Hunt v. Fisher

29 F. 801, 1887 U.S. App. LEXIS 2962
CourtUnited States Circuit Court
DecidedFebruary 7, 1887
StatusPublished

This text of 29 F. 801 (Hunt v. Fisher) is published on Counsel Stack Legal Research, covering United States Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunt v. Fisher, 29 F. 801, 1887 U.S. App. LEXIS 2962 (uscirct 1887).

Opinion

Hammond, J.

But for Bondurant v. Watson, 108 U. S. 281, 287, I should have remanded this case; as to retain it would seem a violation of section 720 of the Revised Statutes, which prohibits the courts of the United States from staying proceedings in the state courts. It has seemed to me that the reason of that statute, the mischief sought to be prevented by it, and its prohibition, apply as well to a final decree staying a state comí proceeding as to that stay which comes of a preliminary injunction,.and that it operates, necessarily, to exclude from the broad language of the act of March 8, 1875, (18 St. 471, 472; Rev. St. [2d Ed.] § 738,) all cases sought to be removed which have ior their object any stay of the proceedings in a state court. Otherwise the federal courts acquire, by removal, a power heretofore denied to them, for substantial reasons, which ail commend, and without any directly manifesied intention of congress to repeal the prohibition. Yet the case first cited, and Smith v. Schwed, 6 Fed. Rep. 455, confine the statutory prohibition wholly to preliminary injunctions; so that, while wo cannot stay the state court’s proceedings in the beginning of a case, we may at the end of it,—a distinction certainly not indicated by section 720 of the Revised Statutes, and, possibly, not contemplated by the removal act of 1875. This is now referred to because the plaintiff, who brought this case hero from the slate court, insists that we cannot sit as a supervising court to review the proceedings of the chancery court of Davidson comity, through which, by a sale, ho acquired his title; yet this title ho seeks to protect by asking us to enjoin the further proceedings of the chancery court of Decatur county, wherein the defendants have procured a decree of sale. Undoubtedly it would have been better for all parties to have remained in the state court. By the consolidation of this case witii that the defendants had brought through the administrator of ’Walker, or by the concurrent hearings of the two cases, this controversy might have been settled. But, separated, as they have now been, by the plaintiff’s removal of this case, that method of bringing the parties together was not available; and the defendants thereupon objected here [806]*806that they should not be enjoined from proceeding in the state court, unless they were given an opportunity here to make defense, and, by cross-bill, to seek the relief, by foreclosure sale, that they were there attempting to procure. But the difficulty was that the plaintiff had not made them parties to his bill, and on their motion he was required to amend and bring them in. Of that order he now complains, and asks to be allo.wed to dismiss the amendment.

But, aside from the prohibition of the statute already referred to, there can he no doubt of our jurisdiction, or that of any court of equity, to grant the relief prayed, either by the bill or cross-bill. It is a controversy over the title to the property, and the fact that either side claims through judicial proceedings is immaterial. Mr. Justice Bradley shows this conclusively when he says:

“In such cases the court does not act as a court of review, nor does it inquire into irregularities or errors of proceeding in another court; but it will scrutinize the conduct of the parties, and, if it finds that they have- been guilty of fraud in obtaining a judgment or decree, it will deprive them of the benefit of it, and of any inequitable advantage which they have derived, under it.” Johnson v. Waters, 111 U. S. 640, 669, 4 Sup. Ct. Rep. 619; Barrow v. Hunton, 99 U. S. 80, 83.

But the difficulty of giving that full relief which, in cases as’complicated as this has been, a court of equity desires to grant, could only be overcome by the order that was made, that the parties in interest who had been left out of the bill should he brought into it. Although the administrator of Walker was a party defendant to plaintiff’s bill, and it was he that was injured by it, yet the real actors were the creditors who were seeking to realize their debts by enforcing the security Walker had provided for them. These the plaintiff left out, and now insists that this administrator must stand for Walker, and in his shoes, so far as necessary to enable plaintiff to estop him, in that capacity, from prosecuting his suit in behalf of the estate of Walker, but that he does not represent the creditors, and cannot set up their rights under the contract. For this very reason they should have been made parties to this bill, particularly as they were parties to the proceedings sought to be enjoined, —if not technically such-, substantially so, by the filing and prosecution of their claims in that suit. The notion that Walker’s administrator can be brought into this bill to represent Walker himself, but may be left out as a representative of the creditors, and that, the creditors themselves being also left out, the plaintiff has the advantage of excluding all consideration of their rights until they take some independent proceeding, is wholly untenable. The truth is, these new defendants should have been made parties to the Baxter bill, filed in Davidson county, under which plaintiff claims title, either as defendants or as plaintiffs, in whose behalf as well as his own Baxter should have proceeded, and the failure to make them such is the very foundation of their right to complain against him. Whatever else may be said of the contract by Walker, of April 6, 1874, as between him and his creditors, it was an assignment for their benefit. One of them, ignoring the others, in a county distant from that [807]*807in which the land lay, and from his residence, finding other parties to the contract there, filed a bill against Walker, his lately divorced wife, and her new husband, to foreclose the security for his own benefit alone. She was not a trustee for the creditors in any sense that she represented them as a party to the suit, but was a purchaser from and a guarantor to Walker, the debtor. Walker did not represent those creditors in any sense whatever. The hill was not filed in behalf of the plaintiff creditor, and others who might come in, nor did it give any excuse for not making them parlies,—such as that they were too numerous, or wore unknown after diligent inquiry to discover them, or wore non-residents, or the like. This was clearly a violation of that procedure which governs a court of equity in such cases, and enabled that creditor to. do what is here insisted upon shall be continued, namely, exclude the other beneficiarios, and take the property. The other creditors should have been made parties. Jones, Morig. § 1394 et seq.; Id. 1398; 1 Darnell, Ch. Pr. (1st Ed.) 329; Id. (5th Ed.) 190 et seq.

Tt is true, the holders of the legal title being before the court, the irregularity was such that, possibly, if a purchaser had bought at an adequate price, and paid his money into court, his title would not have been disturbed, but the discarded beneficiaries would have been left to follow the proceeds, as in Re Howard, 9 Wall. 175, and William v. Gibbes, 17 How. 239; amt consult Myers v. Fenn, 5 Wall. 205, and 2 Daniell, Ch. Pr. (5th Ed.) 1205.

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Bluebook (online)
29 F. 801, 1887 U.S. App. LEXIS 2962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-fisher-uscirct-1887.