McDougald v. Dougherty

11 Ga. 570
CourtSupreme Court of Georgia
DecidedJuly 15, 1852
DocketNo. 67
StatusPublished
Cited by18 cases

This text of 11 Ga. 570 (McDougald v. Dougherty) 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
McDougald v. Dougherty, 11 Ga. 570 (Ga. 1852).

Opinion

By the Court.

Lumpkin, J.

delivering the opinion.

William Dougheriy, in behalf of himself and other creditors of Daniel McDougald, deceased, filed his bill in Equity, in the Superior Court of Muscogee County, against Seaborn Jones, Ann E. McDougald, Alexander McDougald, and Duncan Mc-Dougald, returnable to the May Term, 1851, of said Court. The bill alleged, amongst other things, the execution and delivery of the deed of trust, by the said Daniel McDougald in his lifetime, to the said Seaborn Jones and one Robert B. Alexander, for the benefit of his said creditors; the acceptance thereof by the said trustees, and the subsequent death of Alexander, and prayed for the removal of Jones on account of his misconduct and refusal to perform said trust, the substitution of another trustee in his stead, and the appointment of a receiver in the meantime, to take charge of, preserve and manage, the trust property.

On the 9th of April, 1851, on the hearing of complainant’s application, one Adolphus S. Rutherford was, by the order of the Court, appointed receiver, being required before entering on his duties as such, to enter into bond with good security, payable to the Governor of the State, in the sum of ten thousand dollars, for his good conduct.

A motion was made, that the order appointing Adolphus S. Rutherford receiver, be revoked and rescinded, on a great variety of grounds, to wit: Because there was never any legal execution and delivery of the deed of trust; that no creditor ever accepted the appointment} and the provisions thereof; that the [585]*585grantor retained the deed, together with the property and the titles to the same, in his own possession, and previous to his death destroyed the conveyance ; that Mrs. Ann E. McDougald tendered to the complainant, Dougherty, the sum of $1,300, an amount sufficient to pay off and discharge the whole of his debt, principal, interest and cost; that the receiver was appointed without notice or the service of the bill upon any of the defendants, except Jones; that Rutherford, at the time of his appointment, was Deputy Sheriff, and is now acting Sheriff of Muscogee County; and that his duties as receiver and Sheriff, are, or may be, in conflict with each other; that the deed of assignment, even if duly executed, is void ; that there is in the hands of the administratrix of Daniel McDougald, assets ample to pay complainant’s debt; and besides, there are other persons liable and bound for the same, who are entirely solvent and responsible, and out of whom the demand might be collected; that the bill, although nominally a creditor’s bill, is alone the bill of the complainant Dougherty, and when the amount due hirn is paid or tendered it is the right of the defendants, to have the order appointing a receiver annulled; that the security required of the receiver, is too small — is not payable to the proper party— is illegal and improper in its condition, and is in other respects void; that the whole proceedings in the appointment of receiver, and the subsequent action in relation thereto, are irregu-. lar, informal, and unauthorized by the rules of practice of a Court of Equity, or by Equity or Law ; that because the answer of the defendant fully swears oft all the Equity contained in the bill, and because the said defendant, Duncan McDougald, has again tendered, and now before the Chancellor tenders and offers to pay said complainant, the entire amount of principal, interest, and cost due on said debt, and cost of the pending suit, namely, #1,300.

I shall not attempt to examine every point made in this heavy record, which we have scrutinized with great care and attention, but shall endeavor merely to touch upon the main questions which it presents.

[1.] Counsel for the plaintiffs in error have totally iqipappre[586]*586bended the nature of this bill. It is not a bill of quia timet, nor in the nature of such a proceeding.

[2.] A creditor has two resources for paying his debts ; either to pursue his debtor personally in his lifetime, or his estate since his death; or to ask the aid of a Court of Equity, to enforce a trust which the debtor had created for his benefit, in common with the other creditors. He resorts to the latter course, and he is clearly entitled to the assistance of Chancery, to have the trust executed. Hence, in writing out the opinion delivered by the Court in this case, when it was up before, twelve months ago, I stated that the allegation in the bill, that there were other fi.fas. which would hinder or delay the creditor, if he attempted to proceed with his execution at Law, to enforce his judgment lien, was not the foundation of his equity; nor did it give to the Court its jurisdiction. That it was upon another and altogether different principle, namely: the application of one creditor in behalf of himself and all others, who choose to come in, to enforce the execution of a trust made for their benefit.

Neither is the appointment of a receiver, under such a bill, predicated necessarily, upon the apprehended loss of the debt. It would be sufficient to allege that the trustee appointed refused to perform the trust; and that of itself, would be ground enough to authorize the Court to appoint a receiver; and this simple, ■but true exposition of the nature and object of this proceeding, will strip it at once of many of the difficulties which have been thrown around it.

All the law points adjudicated by this Court, in this case, at this place in July, 1851, (10 Gen. Rep. 273,) stand affirmed, upon the facts which were then before us. For while we do not profess to be bound by the authority of our decisions, “ as firmly as the Pagan deities were supposed to be bound by the decrees of fate,” still we must be clearly convinced of their error, before we shall fee] it to be our duty to overrule them.

All the issues made by the answers, such as the denial of the delivery of the deed of trust, and its acceptance by the creditors; the allegation that the assignor kept the deed, and also, the property and titles to the same, in his possession, and before his [587]*587death revoked the deed by destroying it; that there is in the hands of the administratrix of Daniel McDougald, assets amply sufficient to pay complainant’s debt; and that there are other solvent persons bound for the same — are matters in pais, dependent on the proof; and conceding that the material facts stated in the bill, are flatly denied, ne'verthless, we should continue the receiver until the final hearing. •

Whether the security required of the receiver was sufficient, and Mr. Rutherford a suitable person to fill the office, are matters of discretion ; and having no evidence that the power thus entrusted to the Court, has been wantonly or injuriously exercised, we shall not undertake to control his judgment in these particulars.

[3.] It is objected that the whole proceedings, in the appointment of a receiver and the subsequent orders in relation thereto, were irregular. I would remark that these proceedings before a Master, are in the nature of an informal bill in Equity ; and supervisory Courts will not interfere, unless substantial errors or defects exist.

[4.] If any great right or public policy has been violated by the Master, relief will be afforded otherwise. Not much is left to the discretion of the Master.

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11 Ga. 570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdougald-v-dougherty-ga-1852.