Lyons v. Planters' Loan & Savings Bank

12 L.R.A. 155, 12 S.E. 882, 86 Ga. 485, 1890 Ga. LEXIS 285
CourtSupreme Court of Georgia
DecidedDecember 31, 1890
StatusPublished
Cited by33 cases

This text of 12 L.R.A. 155 (Lyons v. Planters' Loan & Savings Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyons v. Planters' Loan & Savings Bank, 12 L.R.A. 155, 12 S.E. 882, 86 Ga. 485, 1890 Ga. LEXIS 285 (Ga. 1890).

Opinion

Bleckley, Chief Justice.

1. The first thing is the question of service. If the defendants below were not before the ciourt in a way to bind them, and if they presented that objection in due time and manner, what was done as the outcome of the proceedings would have no final result. The complaint as to service was that, although there was a subpoena annexed to the original bill,' there was no copy of that subpoena served on the defendants, copies of the hill only being served. The case was returnable to the October term, 1888. At the appearance term the names of counsel for the defendants as appearing in their behalf, were entered on the bench-docket. On April 12th, 1890, the defendants demurred to the petition, “because said petition and the matters therein contained in mauner and form as therein stated and set forth, are not sufficient to constitute a cause of action,77 and on several special grounds, one of which was “because there is no copy process annexed to any of the copy petitions served upon defendants.77 The special demurrer was not sworn to so as to entitle it to stand or be treated as a dilatory plea, in which character it would have to be sworn to. Code, §3456. Of course such an averment as a ground of special demurrer was no more than blank paper, for no such defect as want of process annexed to the copy petitions served on defendants, appeared upon the face of the petition or elsewhere in the record. To demur generally to a petition as presenting no cause [487]*487of action is to plead to the merits of the case. Here, then, was appearance and pleading to the merits, which under the code was a waiver of service, a waiver which would have been effective had there been no process even to the original petition nor any service whatever. Code, §3335. After this it was too late to raise the question of service, whether by motion or by plea, for why should the defendants invoke the judgment of the court on the cause of action by demurrer, unless they were to be bound by that judgment when rendered? Tbe demurrer was overruled on the first day of the April term, which was the 21st of April, 1890, “upon petitioner’s properly verifying the petition and amendments.” This condition was complied with on the 29th of April, and not until the previous day was any separate motion made to dismiss because no copy process was attached to the copy petitions served upon the defendants. An additional ground of the motion then made was because the sheriff failed to serve the defendants personally with a copy of the petition. This motion was too late as coming after pleading by general demurrer to the whole action. It follows that there was no error in treating the defendants, in all the subsequent proceedings, as properly in court.

2. We think this was true, although there was no prayer for process either in the original or amended petition, since all such defects are now amendable (Code, §3479). And inasmuch as amendment may be made at any stage, even after verdict, amendable defects are waived by appearance and pleading.

3. The next question is as to the allowance of an amendment to the plaintiff’s petition, the amendment being objected to as introducing a new cause of action, and for the further reason that the original petition contained nothing to amend by. Without going fully into the contents of either, we may state in [488]*488general terms that the original petition, although very meagre, set up a claim to have the church property in question applied to the payment of a debt which the church owed to a former pastor for services as a clergyman. It is alleged that this debt was evidenced by a promissory note executed by the trustees and officers of the church in pursuance of a resolution passed by the church, which note had been indorsed by the payee, and that suit in favor of the plaintiff was then pending upon the note in the city court of Augusta. An in-i'unction was prayed for, the object of which was to prevent any disposition of the church property before the result of that suit .should be reached, and to hold the title of the property in statu quo until the further order of the court, the legal title being in the Perkins Manufacturing Company and the equitable ownership in the church. The amendment amplified the statement as to the debt, alleged it to be the debt of the church, averred that the suit on the note had been litigated, had resulted iii a judgment in favor of the plaintiff, that the defendants in that suit were personally insolvent and that the founded on the judgment had been returned nulla bona. It prayed*that the church property be subjected to the debt as the debt of the church, and called for equitable intervention because the legal title was not vested in the church nor in the defendants in the common law judgment. It treated that judgment as against the officers and trustees of the church in their personal and individual character and not in their character of trustees and officers, the theory of the plaintiff" evidently being that the note was not given in satisfaction or ex-tinguishment of the debt which the church owed to its pastor, but only as collateral security for the same. The original petition had subserved its immediate purpose when the amendment was offered. It had kept the title to the church property in statu quo until the [489]*489common law suit had proved fruitless. But it had a further object which was to render that property available for payment of the debt in case payment should not be realized out of the collateral note and the suit predicated thereon. The petition was, therefore, a foundation on which to build by amendment, in case further equitable proceedings should become necessary, and this contingency was realized when the makers of the note, at the end of legal process against them,, proved insolvent. The matter of the amendment was thus proper material for a supplemental bill, and by our code, §4181, could he brought in by way of amendment. We hold, therefore, that the court did not err in allowing the amendment.

4. The amendment which we have discussed was filed on the 18th of April, 1889, nearly one year before the demurrer was interposed. Bid the petition as amended present a cause of action ? The parties before the court were the Bank (the indorsee of the note given by the officers and trustees of the church), as plaintiff, and the church, represented by the trustees, the Perkins Manufacturing Company, together with the indorser, the original payee of the note, as defendants. Thus all the parties interested in the original contract between the church and its pastor, and in the ownership of the note which grew out of that contract, were represented. If that note was given and taken not in extinguishment «of the church debt, but merely as collateral, neither the note itself nor the suit and judg-, ment thereon in the city court would operate as a discharge of the debt. Wylly v. Collins, 9 Ga. 224. The petition treats the debt as still subsisting, and as one to be paid by the church, now that the collateral security has been prosecuted to a return of nulla bona. This security is both legally and equitably the property of the bank, the bank having purchased it for value. [490]*490Such being the case, the bank has the equitable ownership of the debt owing by the church, the collection of which out of the church property is the ultimate object of this action.

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Bluebook (online)
12 L.R.A. 155, 12 S.E. 882, 86 Ga. 485, 1890 Ga. LEXIS 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyons-v-planters-loan-savings-bank-ga-1890.