Hunt v. Field

9 N.J. Eq. 36
CourtNew Jersey Court of Chancery
DecidedMay 15, 1852
StatusPublished
Cited by2 cases

This text of 9 N.J. Eq. 36 (Hunt v. Field) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunt v. Field, 9 N.J. Eq. 36 (N.J. Ct. App. 1852).

Opinion

The Chancellor.

One Samuel Schoonmaker was carrying on a mercantile business at Paterson, in Passaic county. Prior to the 27th day of January last past, he conveyed all the goods and merchandise in his store to the defendants, Slawson, Barret & Co., a firm doing business in New York. He also confessed a judgment to the said firm in the Passaic Pleas for the sum of $1368.16. Prior, in point of time, to this conveyance and judgment, the said Schoonmaker had confessed, in the same court, a judgment in favor of others of the defendants, Field, Merritt & Co., of the city of New York, for the sum of $3737.35. The goods were delivered [37]*37under the conveyance mentioned, and executions were issued upon the judgments, levies made and the property advertised for sale by the sheriff.

On the twenty-seventh day of January last, the complainants caused a writ of attachment to be issued out of the Circuit Court of the county of Passaic, against Schoonmaker as an absconding debtor.

The complainants have filed this bill, alleging the conveyance of the goods, and the judgments confessed to be fraudulent, and praying an injunction against the sheriff and the rest of the defendants, restraining them from selling or otherwise disposing of the goods, and that the conveyance and judgments confessed to the defendants may be decreed null and void for fraud.

It is well settled, that a general creditor having no specific lieu on the debtor’s property, has no right to interfere with any disposition his-debtor may see fit to make of it. Edgar v. Clevenger et al., 2 Green’s Ch. Rep. 258-464; 1 Green’s Ch. Rep. 258, and note to the case.

But the complainant in this case insists that he has, by virtue of his attachment, such a lien as a court of equity will recognize, in order to give him a standing in the court, to question the disposition of the debtor’s property.

By the attachment act, the sheriff is commanded to attach the rights and credits, moneys and effects, goods and chattels, lands and tenements of such debtor, wheresoever they may be found, and it is declared that the writ shall bind the property and estate of the defendant so attached from the time of executing the same.

The act declares that the personal property attached shall remain in the safe keeping and care of the officer, in order to answer and abide the judgment of the court, unless the garnishee shall give bond for its forthcoming. It provides that where the garnishee denies having any property of the debtor in his possession, or of his being indebted to him, the plaintiff in attachment may, under certain circumstances, institute a suit at law against the garnishee, which shall be continued [38]*38by the court until the action against the defendant in attachment shall be adjudicated upon and determined.

The act, in these and in various other ways, has given every facility to the plaintiff in attachment, to reach and secure the debtor’s property, both real and personal. And to the auditors appointed by the court from which the attachment may have issued, extraordinary powers are given to examine the wife of the defendant and other persons, under oath, touching all matters relating to the trade, dealings, moneys, debts, effects, rights, credits, lands, tenements, property and estate of the defendant, and his secret grants or fraudulent transferor conveyance of the same. And they may issue their warrant to the sheriff or any constable of the county, commanding them to break open any house, chamber, room, shop, door, trunk, chest, or other place or thing where they shall have reason to believe any property is deposited or secreted. And finally, it is enacted that this act shall be construed in all courts of judicature in the most liberal manner for the detection of fraud, the advancement of justice, and the benefit of creditors.

Where the legislature has done everything in its power towards enabling the attaching creditor to reach the debtor’s property, in whosoever hands it may be, and has enjoined it upon all the courts of the state to give the most liberal construction to the act, for the purpose of ferreting out fraud, to advance justice and benefit the creditors, is it a sufficient reason, when this court is appealed to to exercise its powers, in preventing the whole of the debtor’s estate, real and personal, from being swept beyond the reach of the attachment by a fraudulent conveyance or judgment, to refuse its aid, and declare itself powerless, upon the ground that the plaintiff in attachment has no specific lien upon the property ? By virtue of his attachment the creditor attaches all the rights and credits by the express provisions of the act. What better lien does a judgment and execution creditor obtain ? In fact, he gets none at all, for he cannot, by virtue of his execution, levy upon or sell them.

[39]*39in the case of Melville v. Brown, 1 Harr. R. 364, James Hoy, who had taken out an attachment against Brown, moved the Supreme Court for a feigned issue to try the bona fides of a judgment confessed to Melville. The Supreme Court denied the motion, upon the ground that if the applicant had gone into a Court of Chancery, the court would not have entertained his bill, because he was no more than a creditor at large. The learned Chief Justice cites the leading American and English cases for the general principle that a creditor at large cannot interfere with the disposition of his debtor’s property. Two reasons are given why a court of equity would not interfere on behalf of an attaching creditor. First, the reason given by Chancellor Kent, in Wiggins et al. v. Armstrong et al., 2 J. C. R. 144, that to permit such an interference might lead to an unnecessary, fruitless and oppressive interruption of the rights of the parties. And this remark is made in view of the fact that upon investigation, it may turn out that there is no debt due from the defendant to the plaintiff, and if so, the litigation would have been altogether fruitless, whether the judgment questioned was fraudulent or not.

But while such a reason may be good as respects a mere creditor at large, may it not be answered that in reference to an attaching creditor, the act itself justifies, and almost commands, this interference? Does not the act put him, by virtue of his attachment, upon a very different footing from that of a mere creditor at large ? And reviewing the object and policy of the act throughout, is it not obligatory upon courts of law and equity to construe the provisions of the act liberally, although it may occasion some delay, inconvenience and expense to parties? The same inconvenience and oppression here suggested, necessarily follow upon the execution of some of the provisions of the act. The auditors may bring suits for sums under one hundred dollars. Suppose they should sue and recover the money, and after all it should turn out that the defendant in attachment did not owe the plaintiff, or anybody else, anything; or suppose, after put-sing these alleged creditors of the defendant in attachment [40]

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Related

Lysakowski v. Blauvelt
171 A. 500 (New Jersey Court of Chancery, 1934)
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168 A. 61 (New Jersey Court of Chancery, 1933)

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Bluebook (online)
9 N.J. Eq. 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-field-njch-1852.