McCreery & Co. v. Berney National Bank

116 Ala. 224
CourtSupreme Court of Alabama
DecidedNovember 15, 1896
StatusPublished
Cited by12 cases

This text of 116 Ala. 224 (McCreery & Co. v. Berney National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCreery & Co. v. Berney National Bank, 116 Ala. 224 (Ala. 1896).

Opinion

BRICKELL, C. J.

This is an appeal from a decree sustaining a demurrer to a bill of complaint filed by appellants, creditors of B. Somers & Co., which seeks to have declared void a sale of personal property, which had been seized as the property of said B. Somers & Co. under a writ of'attachment sued out by the Berney National Bank, and sold under an order of the court, in advance of judgment, as “perishable property,” and purchased at the sale by the Berney National Bank ; and to have the latter declared a trustee of said property, or the proceeds thereof, and compelled to account as such. The property consisted of a stock of dry goods, of the alleged value of $15,000, a complete set of store fixtures, valued at $2,000, and a leasehold interest in the storeroom, valued at $1,500; all of which were bid in and purchased by the bank for the sum 'of $5,500.

A demurrer to a bill confesses only matters of fact which are well pleaded, and not conclusions or inferences of law or fact. When, therefore, fraud is averred in general terms, and no facts are alleged constituting the fraud, the court can not consider the averment in passing on the demurrer, for such averments are mere conclusions of the pleader. — Flewellyn v. Crane, 58 Ala. 629; Loucheim v. First Nat. Bank, 98 Ala. 524; Fort Payne Furnace Co. v. Fort Payne Coal & Iron Co., 96 Ala. 476; McDonald v. Pearson, 114 Ala. 630. Such are the allegations that the purpose of appellee in obtaining the order for the sale of said property was, “to buy it at a great sacrifice before other creditors could have an opportunity to bid at the sale,” and that “the sale was for the purpose of hindering, delaying and defrauding creditors of B. Somers & Co.”

Eliminating these averments, therefore, and dismissing them from consideration,, the only theory that can'be ofered in "support of the bill is, that the property ordered by the court to be sold was not “perishable” within the meaning of section 2958 of the Code of 1886 (Code of 1896, § [229]*229549), authorizing the court, on motion of either party, 'to order the sale, in advance of judgment, of perishable property which had been levied on; and therefore the court had no authority to order the sale, the order and sale thereunder were void fpr want of jurisdiction, and no title passed to the defendant* This theory would limit the power of the court to order the sale of only such property as contained in itself the elements of speedy decay, such as fruits, fish, fresh meats, etc., or such as, from its nature, could be said to be perishable without any evidence to prove the fact, and cannot be sustained without giving to our statutes regulating the. subject a construction so narrow as to defeat the manifest purpose intended to be accomplished by the Legislature in their enactment, jand to defeat also, in many instances, the purpose of the statutes authorizing the remedy by attachment. The purpose of the preliminary seizure of the property of a supposed debtor, before any judgment determining the fact or amount of indebtedness, is to conserve it for eventual execution after the lien created by the seizure shall have been perfected by judgment. But in many instances the nature of the property and the expense of keeping it to await the termination of the litigation, a period indefinite and often impossible of ascertainment, would render the remedy fruitless to the creditor, if the property should be kept in the form in which it was seized. The statutes authorizing the conversion into imperishable cash of property that would otherwise be destroyed, or would deteriorate greatly in value, if kept, were therefore adopted, and their manifest purpose was, as has heretofore been stated by this court, “as well to protect the attaching creditor and give him a fruitful remedy against his debtor, as to protect the debtor and prevent the sacrifice of his property without accomplishing the payment of his debt. Both the creditor and debtor have an equal interest in the sale of the property falling within the scope of the statute, as it pays the debt on the one side, and at the same time it deprives the other of his property. But for this law the debtor would often be deprived of his property, whilst the debt for which the attachment was issued would be left unpaid.” — Millard v. Hall, 24 Ala. 230. This purpose could not be effected in the great majority of cases, if the power' of the court to order the [230]*230sale, in advance of judgment, of property levied on should be limited to such property only as was in its nature perishable, containing in itself the elements of speedy decay; for this species of property constitutes but a small proportion of that which is usually levied on. The statute must be given a broader construction if the purpose of the Legislature is to be effectuated. In the case cited, the defendant in attachment brought an action of. detinue for the recovery of a slave which had been levied on, against the purchaser at a sale which the court had ordered in advance of judgment, on the ground that the propert}»'was perishable. It was contended that a slave was not perishable property within the meaning of the statute, and that the order of sale was, therefore, void for want of jurisdiction, and the sale vested no title in the purchaser. The statute then in force was very carefully considered for the purpose of determining what property the court had authority to order sold, and it was held that the power of the court under the statute was broad enough to authorize it to order the sale of any species of property that was subject to levy under a writ of attachment. Gibbons, J., delivering the opinion, said: “Giving to the statute this construction, it will be seen that its terms are quite comprehensive ; all that is necessary to be shown is, that the article levied on is likely to waste or be destroyed by keeping. It need not be shown that it will necessarily waste or be destroyed ; but if it be likely to waste or be destroyed, it may be sold — not one particular article, or one species of articles, but any estate attached.” p. 231. And again : “If it is shown that by keeping the article it will necessarily become, or is likely to become, worthless to the creditor, and by consequence to the debtor, then it is embraced by the statute. It matters not, in our opinion, what the subject matter is ; it may be cotton bales, live stock, hardware, provisions, or dry goods ; if by keeping them to the end of the litigation, they will prove, or be likely to prove, fruitless to the creditor, he may have them sold, on the order of the judge, according to the statute in such case made and provided.” p. 232. While the statute under which that case was decided was somewhat different in its. terms from the present statute, in that it used the words “likely to waste, or be destroyed by keeping,” [231]*231instead of the word “perishable,” the reasons given for the construction placed on that statute apply equally to the statute under consideration. Although section 2958 refers, in terms, only to property which is “perishable,” section 2959 makes it the duty of the sheriff, in vacation, to sell property levied on, if it be of “so perishable a nature that it will deteriorate greatly in value, or be destroyed, before the meeting of the court, or if the charge of keeping it be very great; ’ ’ and it cannot be doubted that the power of the court is as great and its . discretion as broad, under the one section, as the sheriff’s under the other.

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Bluebook (online)
116 Ala. 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccreery-co-v-berney-national-bank-ala-1896.