Middleditch v. Kalanianaole

18 Haw. 272, 1907 Haw. LEXIS 30
CourtHawaii Supreme Court
DecidedMarch 11, 1907
StatusPublished
Cited by9 cases

This text of 18 Haw. 272 (Middleditch v. Kalanianaole) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middleditch v. Kalanianaole, 18 Haw. 272, 1907 Haw. LEXIS 30 (haw 1907).

Opinion

OPINION OP THE COURT BY

FREAR, C.J..

This is a bill in equity by the trustee in bankruptcy of a corporation to enforce the payment of a note given to that corporation by the defendant Kalanianaole on September 8, 1902, for $518 payable six months thereafter with interest at 7 per cent, and to meanwhile have held and ultimately applied to the payment of such decree as might be obtained on the note certain shares of stock held by the said defendant in the defendant corporation, the Kapiolani Estate, Ltd. The circuit judge held that equity was without jurisdiction and dismissed the bill. The plaintiff appealed.

[273]*273It is not alleged that judgment- at law bas been obtained on the note or that execution has been issued and returned unsatisfied. It is sought to obtain a decree directly in equity upon the note and then to have applied towards its payment the stock in question. It -is conceded that this cannot be done under the general rules of equity relating to creditors’ bills, but it is contended that it may be done as a special statutory right under the equity act of 1878 (Ch. 15), now embodied in the Revised Laws (Oh. 121), which was taken from the Massachusetts statutes (Mass. Gen’l. Sts., c. 113.) It is further contended that the statute must be thus construed here because it was so construed in the state of its origin, as shown by Lord v. Harte, 118 Mass. 271, and the earlier cases there cited, — under the rule that when a statute is adopted from another jurisdiction the construction placed upon it by the courts of that jurisdiction prior to such adoption should also be adopted.

The statute (R. L., Sec. 1834) confers upon circuit judges equity jurisdiction in all cases therein mentioned “when the parties have not a plain, adequate and complete remedy at the common law,” and mentions among other classes of cases “bills by creditors to reach and apply in payment of a debt, any projjerty, right, title or interest, legal or equitable of a debtor, within this Territory, which cannot be come at to be attached or taken on execution in a suit at law, against such debtor.” Although corporation stock may now “be come at to be attached”' in an action at law (L., 1905, Act 84, Sec. 9, Subd. 3), neither-it nor any other property can be reached by attachment except under certain conditions which must be alleged under oath (Id., Sec. 3), which apparently cannot be done in the present case.. The question then presents itself whether judgment at law and return of execution unsatisfied are prerequisites to the bringing of a creditors’ bill under this statute as it is in equity in the absence of statute.

The first departure in Massachusetts from the application of the ordinary equity principles relating to creditors’ bills in the construction of this statute was made (in Silloway v. Colum[274]*274bia Ins. Co., 8 Gray 199) at a time when this particular provision of the statute as original!y enacted there (St. of 1851, c. 206) differed to some extent from the form in which it appeared when it was adopted in Hawaii, but perhaps that is unimportant. This court, however, has. taken a very different view of the statute as a whole, ever since its adoption, from the' view taken of it by the supreme judicial court of Massachusetts. There the statute is regarded as a grant of additional’ powers of an equitable nature to courts of law and was construed without much regard to the rules of general equity jurisdiction established in English practice. Here, on the other hand, it has been treated merely as declaratory, as far as it goes, of the jurisdiction already possessed by judges sitting in chambers as distinct courts of equity, who in that capacity previously possessed full equity jurisdiction as established in English practice. See Hawaiian Com. & Sug. Co. v. Waikapu Sug. Co., 8 Haw. 449; Dole v. Gear, 14 Haw. 554, 560. In the earlier of these cases, for instance, the court said: “The statute of 1878 has not enlarged the equity jurisdiction of the justices of the supreme court. They had full equity powers conferred upon them by section 847. The statute of 1878 makes clear many subjects of equity jurisdiction which, without the statute, might be disputed.” Again, the plaintiff concedes that the defendant is entitled to a jury trial of the claim upon the note, but contends that a jury trial may be had in equity and that in a case like the-present, in which the claim is legal, the verdict of the jury may properly be regarded as binding upon the judge and not merely advisory as in other cases. But, while a jury trial might be had in a case of this kind in Massachusetts in the law courts to which the statute granted additional powers of an equitable nature, it could not be had before our circuit judges sitting in equity. It would be contrary to all precedent as well as the express and implied provisions of our statutes relating to circuit judges at chambers. As stated in the case just quoted from, “the jurisdiction in equity thus conferred is of necessity ‘in chambers/ There is no jury impaneled to try the issues of [275]*275fact.” In Byrne v. Allen, 10 Haw. 668, 670, the court, after saying that the bill was a creditors’-bill provided for .under the act of 1878, and that jurisdiction of such bills previouslv existed under general equity powers, continued: “Now, in a creditor’s bill the debt must be established by some judicial proceeding, and it must be generally shown that legal means for its collection have been exhausted,” — although, as was also stated, these requisites were alleged in the bill and so the statement was not necessary to the decision. Thus, there is at least much reason, based on Hawaiian decisions, statutes, practice and conditions, for declining to follow the construction placed by the Massachusetts court upon this provision of the statute. There is, however, another reason why this bill cannot be maintained and that without departing from the Massachusetts construction.

It is not alleged that the defendant has no other property within the Territory subject to execution out of which the debt may be collected. The circuit judge authorized air amendment of this nature to be made .provided the bill should be resworn by the plaintiff, but apparently the latter was unwilling to swear to such an allegation. The statute expressly provides that jurisdiction in equity shall attach in the enumerated classes of cases only “when the parties have not a plain, adequate and complete remedy at the common law.” The reason why an ordinary creditors’ bill does not lie until judgment has been obtained at law and execution returned unsatisfied is not solely that the legal rights may be determined in the appropriate tribunal, that is, in a court of common law, but also that there may be proper proof that the defendant has no property which can be reached by execution at law. Therefore, even if he could bring the bill without first obtaining judgment at law and without special proof by return of execution unsatisfied to show a want of property which could be reached, still he is not excused from showing such want of property in some way and must do so in order to show that he has not an adequate, plain and complete remedy at law. There is nothing in the Massa-[276]*276chu setts cases excusing him from this requirement. On the contrary it seems to have been taken for granted there that the plaintiff must show in some way in his bill that there is not other property which may be reached by attachment or execution out of which the claim may be satisfied.

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Bluebook (online)
18 Haw. 272, 1907 Haw. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middleditch-v-kalanianaole-haw-1907.