In re Downey

78 P. 772, 31 Mont. 441, 1904 Mont. LEXIS 172
CourtMontana Supreme Court
DecidedDecember 10, 1904
DocketNo. 2,081
StatusPublished
Cited by7 cases

This text of 78 P. 772 (In re Downey) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Downey, 78 P. 772, 31 Mont. 441, 1904 Mont. LEXIS 172 (Mo. 1904).

Opinions

MR. CHIEF JUSTICE BRANTLY

delivered the opinion of the court.

Original application for a writ of habeas corpus, and certiorari in aid thereof.

Prom the returns made to the writs it appears that on April 19, 1904, one David Trotter recovered a judgment in a justice’s court .in Silver Bow county against the complainant, Catherine Downey, for the sum of $234.88 and costs; that thereafter on the same day an abstract of the judgment was filed in the office of the clerk of the district court of the co.urity, and the judgment docketed; that an execution was issued by the clerk and placed in the hands of the sheriff for service; that the execution was returned wholly unsatisfied; that immediately thereafter the plaintiff began proceedings sxipplemental to this execution by filing in the district court his affidavit setting forth that the said Downey, the defendant named in the execution, possessed property which she xxnjustly refused to apply toward the satisfaction of the judgment, to-xvit, “an order for $2,000, or the [443]*443cash already paid thereon, said order being upon J. C. Carroll, supreme treasurer of the O. II. of A., and being drawn by Dr. E. Gauder, supreme president, and Gerald Keiter, supreme secretary” ; that the court thereupon issued its order requiring the defendant to appear at 2 o’clock in the afternoon and answer concerning her property; that she did appear and -was examined; that from this examination it appeared chac che defendant was the owner of an “order” upon the Catholic Knights of America, purporting to be immediately payable in St. Louis, Missouri," which she had then forwarded to the proper officer of the society at St. Louis for payment; and that on April 22d the court entered the following order: “The matter of supplementary proceedings to execution coming on regularly to be heard this 22d day of April, A. D. 1904, and after the hearing of the testimony of the plaintiff and the defendant, the same having been fully considered by the court, and it appearing therefrom that the defendant is about to receive and has received property which she unjustly refuses to apply to the satisfaction of the judgment in the above-entitled action: - Now', therefore, it is ordered that upon receipt.of $2,000 to be paid on an order forwarded by the defendant to J. C. Carroll, supreme treasurer of the C. K. of A., she, the 'defendant, C. Downey, do pay, and she is hereby ordered to pay, into the hands of the clerk of this court, out of said sum, the sum of $247, to satisfy said judgment in full.”

The complainant was present in court when the order was made. It further appears that, this order not having been obeyed, the court, upon application of the said Trotter, and after an examination of the complainant, adjudged her guilty of contempt, and committed her to jail until she should render obedience to the order by making the payment as directed, and that the complainant is detained in custody under a commitment issued in pursuance of this order. These proceedings w’ere thereupon instituted to secure the release of the- complainant upon the ground that the order was made without jurisdiction.

The contention is made by the • complainant that the order entered on April 22d, requiring her to pay the amount of the [444]*444judgment to the clerk out of moneys to be collected upon the order, is void, because in excess of jurisdiction, in this: that the order for $2,000 was the only asset in her hands or within her control touching which the court could have made any order; that the amount due thereon had not been collected, and was not under her control; and that, as the payer named in the order was not before the court, the only authority the court had in the premises, under the statute, was to direct the complainant to assign her right therein to Trotter to the amount of his judgment, or to appoint a receiver to collect the order and to pay the judgment out of its proceeds.

It is argued by the defendants that this order is appealable, and that, such being thé case, any error committed by the court was merely an irregularity or error within jurisdiction, and cannot be reviewed in this proceeding.

That the order directing payment to the clerk out of the moneys to be collected by the complainant was erroneous is apparent when we look to the statute authorizing the proceeding in aid of execution. The proceeding was instituted under Section 1260 of the Code of Civil Procedure. This and the following section specify the circumstances under which the judgment debtor may be required to answer. Under the former this may be done after an execution has been returned unsatisfied. The latter section (1261) is more stringent in its provisions. Under it the examination may be had before the return of the execution, and under some circumstances the debtor may be arrested. Section 1262 permits a person owing the judgment debtor to make payment to the sheriff and receive a discharge from him. Section 1263 provides a procedure to reach property in the hands of third persons, or debts due from them. Section 1264 authorizes the calling of witnesses in order to determine issues of fact arising during any of the proceedings. The order which may be made as to the disposition of property found to belong to the defendant is authorized by Section 1265. The remaining sections of the chapter provide for cases wherein the rights of third parties are put in issue, and for subjecting to the payment [445]*445of the judgment, through the agency of a receiver, assets which are not capable of manual delivery, or which may not be subject to sale by the sheriff under the execution. For we apprehend that if the property discovered is not exempt from execution, and of such a nature that it may be sold under the execution, and there are no claims of interest in it by third persons which should be determined by an appropriate action, it should be applied to the satisfaction of the judgment under the execution. The general purpose of the chapter is to provide a substitute for a creditors’ bill — a cheaper and easier method of reaching assets of the debtor which cannot be reached by the execution unaided. This is the view expressed by the Supreme Court of California in the early case of Adams v. Hackett, 7 Cal. 187; and, where the statute is followed, every species of property which is not exempt from execution may be made available to satisfy the judgment creditor’s claim, whether in the form of mere dioses in action or property capable of manual delivery. A substantial compliance with the statute is required. It cannot be invoked except for the purpose of enabling the judgment creditor to reach property which cannot be reached by the execution unaided. For if the property sought to be reached is in open view and tangible, the statute does not avail. The court must look to it for authority, and should make no order nor adopt a course of procedure not authorized by it. It may order the delivery to the sheriff of the property found in the hands of the debtor or of a third party where the title is not in issue, or it may authorize suit by the creditor to recover a debt due the defendant, or, in case either of these courses will not be effective, it may appoint a receiver to take charge of the property, and pursue such a course with reference to it that the creditor may receive satisfaction of the claim. There is no authority to require the debtor to collect his choses in action and apply them to the debt. Under the facts of this case, the court should have appointed a receiver to collect the claim of the debtor and apply it, or so much of it as was necessary.

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Cite This Page — Counsel Stack

Bluebook (online)
78 P. 772, 31 Mont. 441, 1904 Mont. LEXIS 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-downey-mont-1904.