 1928, appeared in the Court in which such decree was rendered and moved to vacate if. This appearance is alleged to have been general because said Commercial Investment Trust, Incorporated, moved in writing to set aside the default and expressed its willingness to present its defenses and proceed to trial on the merits, if granted leave of court so to do. The motion was denied. This was in legal effect the entry of a final decree as of that date against the Commercial Investment Trust, Incorporated, because it upheld and continued in force the previous decree which had been entered on March 31, 1928.

On May 18, 1928, the same defendant made another motion to vacate the decree and for a rehearing. In this motion it attacked the merits of the cause on the ground, *613 amongst others, that' the bill of complaint was without equity. This motion was also denied and a rehearing refused.

On June 7, 1928, without taking any appeal or making any other direct attack on the final decree entered in the suit' just referred to, the Commercial Investment Trust, Incorporated, brought its separate suit in equity, seeking to set aside the final decree which had been entered in the previous suit on the ground that said decree was entered without service having been lawfully made on Commercial Investment Trust, Incorporated, the actual defendant, although purported service appeared to have been made on C. I. T. corporation on the theory that C. I. T. Corporation and Commercial Investment Trust, Incorporated, were the same.

By way of defense asserted by an answer, Hulsey as Trustee, the judgment creditor under the final decree sought to be set aside and enjoined, averred the foregoing facts and upon the basis of such averment contended that because Commercial Investment Trust, Incorporated, although not served with process, appeared in the cause and attacked the merits of the suit, and was overruled in its efforts to have the final decree vacated by a direct attack upon it in the same proceeding in which it was entered, and had not appealed from the result of its effort in that suit, that it was without standing in a court of equity to have the enforcement of such decree enjoined in the present suit.

• This answer also set up by way of counter-claim or equitable set-off, that since the Commercial Investment Trust, Incorporated, was then before the court and within the jurisdiction of the judicial tribunals of Florida, that such company should be compelled to answer the claim which Hulsey, as Trustee, had against' such corporation, which was the same claim upon which the decree sought to be set aside had been entered, the theory of this afSrma *614 tive defense being that if the decree was void and subject to being set aside in an equity proceeding to enjoin its enforcement, that this would reinstate the equitable claim out of which such decree grew, and that such equitable claim was a proper matter to assert as a cross-demand in the event complainant should obtain the relief sought by it on its own bill Exceptions and a motion to strike the answer were interposed and sustained. Whereupon Hulsey, as Trustee, appealed and the questions presented here on such appeal relate to the rejection of the attempted defense and counter-claim.

In Rorick v. Stilwell, 101 Fla. 4, 133 Sou. Rep. 609, a case recently decided by this Court, it was held that where persons who are named as defendants in an equity suit, where process has been issued and returned as served upon them,when in truth and in fact no such legal service has been made, although shown as such by the return on the process, have the right to call such lack of jurisdiction to the attention of the equity court by specially appearing in the cause and moving to set aside or vacate the alleged service and return of service of process when it appears in the record as a virtual basis for the court to assume that it has actually obtained jurisdiction over the person of the defendant.

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Bluebook (online)
138 So. 766, 103 Fla. 609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hulsey-v-commercial-investment-trust-inc-fla-1931.