Laupheimer v. Rosenbaum

25 Md. 219, 1866 Md. LEXIS 53
CourtCourt of Appeals of Maryland
DecidedJune 28, 1866
StatusPublished
Cited by5 cases

This text of 25 Md. 219 (Laupheimer v. Rosenbaum) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laupheimer v. Rosenbaum, 25 Md. 219, 1866 Md. LEXIS 53 (Md. 1866).

Opinion

Weisel, J.,

delivered the opinion of this Court,

This appeal is from an order of the Circuit Court of Baltimore city, passed on the 27th of June, 1865, refusing to dissolve an injunction, and continuing it until the final hearing.

It appears that Louis Harrison and Samuel K. Davidson, merchants of Baltimore, executed to R. Stockett Matthews, Esq., on the 18th day of February, 1861, a deed of trust of all their property and effects of every kind to be sold, and the proceeds applied to the payment of their debts, in the manner specified in said deed, which was duly acknowledged, sworn to and recorded. Mr. Matthews accepted the trust, took possession of the property, converted it into money by [225]*225sales and collections, and liad a large amount in hand for disposal under the deed.

On the 11th day of August, 1862, some of the creditors, viz: Jacob Laupheimer, Adolphus lleilburn, Samuel Moore and William Rogers (the last two trading as Samuel Moore & Company) filed a bill in the Circuit Court of Baltimore city, the object of which was to procure a decree to set aside said deed of trust; whilst others of said creditors, viz: the said Laupheimer, Johnston, Bros. & Go., and Moses Cohen, respectively, issued attachments out of the Superior Court of Baltimore 'city, and the said lleilburn a similar writ out of the Court of Common Pleas of said city, and procured the same to be laid in the hands of the trustee, Mr. Matthews, in order to reach the property or its proceeds in his hands as garnishee of said debtors, Harrison & Davidson. Pending this bill in equity, and these attachment proceedings at law, the bill in which the injunction was asked and obtained was filed on the 24th day of December, 1863, in said Circuit Court of Baltimore city, the same Court in which the other bill above referred to was pending. This new or second bill was filed by Joseph Rosenbaum and others, some of the preferred creditors in said deed of trust, whose claims were directed to be paid under the third clause thereof, against the grantors, the trustee, and the other creditors, setting forth the deed of trust and its terms, with an exhibit of a copy of it, and the possession of the trust funds by Matthews, “which have remained for some time in his hands owing to the other proceedings.” These proceedings are then referred to hy the names of the complainants in equity, and the plaintiffs in the attachments, with the date of the filing of the hill, and a general statement of its object in these words: “ in which they prayed that the said assignment might be set aside;” averring that they have been pending for moro than eighteen months, that the ai iacliuients have been eon tinned iroiu term to term without [226]*226trial, and that in consequence thereof the settlement of the trust had been delayed and the funds continued unproductive in the hands of the trustee- The bill then claims, with a view to the prevention of a multiplicity of suits, the absorption of the fund in unnecessary costs, and, to obtain* a speedy settlement of the trust,,to have the fund brought in* for distribution under the order of the Court, and the questions raised under the former hill and the attachments litigated in this proceeding, any priorities obtained by them being reserved to them. The hill prays for answers, that' Matthews, the trustee, may state the amount of trust money in his hands and his disbursemen ts; that the parties instituting, the other proceedings in equity and atlawmay be unjoined from further prosecuting the same, until the determination of this suit; that the trustee may be directed to bring the trust fund into Court for distribution, and for investment pending tbis proceeding; and for general relief. A subpesna and an. injunction were- accordingly asked, and the injunction was . granted and issued-

The only exhibits with the bill were a copy of the deed of trust and the assignments of two of the preferred claims-The complainants do not allege themselves, except by implication, to be creditors of Earrison and Davidson, and adduce; and exhibit no proofs or vouchers of their claims. Although some of the answers (not on oath) admit generally the allegations of the bill, that of Laupheimer does not admit the-truth of any of them, and leaves the complainants to the proof of them. In reference to* the other and pending proceedings, this answer admits that a hill of complaint of himself and others was hied “ attacking said deed,” and that the-said attachments were issued aud laid, and for the purpose as stated; that the purpose of said hill in equity was the “setting aside said deed,” and “to have said deed declared, void.” These expressions are found in different portions of the answer,, and it docs not appeal’ distinctly who were th<> [227]*227■parties defendants to that bill, besides the grantors in the deed of trust. The defendant, Lauplieimer, prayed that the injunction granted in the cause might he dissolved and the bill dismissed. This answer was put in on oath. The motion to dissolve having heen set down for hearing on bill, answers and exhibits, the Court below, on the 27th of June, I860, ordered that the injunction should he continued until the final hearing. This appeal was taken from this order. Before this order was passed, however, the trustee was required to bring the money into Court to be invested pending the proceedings. This was done by the appointment of receivers to take charge of the fund and invest it under the Court’s orders.

It will thus be seen, that whilst creditors were prosecuting a bill in Chancery to vacate the deed of 'crust, and others were pursuing the property of the debtor grantors by attachments at law, the present bill was filed to arrest these proceedings on the grounds alleged in it. How far a Court of Equity can interpose to injoin the action of another Court of Equity, or to tie its own hands, as in this case, upon an application of parties who have an acknowledged right to proceed in the race of diligence, to secure their claims, Gr to subject the debtor’s property to their payment by the removal of obstacles which he may fraudulently throw in the way of their recovery, is the subject of inquiry in this case. Have the complainants presented, by their allegations and the frame work of their bill, a case which, could challenge the interference of a Court of Equity ?

We have carefully examined the bill in the light of the authorities referred to in the argument, and can see no reason why the restraining power of the Court should have been invoked or exercised; certainly, as it respects the former bill in equity, the object of which seems, from these proceedings. to be to set aside the deed of trust, hut upon what [228]*228grounds does not appear from the present bill and proceedings. "Whether the present complainants were entitled to an injunction must appear from the statement of their character as suitors, and of their case and pretensions for equitable relief. They do not distinctly aver themselves to be creditors or otherwise interested, except by reference to the deed of trust, exhibiting no sufficient proofs or evidence of their claims, if creditors they be, or assigning a satisfactory reason for their non-production. “To warrant a Court of Equity in issuing an injunction, strong prima facie evidence of the facts on which the complainants’ equity rests must be presented to the Court to induce its action,” &c. Union Bank vs. Poultney, 8 G. & J., 332. Nusbaum vs. Stein, 12 Md. Rep., 318, 319. Mahaney vs. Lazier, 16 Md. Rep., 73.

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Bluebook (online)
25 Md. 219, 1866 Md. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laupheimer-v-rosenbaum-md-1866.