Mendenhall v. Stovall

24 S.E.2d 795, 195 Ga. 492, 1943 Ga. LEXIS 534
CourtSupreme Court of Georgia
DecidedMarch 10, 1943
Docket14451.
StatusPublished
Cited by7 cases

This text of 24 S.E.2d 795 (Mendenhall v. Stovall) 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
Mendenhall v. Stovall, 24 S.E.2d 795, 195 Ga. 492, 1943 Ga. LEXIS 534 (Ga. 1943).

Opinion

Reid, Chief Justice.

The exceptions in this case are to a judgment entered on November 17, 1942, against the defendant Mendenhall for the sum of $325. It represented a reimbursement of attorneys’ fees expended by the South Side Atlanta Bank, which had intervened in the cause pending between two partners. The case has twice been to this court upon other issues. Mendenhall v. Stovall, 191 Ga. 452 (12 S. E. 2d, 589); Stovall v. Mendenhall, 192 Ga. 796 (16 S. E. 2d, 546). A detailed history of the litigation may be found in the report of those cases, and only so much of it will be mentioned as is necessary to a consideration of the one issue at hand.. Its last appearance here’ in the report of the *493 case cited above was upon a bill of exceptions to the final decree entered in the cause on May 81, 1941. At the time the litigation began the South Side Atlanta Bank was the holder of certain notes aggregating the principal sum of $1667, which had been signed by Mendenhall, the defendant, but which it was claimed represented obligations incurred for the benefit of the partnership. Pledged to secure the payment of these notes were certain open accounts payable to the partnership. On September 7, 1940, the holder of these notes filed its intervention in the cause, setting up the existence of such indebtedness, and asking for its payment. Subsequently two amendments were filed to the intervention. The plaintiff in the case contended that these open accounts were not lawfully transferred to the bank, since they were pledged to secure the individual indebtedness of the defendant whose contractual duty, it was contended, was to furnish from his own resources or credit the necessary financing for the partnership business. In the course of the litigation the defendant was required to deposit certain funds of the partnership into the registry of the court, and also to give a surety bond for the protection of the plaintiff and to abide the judgment of the court in respect to partnership funds which were later allowed to be withdrawn by the defendant. An auditor was appointed, and his findings with reference to the claim of the intervenor, which were later approved by the court, were to the general effect that while the intervenor did not have legal title to the accounts pledged as collateral, nevertheless the bank had extended credit in good faith and was entitled to have its indebtedness paid out of funds of the partnership coming under the equitable administration. The notes which the intervening bank held contained the usual provision in respect to the liability of the maker for attorneys’ fees in case there should be a default and collection by law should be necessary. On May 81, 1941, the final decree mentioned above, and .which was reviewed in 192 Ga. 796, recited that the notes of the intervening bank, principal and interest, had been paid in full. This decree taxed the costs of the proceeding against the plaintiff, and recited that the costs incurred had already been paid out of funds in court. After finally adjudicating the rights of the parties, it further recited that “jurisdiction is retained for the purpose of any purely administrative order.” This decree was affirmed by decision of this court entered on Sep *494 tember 9, 1941. On November 15, 1941, the following order was entered: “This case having been concluded by a judgment of the Supreme Court, affirming the final decree rendered therein, and it being made to appear to the court that the defendant, C. M. Mendenhall, has complied with all the provisions of the final decree with reference to the payments from the funds previously deposited in the clerk’s office, and the judgment having been in favor of the defendant, the defendant, C. M. Mendenhall, and his surety, the Aetna Casualty & Surety Company, are hereby exonerated and discharged on the two bonds filed in this case under order of the court.” On October 20, 1942, South Side Atlanta Bank, through its counsel, filed a motion in the superior court, styling, it in the same case, setting up that in prosecuting its rights in respect to the notes held by it, and in securing their pajnnent by means of the intervention referred to, the intervenor had incurred as an expense attorneys’ fees in the sum of $433.51, '“which should be refunded to it by the pledgor, C. M. Mendenhall.” The defendant, in answer to a rule nisi issued upon this motion, objected to the allowance against him of any sum in reimbursement to intervenor. The judge (apparently upon a review of the record in the case, since no evidence was introduced) entered a judgment in favor of the intervening bank and against the defendant Mendenhall for the sum of $325.

1. Where equity has acquired jurisdiction for any purpose, it will retain jurisdiction to give full and complete relief, whether legal or equitable, as to all purposes relating to the subject-matter. Mays v. Taylor, 7 Ga. 238; Walker v. Morris, 14 Ga. 323 (3); McDonald v. Davis, 43 Ga. 356 (2); Kidd v. Finch, 188 Ga. 492, 496 (4 S. E. 2d, 187); McCord v. Walton, 192 Ga. 279 (3) (14 S. E. 2d, 723). And in proper cases of receivership where funds are being administered for the benefit of parties, as well as creditors who may intervene, equity has power to assess as a part of the costs and expenses of administration attorneys’ fees. Price v. Cutts, 29 Ga. 142 (3) (74 Am. D. 52); Grayling Realty Corporation v. Lawson, 179 Ga. 188 (175 S. E. 453); Keating v. Fuller, 151 Ga. 66 (105 S. E. 844). It will be observed that it is not upon the latter principle that the intervenor relies, since it is not contended that the bank or its counsel added anything to the common fund for distribution or aided the general administration for *495 creditors or other parties. The theory relied upon is that the bank was entitled to reimbursement for expenses incurred in the “protection of its collateral.” See 40 A. L. R. 259; 49 C. J. 945, § 91.

It is also observed in the present case that the object of the intervenor in seeking reimbursement was not to reopen or review the final decree in which costs were assessed and in which the rights of the intervenor as a creditor were adjudicated. The intervenor had presented to the court its notes evidencing the indebtedness and its collateral. The decree itself recites the payment of the claim which included principal -and interest. The record does not show whether all the notes were in default. No claim was made for attorneys’ fees at the time the principal and interest of the indebtedness was claimed, although the whole amount of such fees had already been incurred, unless some portion was due for services in connection with the. bill of exceptions brought to this court where the final decree was affirmed. The decree purported to be final in all respects. Having recited the payment in full of intervenor’s indebtedness, it hardly seems that any further action in reference to its claims or indebtedness was in contemplation of the court.

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Bluebook (online)
24 S.E.2d 795, 195 Ga. 492, 1943 Ga. LEXIS 534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mendenhall-v-stovall-ga-1943.