Mallory S. S. Co. v. Thalheim

277 F. 196, 1921 U.S. App. LEXIS 1999
CourtCourt of Appeals for the Second Circuit
DecidedOctober 13, 1921
DocketNo. 155
StatusPublished
Cited by14 cases

This text of 277 F. 196 (Mallory S. S. Co. v. Thalheim) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mallory S. S. Co. v. Thalheim, 277 F. 196, 1921 U.S. App. LEXIS 1999 (2d Cir. 1921).

Opinion

ROGERS, Circuit Judge

(after stating the facts as above). There are .conclusive reasons why the application of the Mallory Steamship Company, the appellant herein, for injunctive relief and interpleader ,was-properly denied.

[1] In the first place, it is to be observed that the appellant was dilatory in making his application. The maxim is ancient, “Vigilantibus non dormienti-bus sequitas subvenit, and its meaning sufficiently obvious. The courts of equity have applied it in many cases, in which the right to equitable relief has been otherwise clear, simply because a party has slept upon his rights. As Rord Camden declared in Smith v. Clay, 5 Bro. C. C. 639:

“Nothing can call forth this court [chancery] into activity but conscience, good faith and reasonable diligence; where these are wanting, the court is passive and does -nothing.”

Now, what are the circumstances under which the appellant seeks the stay of the proceedings at law ? An action for conversion was commenced on August 4, 1920, by the respondent Thalheim as assignee of the International Credit Trust against the Mallory Steamship Company, defendant, the petitioner and appellant herein. The steamship company filed its answer on September 9, 1920, in which it merely denied all the material, allegations of the complaint and set up no affirmative defenses, legal' or equitable, despite the fact that at that time all of the material allegations of the present petition were known to it. Issue in that action was joined on September 20, 1920. After the joinder of issue in that action its attorneys notified the attorney for Thalheim that at the trial of the action strict proof of all the allegations of the complaint would be required, including, not only proof of the misdelivery of said merchandise, but of all the facts necessary to show the contents, packing, and shipping of the great number of cases delivered to the steamship company and for which it issued its bills of lading.

In preparing the action for trial it was necessary for counsel for Thalheim to visit various states, to take depositions of witnesses familiar with the facts connected with the packing and shipment of some of .the -cases to George Mogensen which were subsequently delivered to the steamship company. The law action first appeared on the day calendar for trial during the month of April, 1921, and was adjourned at the request of the defendant until May. During the month of May, it again appeared on the day calendar, and was marked ready for -trial, and held by the court until June, 1921. During the month of. June, when the case again appeared on the day calendar, it was again marked ready, but at the suggestion of the judge who was presiding the case was passed until September. The action again appeared on the calendar for trial on September 12, 1921. At the request of the defendant it was arranged that the case should be held ready, so that the trial should not begin before September 15, 1921. The case was marked [201]*201ready by both sides on September 15th, again on September 16th, and again on September 19th. On the morning of September 19th, when the calendar was clear and the case could have immediately proceeded to trial, counsel for the complainant stated to the court that it was about to serve a bill in equity to bring in various alleged claimants, and as incident thereto would apply for a temporary injunction staying the trial of the law action. The judge thereupon directed that the case hold its position on the calendar and passed it until September 21st. A similar disposition of the case was made on September 22d. On September 23d, an application was made to the District Court for an order staying the trial of the law aciion upon an unserved petition, which constitutes the moving paper herein.

It thus appears that the allegations of the hill in equity were as well known to the appellant on the date when the answer was served as they are to-day, and, though they could have been asserted by way of equitable defense, the appellant contented itself with a general denial. Now, after the law case had appeared more than a dozen times on the day calendar, and could have been immediately tried, and after the respondent Thalheim had thoroughly prepared.his case for trial at great expense,, the appellant sought to stay his action.

The petitioner seeks to excuse this laches in not bringing the alleged facts constituting the equitable defense to the attention of the court sooner on the ground that Deo Brill & Co. is a Roumanian partnership, and that it has refused to submit itself to the jurisdiction of this court hitherto. It is significant that the guaranty received by the complainant herein was not executed by Deo Brill & Co. It was executed by the Banque Marmorosch Blank & Co., which has large offices at No. 29 Broadway in this city, and has a managing agent on whom the process of this court could have been served. It maintains large bank accounts in this city, and jurisdiction could have been acquired by attachment had the appellant seen fit to do so.

It seems to us that the application to stay the action at law comes too late, after a party with full knowledge of all the facts has allowed the suit to go to issue and to he ready for trial, and then comes at the last moment to stay the action to prevent a multiplicity of suits. Richardson v. Davidson, 53 Hun, 630, 5 N. Y. Supp. 617. What has been said would be true, if the appellant originally had grounds for equitable relief. But it is our opinion that upon the facts as they are disclosed by the record no reason has existed at any time for its coming into equity for the relief for which it is seeking. The relief sought is that of requiring the respondents to interplead, and thus relieve the appellant of the danger it is thought to he in from the claims which they assert. But the appellant’s position is quite untenable.

[2] Where it appears that as to any of the defendants the complainant is a wrongdoer, his bill of interpleader cannot be sustained. Slingshy v. Boulton, 1 Ves. & B. 334; Morristown First National Bank v. Bininger, 26 N. J. Eq. 345; Hatfield v. McWhorter, 40 Ga. 269; Conley v. Alabama Gold & C. Ins. Co., 67 Ala. 472. It is apparent that the condition in which the steamship company finds itself is of its own intentional creating in that the merchandise for which it had [202]*202issued order bills of lading was delivered by it to ,one who, as it knew, did not have the bills of lading, and this misdelivery of the goods made the petitioner an intentional wrongdoer as to the holders of the bills, the respondents whom it now seeks to compel to interplead. This it cannot do.

A complainant cannot have an order that defendants interplead, when one important question to be tried is whether by reason of his own act he has rendered himself liable to each of them. Desborough v. Harris, 5 DeG., M. & G. 439; Cochrance v. O’Brien, 8 Ir. Eq. 241; National Life Insurance Co. v. Pingrey, 141 Mass. 411, 6 N. E. 93. And in the actions pending the act complained of is the alleged conversion of the goods by the steamship company, through its intentional misdelivery of them, thereby incurring liability to the defendants herein as holders of the bills of lading.

[3] A bill of interpleader ordinarily supposes that the plaintiff is the mere holder of a stake, which is equally contested by the other parties, and as to which the plaintiff stands wholly indifferent between them.

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Bluebook (online)
277 F. 196, 1921 U.S. App. LEXIS 1999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mallory-s-s-co-v-thalheim-ca2-1921.