Justice v. Georgia Industrial Realty Co.

63 S.E. 1084, 109 Va. 366, 1909 Va. LEXIS 44
CourtSupreme Court of Virginia
DecidedMarch 11, 1909
StatusPublished
Cited by9 cases

This text of 63 S.E. 1084 (Justice v. Georgia Industrial Realty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Justice v. Georgia Industrial Realty Co., 63 S.E. 1084, 109 Va. 366, 1909 Va. LEXIS 44 (Va. 1909).

Opinion

Whittle, J.,

delivered the opinion of the court.

The decree under review dismissed on demurrer a bill filed by the appellant, G. E. Justice, widow of W. M. Justice, deceased, to have assigned her dower in a certain island located in the waters of James river, in the city of Richmond, known as “Justis’ Island,” whereof her late husband had been seized in fee simple.

The material allegations of the bill are that the William R. Trigg Shipbuilding Company, a private corporation, undertook to acquire “Justis’ Island” by purchase from W. DJ. Justis, for use in connection with its adjacent shipyard; that its efforts to purchase the island proving unsuccessful, it entered into an agreement with certain managing officers of. the city of Richmond, to the effect following: That the city would condemn “Justis’ Island” pretendedly, as necessary for the improvement of its harbor and when thus acquired would convey it to the Trigg Company in exchange for certain other property owned by that company, and which the city needed for its purposes, the company paying the agreed difference in values between the two properties in money; that in pursuance of this agreement the city council (well knowing that the island was not needed or to be condemned for the purposes stated in the ordinance, but was to be immediately conveyed to the Trigg Company in exchange for other property) passed an ordinance directing the city attorney to condemn the island for the alleged improvement of the harbor.

“Justis’ Island” was condemned accordingly, and the contract between the Trigg Company and the city consummated by [368]*368the execution of mutual conveyances to the respective properties. The condemnation proceedings gave no intimation to the hustings court of the agreement between the' Trigg Company and the city, but the record represented to the court that the property was being condemned for a public use, and the court ordered its condemnation on that theory. It is further alleged that the condemnation proced'ings were a fraud practiced upon the court.

The bill also alleges that the appellant was not a party to the condemnation proceedings, and had no knowledge of them until long after they were concluded; and that the appellee, the Georgia Industrial Realty Company, purchased the property iu controversy with notice of the manner of its acquisition by the Trigg Company.

Taking as true, as we must do on demurrer, these properly pleaded allegations of the bill, we have the case of a municipal corporation, under the guise of acquiring private property for public use, in point of fact fraudulently procuring the condemnation of private property for private use. The question which confronts us, therefore, is shall a court of equity sanction a proceeding of this character upon the hypothesis that a judgment thus obtained is not amenable to collateral attack at the suit of the appellant, whose inchoate right of dower has since become consummate.

The decision of the trial court is placed upon the ground, “that Mr. Justis was the only necessary party interested in the condemnation proceedings had in the hustings court, except the city of Richmond, and that the decision of the hustings court upon all questions involved in that controversy is impregnable to collateral attack.”

The conclusion of the learned court would unquestionably be sound in a lawful proceeding against the husband to condemn land in which the wife had an inchoate right of dower. In such case the wife, not being a necessary party under the statute, on the. principle of representation, would be concluded, however [369]*369irregular the proceedings or erroneous the judgment might be. But the view taken, by the lower court loses sight of the distinction, between a judgment which is voidable simply by reason of error of judgment of the court which rendered it, upon matters within the pleadings and issues, and a judgment voidable for fraud practiced upon the court which rendered it, and which is extrinsic and collateral to any issue, submitted to- its determination. , The judgment' in the first instance can only be eorr rected by writ of error or other direct proceeding, but in the last it may be impeached collaterally. Mahoney v. State Ins. Co., 133 Iowa, 510, 110 N. W. 1041, 9 L. R. A. (N. S.) 490.

That distinction seems to’be clearly recognized by the authorities. Bor instance, if a court of general jurisdiction in condemnation proceedings, with the facts before it, erroneously appropriates private property for private use, that is an error of judgment for which its sentence may be reversed on writ of error. But if, on the other hand, the court be induced to render such judgment by the fraudulent concealment of'the facts upon which it is founded, such judgment is liable to collateral impeachment.

In the case of Norfolk & Western Ry. Co. v. Mills, 91 Va. 613, 21 S. E. 556, in a concurring opinion at p. 641 of 91 Va., Keith, P., announces the general principle, that “there is no instrument so solemn, there is no judgment or decree so binding, but that if fraud in its procurement be alleged and proved, it ceases to protect the wrong-doer or to obstruct the injured in the assertion of their rights.”

“Fraud will vitiate any, even the most solemn transaction, and an asserted title to property, founded upon it, is utterly void.” U. S. v. Libellants, &c., 15 Peters, 518, 594, 10 L. Ed. 826.

The rule ■ with regard to the distinction between cases in which judgments may and those in which they may not be impeached collaterally for fraud is stated thus: “They may be -impeached by facts involving fraud or collusion, but which [370]*370were not before the court or involved in the issue or matter upon which the judgment was rendered. They may not be impeached for any facts, whether involving fraud or collusion or not, or even perjury, which were necessarily before the court and passed upon.” The Acorn, 1 Fed. Cas. No. 29, 2 Abb. 434. See also Kansas City, &c. R. Co. v. Morgan, 76 Fed. 429, 21 C. C. A. 468; U. S. v. Chung Shee (D. C.), 71 Fed. 277; Amador C. & M. Co. v. Mitchell, 59 Cal. 168; Cotterell v. Koon, 151 Ind. 182, 51 N. E. 235; McCambridge v. Walraven, 88 Md. 378, 41 Atl. 928; Ward v. Southfield, 102 N. Y. 287, 6 N. E. 660.

In the case of the State of Michigan v. Phoenix Bank, 33 N. Y. 9, the State of Michigan appointed a board of State officers to hear evidence and adjust a demand of the bank against the State. By fraudulent imposition on the board, the bank procured an award against the State for $35,000. In a suit by the State against the bank to recover the money paid on the award, the bank pleaded the finality of the award; but the court of appeals of New York was of opinion that the award stood on the same footing as the judgment of a court, and held that a judgment procured by fraud imposed upon the court which rendered it could be collaterally impeached on that ground. This case was approved in Hackley v. Draper, 60 N. Y. 92; Ross v. Wood, 70 N. Y. 11; and Hunt v. Hunt, 72 N. Y. 227, 28 Am. Rep. 129.

So, in the case of Dunham v. Dunham, 162 Ill. 589, 44 N. E. 841, 35 L. R. A. 70, the Supreme Court of Illinois disregarded a decree for divorce pronounced by a South Dakota court, because it had been procured by fraud practiced on the court.

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Bluebook (online)
63 S.E. 1084, 109 Va. 366, 1909 Va. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/justice-v-georgia-industrial-realty-co-va-1909.