Mabry v. Manney

77 S.W.2d 975, 190 Ark. 154, 1935 Ark. LEXIS 13
CourtSupreme Court of Arkansas
DecidedJanuary 14, 1935
Docket4-3653
StatusPublished
Cited by2 cases

This text of 77 S.W.2d 975 (Mabry v. Manney) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mabry v. Manney, 77 S.W.2d 975, 190 Ark. 154, 1935 Ark. LEXIS 13 (Ark. 1935).

Opinion

Meiiaeey', J.

This action was begun on November 29, 1932, in the Pulaski Chancery Court by the appellant, J. W. Mabry, against M. P. Manney, R. W. Caldwell and Black & White Stores, Inc. The appellant alleged that on January 11, 1929, he obtained a judgment in the circuit court of Pulaski County, Arkansas, against the defendants, M. P. Manney and R. W. Caldwell, for damages in the sum of $2,000, which judgment was rendered in an action for a tort in the negligent killing of appellant’s son; that no part of said judgment had been paid, and that the defendants so concealed their property that nothing can be found upon which to levy an execution; that the defendant M. P. Manney ivas one of the original incorporators of the Black & White Stores, Inc., which corporation runs and operates a line of high-class grocery stores in the city of Little Rock, and is apparently doing an extensive and prosperous business; that at the time of the incorporation, the said M. P. Manney owned 50 shares of the corporation’s non-par value stock, and that he is now a stockholder, director and officer of said corporation, and for many years has been in the employ of the corporation as manager of its stores; that said Manney is a director and officer of said corporation, and that the amount of his salary is kept a secret from the public and from the appellant, and that when the corporation is garnished as his debtor, it always answers that Manney has anticipated his salary, and is actually in debt to the corporation, so that proceedings 'by garnishment have been unavailing; that said Manney has failed, since the rendition of said judgment, to make any assessment of his property, and is keeping his property under cover so that it cannot be reached by execution.

There was a prayer .for discovery and for an answer and statement as to the stock and its value that had been issued to Manney; that they be required to answer what salary is due Manney, what interest he has in the corporation; and that Black & White Stores be enjoined from paying any further salary to Manney.

On February 14, 1933, separate answer was filed by Manney, in which he denied all the material alegations of the complaint. Separate answer was filed by 'Black & White Stores on February 14, 1933, in which it stated that Manney was the owner of 11 shares of stock of the value of $10 per share, and that the corporation did not owe Manney, but he owed it $275.

Affidavit was filed by attorney for appellant, asking for an order requiring Black & White Stores to produce books and records for examination at the hearing, which petition was granted by the court.

On October 3, 1933, appellant filed an amendment to his complaint, alleging that he had caused executions to be issued against appellee Manney, upon the judgment sued on, and said executions were returned unsatisfied. There were three executions returned unsatisfied, and the fourth execution was not returned, but appeared to have been lost.

On October 18, 1933, the appellee, Black & White Stores, filed separate answer to the amended complaint. There was an intervention filed on December 26, 1934, in which Fred A. Isgrig, who was attorney for Mabry and secured the judgment for $2,000, asked judgment for $1,000. The court, after hearing the evidence, entered a decree in favor of the Black & White Stores and dismissed appellant’s complaint as to Black & White Stores. The case is here on appeal.

The fact that appellant obtained a judgment in ton, against appellee M. P. Manney for $2,000 on January 11, 1929, is not disputed, and no claim is made that any part of said judgment has been paid. There is no dispute about several separate executions having been served and returned unsatisfied. One execution was levied on household goods, which Manney’s wife claimed to own, and Manney stated in his answer that he had no property of any sort except the shares of stock in the 'Black & White Stores and his wearing apparel.

Y. S. O’Neal, deputy circuit clerk, testified as to the executions having been issued on the judgment, which he testified was for $2,000, and that the executions were returned unsatisfied.

The appellant, Mabry, testified that no part of the judgment sued on had ever been paid.

E. 0. Hicks, cashier of Black & White Stores, Inc., testified that Manney had 11 shares of preferred stock and 11 shares of common stock in the Black & White Stores; that the corporation held no other property belonging to Manney; that Manney was vice-president and general manager of the corporation; and since the filing of the suit in this case Manney had been in the employ of the corporation as general manager at a salary of $85 a week; that the corporation never had any contract with Manney, and that Manney was an employee of the corporation at will; Manney worked the same way since the filing of the suit, and the corporation had been paying him ever since that time; Manney owed the corporation $275 when witness appeared in court before, and owed ihe corporation $300 now; the corporation did not pay Manney his salary of $85 each week, but had been advancing him cash whenever he needed it, or any time he wanted it; that Manney had been earning $85 a week since the suit was filed, and the corporation had been advancing it to him; Manney anticipated his salary all along and kept in debt to' the corporation a little bit all the time; Manney was employed by the board of directors at a salary of $85 a week without any definite period of employment, and the corporation paid him his wages as they accrued from week to week, and advanced him a little money from time to time: other employees received advancements, so that it was not unusual as to Manney.

This suit was brought under § 4366 of Crawford & Moses’ Digest, which is § 473 of the Civil Code. Section 474 of the Civil Code is 4368 of Crawford & Moses’ Digest, and reads as follows: “The answers of all the defendants shall be verified by their own oath, and not by that of an agent or attorney, and the court shall enforce full and explicit discoveries in such answers by attachment. ’ ’

This section in the Civil Code follows immediately after the section providing for suit for recovery, and it is plain from reading this last section that it has reference only to § 4366. In Crawford & Moses’ Digest, for some reason, there is a section between the two, but in the Code and in the other digests of the laws of Arkansas, § 4368 not only folloAvs immediately § 4366, but does not refer to any other pleading except that mentioned in § 4366. See Crawford’s Civil Code, pages 368-369. This statute Avas taken from the Civil Code of Kentucky. Morgan Utilities, Inc., v. Perry County, 183 Ark. 542, 37 S. W. (2d) 74.

The statutes on garnishment and attachments have no application, and the only statutes involved in this case at all are §§ 4366 and 4368 of Crawford & Moses’ Digest. C. A. Rees & Co. v. Pace, 156 Ark. 473, 246 S. W. 491.

Appellees contend that, because the answer of appellees was not excepted to or denied, no issue was joined, and it is contended that the answer is taken as true. This might be true, if the appellees in their answers, had complied with §.4368 of Crawford & Moses’ Digest.

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Bluebook (online)
77 S.W.2d 975, 190 Ark. 154, 1935 Ark. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mabry-v-manney-ark-1935.