Lowenberg v. Jefferies

74 F. 385, 1896 U.S. App. LEXIS 2699
CourtU.S. Circuit Court for the District of Montana
DecidedMay 8, 1896
DocketNo. 265
StatusPublished

This text of 74 F. 385 (Lowenberg v. Jefferies) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowenberg v. Jefferies, 74 F. 385, 1896 U.S. App. LEXIS 2699 (circtdmt 1896).

Opinion

KNOWLES, District Judge.

Tbe above-named plaintiffs brought their actions against the above-named defendants to recover of [386]*386them the sum of $12,181.13, with 10 per cent, interest and cost of suit. It is set forth in the complaint that plaintiffs commenced an action in the district court in and for Lewis and Clarke county, Mont., to recover said sum-, against Isaac Greenhood and Ferdinand Bohm, as co-partners; that in this action they caused an attachment to issue against the property of Greenhood, Bohm & Co. for said sum, and to be delivered to the defendant Charles M. Jefferies, as sheriff of the above county; that under this writ the said Charles M. Jefferies, as sheriff, levied upon and took into his possession a large amount of the goods, wares, and merchandise of the said Greenhood & Bohm within the above county not exempt from execution; that the said property was worth the sum of $50,-000. Subsequently,' it appears, plaintiffs obtained judgment against said Greenhood, Bohm & Co. for said sum of $12,181.13. Upon this judgment execution was issued and delivered to said Jefferies, as sheriff, and at the time said sheriff had said, property in his possession. It is also alleged that, on the 7th day of July, 1892, said execution was by said Jefferies, as sheriff, returned “Nulla bona.” In said return it was recited that said execution was received by him on the 11th day of April, 1892, and that, after due and diligent search, he was unable to find any property of the said Greenhood, Bohm & Co. with which to satisfy said judgment. It is further alleged that said Jefferies, without the consent of plaintiffs, after said attachment, released the same, without taking any bond or security; that the said judgment is unpaid. Plaintiffs therefore ask judgment against defendants in the sum of $12,-181.13, and for $50 as costs of suit, and interest.

To this complaint said Jefferies made answer, and, after some denials therein of matters set forth in the complaint, set up certain facts as new matter constituting a defense. The principal matters set forth are that the Merchants’ National Bank of Helena commenced an action, previous to the action of plaintiffs against said Greenhood, Bohm & Co., to recover the sum of $35,945.48 and caused the property of said firm to be attached therein, and subsequently procured judgment against them for that sum; that upon this judgment execution was issued, and thereon the said Jefferies returned, “No property to be found in my county to satisfy the foregoing execution, except the property attached herein, and embraced in an alleged assignment of Greenhood, Bohm & Co. to Max Kahn, on the 12th day of February, 1892, and except the garnishments, and I herewith return the said execution unsatisfied.” Whereupon the said Merchants’ National Bank filed a creditors’ bill, for itself and any other judgment creditor of the said Green-hood, Bohm & Co. who might claim the benefit of the action, with the view of setting aside said assignment to Max Kahn as a fraud upon creditors. In this suit, on the motion of the said bank, a receiver was appointed to take charge of said property so attached and named in the above execution return. The answrer also shows that there were attachments on said property, prior to that of plaintiffs, amounting to some $90,000; that it was the same property named in the return to all the attachments, and that the [387]*387attachment of plaintiffs was levied subject to the prior rights of the prior attaching creditors; that, in said suits, judgments in the sum of $75,000 have been entered.

To this answer plaintiffs filed their demurrer. The first ground of demurrer is that that part of the answer commencing on line 10 of the third page of said answer, and extending to and ending with paragraph 13, does not state facts sufficient to constitute a cause of defense, and that that part of said answer setting forth the prior attachments and judgments is irrelevant, and, if any defense, an equitable, one.

The questions raised in these pleadings and demurrer are (1) as to whether the appointment of a receiver by the court is any defense to the matters set forth in the complaint, and (2) as to whether the facts' set forth as to the attachments previous to that of plaintiffs, and judgments obtained thereon to the amount of $75,000, are irrelevant, or, if relevant, matters constituting an equitable defense only.

it is probably true that the general rule is that, when a sheriff attaches the property of a defendant in an action at law, he acquires a special interest therein, and his. possession thereof cannot be divested by a receiver, subsequently appointed, in another action, to which'the said sheriff was a party, and in which appointment the receiver is commanded to take possession of all of the property of the attachment debtor. Davis v. Dray, 16 Wall. 203-218; Parker v. Browning, 35 Am. Dec. 717. Where the sheriff is an officer of the same court that appointed the receiver, and the action in which he attached the property in his possession is pending in that court, this general rule may be varied, and the court: may have the power to direct the sheriff to deliver the attached property to the receiver. At times, it is said, attached property is in the custody of the law. In the federal courts it has been held that the possession of the attaching officer is that of the court. Freeman v. Howe, 24 How. 450; Krippendorf v. Hyde, 110 U. S. 280, 4 Sup. Ct. 27.

In the case of Griffin v. Thompson, 2 How. 244, the supreme court said:

“There is Inherent in every court a power to supon ise the conduct oí its officers, and the execution of its judgments and process.”

In the cast; of Naumburg v. Hyatt, 24 Fed. 898, 902, Judge Dick said:

“But, independent of the provisions of the above-named statute, I am of the opinion that there is an inherent power in a court of law, as well as a court of equity, over its own process, aud in the disposition of property in the custody of the law so as to prevent serious injury to the parties interested in such property, and to afford just and adequate relief.” •

If a court has ¡lie power inherently to make such disposition of property as would seem to it proper when the same is in the custody of the court, or, as it is termed, in the custody of the law, then it may order the same to be turned over to a receiver, although such action may have been irregular and ill advised. Having the jurisdiction to act in this matter, its action cannot be attacked collaterally, and its judgment or determination or order may be a [388]*388justification to the officer affected thereby. In the case of Naumburg v. Hyatt, supra, a receiver was appointed under circumstances very similar to the one at bar, and it was held the court had power to malee this appointment. It may be that the authority to make the appointment in that case was referred to a statute of the state. If so, there is a similar statute in the Montana Code of Civil Procedure. It should be observed that it appears, in this case, there was a contest as to the right to the possession of this property between Max <Kahn, the assignee of Greenhood, Bohm & Co., and the sheriff; that the application for a receiver was made by the attaching creditors, who had the first lien upon the attached property; and that said property was taken into possession of the sheriff first by virtue of their attachments.

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Related

Griffin v. Thompson
43 U.S. 244 (Supreme Court, 1844)
Freeman v. Howe
65 U.S. 450 (Supreme Court, 1861)
Davis v. Gray
83 U.S. 203 (Supreme Court, 1873)
Krippendorf v. Hyde
110 U.S. 276 (Supreme Court, 1884)
Becker v. . Torrance
31 N.Y. 631 (New York Court of Appeals, 1864)
Naumburg v. Hyatt
24 F. 898 (U.S. Circuit Court for the District of Western North Carolina, 1885)

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Bluebook (online)
74 F. 385, 1896 U.S. App. LEXIS 2699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowenberg-v-jefferies-circtdmt-1896.