McCoy v. . Justice

155 S.E. 452, 199 N.C. 602, 1930 N.C. LEXIS 194
CourtSupreme Court of North Carolina
DecidedOctober 22, 1930
StatusPublished
Cited by27 cases

This text of 155 S.E. 452 (McCoy v. . Justice) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCoy v. . Justice, 155 S.E. 452, 199 N.C. 602, 1930 N.C. LEXIS 194 (N.C. 1930).

Opinion

Adams, J.

This is a suit in equity brought by the plaintiff to restrain the issuance of an execution and to set aside a judgment recovered against him by Perry Hyatt, now deceased, in an action at law. The grounds upon which relief is sought are an alleged conspiracy between Perry Hyatt and his wife, aided by his brothers and sisters, who are defendants and who claim to be distributees of his estate, fraudulently to procure the judgment by perjured testimony and the creation of feigned conditions which are specifically set forth in the complaint. For this reason resort is had to the equitable jurisdiction of the court on the principle that the plaintiff’s wrongs can be redressed and his rights *605 enforced only by such remedial justice as is administered exclusively in courts of equity. It is true that if the remedy afforded at law would he incomplete or inadequate equity will always entertain jurisdiction to give relief in a case of fraud. But fraud is a generic term. While several definitions of the word have been given, it has often been said that no definition can be framed which will he all-inclusive, and that each case must he determined on its own facts. The principle is directly applicable in the present case.

In a discussion of the conditions under which a judgment obtained by fraud may be vacated by a court of equity Freeman in his work on “Judgments,” observing the distinction between intrinsic and extrinsic fraud, remarks that “extrinsic or collateral fraud operates not upon matters pertaining to the judgment itself, but relates to the ipanner in which it is procured.” He illustrates the definition by the following excerpt from “the oft-quoted statement of Justice Miller” in United States v. Throckmorton, 98 U. S., 61, 25 Law Ed., 93: “Where the unsuccessful party has been prevented from exhibiting fully his case, by fraud or deception practiced on him by his opponent, as by keeping him away from court, a false promise of compromise; or where the defendant never had knowledge of the suit, being kept in ignorance by the acts of the plaintiff; or where an attorney fraudulently and without authority assumes to represent a party and connives at his defeat; or where the attorney regularly employed corruptly sells out his client’s interest to the other side — these and similar cases which show that there has never been a real contest in the trial or hearing of the case, are reasons for which a new suit may be sustained to set aside and annul the former judgment or decree and open the ease for a new and fair hearing.”

Freeman refers to perjury and false swearing as intrinsic fraud (sec. 1241), and says: “It must be borne in mind that it is not fraud in the cause of action, but fraud in its management, which entitles a party to relief. The fraud for which a judgment may be vacated or enjoined in equity must be in the procurement of the judgment. If the cause-of action is vitiated by fraud, this is a defense which must be interposed, and unless its interposition is prevented by fraud, it cannot be asserted against the judgment; Tor judgments are impeachable for those frauds only which are extrinsic to the merits of the case, and by which the court has been imposed upon or misled into a false judgment. They are not impeachable for frauds relating to the merits between the parties. All mistakes and errors must be corrected from within by motion for a new trial, or to reopen the judgment, or by appeal.’ The fraud must be in some matter other than the issue in controversy in the action. The rule that fraud, to be a ground for relief, must be extrinsic or collateral to the matter tried in the first action, is almost universally acquiesced *606 in. It is merely an application of the general principle that equity will not interfere simply to give a second opportunity to relitigate that which has already been fully litigated.” Freeman on Judgments (5 ed.), sec. 1233.

The objection to relitigation rests upon solid ground. As observed by Mr. Justice Miller: “If the court has been mistaken in the law, there is a remedy by writ of error. If the jury has been mistaken in the facts, there is the same remedy by motion for new trial. If there has been evidence discovered since' the trial, a motion for a new trial will give appropriate relief. But all these are parts of the same proceeding, relief is given in the same suit, and the party is not vexed by another suit for the same matter. So in a suit in chancery, on proper showing, a rehearing is granted. If the injury complained of is an erroneous decision, an appeal to a higher court gives opportunity to correct the .error. If new evidence is discovered after the decree has become final, a bill of review on that ground may be filed within the rules prescribed by law on that subject. Here again, these proceedings are all part of the same suit and the rule framed for the repose of society is not violated.”

The principle was concisely stated in Tovy v. Young, Prec. in Ch., 193, 24 Eng. Reports, 93, in which the Lord Keeper, dismissing a bill to set aside a judgment, said: “New matter may in some cases be ground for relief; but it must not be what was tried before; nor when it consists in swearing only, will I ever grant a new trial, unless it appears by deed or writing, or that a witness, on whose testimony the verdict was given, were convicted of perjury, or the jury attainted.”

This was followed by United Stakes v. Throckmorton, supra, in which the Supreme Court stated the principle that relief may be given to a party against whom a judgment has been rendered if the fraud practiced upon him prevented him from jiresenting all his case to the court, but that a judgment will not be set aside on perjured testimony or for any matter that was presented and considered in the judgment assailed. The decisions, it is said, established this doctrine: “The acts for which a court of equity will on account of fraud set aside or annul a judgment or decree, between the same parties, rendered by a court of competent jurisdiction, have relation to frauds extrinsic or collateral to the matter tried by the first court, and not to a fraud in the matter on which the decree was rendered.” It is undoubtedly true, said Freeman, that the authority of this case is still unshaken. Section 1233. It has become a precedent for a large number of later decisions.

The parties to an action must be prepared to meet and expose perjury, they know that a false claim can be supported in no other way, and that the object of the trial is to ascertain the truth. In Pico v. Cohn, *607 13 L. R. A. (Cal.), 336, it was Feld that perjured testimony procured by bribery on the part of tbe successful party is not ground for setting aside a final decree, although it is reasonably certain that the result of a new trial would be different. After remarking that the trial is a party’s opportunity for making the truth appear, the Court said: “If, unfortunately he fails, being overborne by perjured testimony, and if he likewise fails to show the injustice that has been done him, on motion for a. new trial, and the judgment is affirmed on appeal, he is without remedy.

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Bluebook (online)
155 S.E. 452, 199 N.C. 602, 1930 N.C. LEXIS 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccoy-v-justice-nc-1930.