Miller v. United States Casualty Co.

47 A. 509, 61 N.J. Eq. 110, 16 Dickinson 110, 1900 N.J. Ch. LEXIS 16
New Jersey Court of Chancery·Decided October 30, 1900·Published·Cited by 4 cases

Opinion

Emery, V. C.

(after statement of issues).

Complainant’s right of action, as disclosed by the bill and proofs, is a purely.legal right, and in a court of law depends for its establishment upon complainant’s proving three things—first, defendant’s contract to compensate him, according to the value of his work, if he secured business for defendant; second, that he secured or assisted in securing the business of the Kentucky company, and Hik’d, that this business was valuable to the defendant. Sufficient proof- of all of these three facts would be necessarjr to maintain his case at law. Defendant’s plea does not reach to a denial of the whole of complainant’s legal case, but to two of the facts or parts which constitute this case, viz., a denial that complainant secured the contract and that the contract was profitable. Both of these issues will be issues in the action at law to be brought. Had the plea been set down for hearing, my present view is that it must have been overruled, and mainly for the reason that the plea sets up as a bar to the discovery, in aid of the action at law, a denial which is a denial of [114] only one of the several grounds which together constitute the basis of the legal action, and does not go to the whole ground of action. At an early day it was laid down by Lord Thurlow, in the leading case of Hindman v. Taylor 2 Bro. Ch. C. 7; S. C., 2 Dick. 651, that a plea which set up matter which went to the whole cause of action, and was a legal bar to the action, was not a good plea to a bill for discovery only, as that would put the trial of the legal right in the court of equity. This decision has never been expressly overruled, but its soundness has been vigorously attacked, and later eases have undoubtedly qualified it, to the extent of allowing, in some -cases, a plea to a bill of discovery to set up a denial of complain.ant’s title or interest. The reason is that otherwise, by complainant’s false or unfounded claim of interest or title as the '.basis of either an existing or proposed action, he might have a ■discovery of transactions with which he had, in fact, no concern, and for the disclosure of which the false or unfounded ■claim was asserted for ulterior purposes. Wigr. Disc. *151f, &c., and cases cited; Story Eq. Pl. § 821. The cases, however, in which the pleas were sustained as denying complainant’s interest or title were either cases in which equitable relief as well as discovery was sought, e. g., denials of partnership on bill for account, and in which the issue raised by the plea was properly triable in equity, or cases in which the plea went to the whole issue triable at law, as the basis of the legal action. The late case of Robertson v. Lubbock, 4 Sim. 161, 180 (Vice-Chancellor Shadwell, 1881), cited in Wigr. Disc., supra, states the rule in cases like the present. The vice-chancellor says (at p. 180) : “If a right of action is founded upon a variety of circumstances put together, a plea which attempts to show that the action cannot be maintained by confessing and avoiding some of the circumstances and denying the rest, cannot be good, for the reason that it, in effect, takes to pieces all the several grounds which, put together, are asserted as the grounds upon which the action is maintainable, and by confessing and avoiding some and traversing others, it reduces the plaintiff to the necessity of proving in a court of equity, without a discovery, that he has a right to support that action.” In other words, the plaintiff in an action [115] at law has the right to the trial of the whole right of action or the whole bar set np, together and in a single court, and if a legal bar to the action is a good plea to the bill for discovery, the plea must extend to the whole right of action or to all the eircumsances which, together, constitute the right of action. Chancellor Walworth, in Sperry v. Miller, 2 Barb. Ch. 632 (1848), followed Hindman v. Taylor, and held it good law to its full scope, overruling a plea of payment of the legal claim as a bar to discovery. Our own decisions are silent upon the point, but the validity of a plea of legal bar to the action cannot be extended beyond the extent indicated in Robertson v. Lubbock, supra, and, under this rule, the defendant’s plea would probably have been overruled. The validity of the plea is not, however, a question directly in issue now, and it is only referred to because it has a bearing upon the question of the status of the case upon the entire record which is now presented for decision upon the proofs. Complainant, by replying to the plea, has, for the purposes of this suit, admitted its validity, and the question now to be determined is whether the defendant has established its plea by the proofs. The burden of doing this rests upon the defendant. 1 Dan. Ch. Pr. (6th Am. ed.) *698. And where a plea contains several distinct averments or allegations of fact, all of the allegations must be supported by the proofs or the plea will be overruled as false. Dows v. McMichael, 6 Paige 139, 144, cited and approved in Flagg v. Bonnel, 2 Stock. 82, 85. The reason is that in this court no repleader is awarded where a cause comes to hearing upon an immaterial issue joined on a plea, and' the court, therefore, never inquires as to the materiality of the allegations contained in the plea if the complainant admits the validity of the plea by replying to it. If the truth of the plea is established by the proofs, complainant’s bill must be dismissed, although the matters stated in the plea contain, in fact, no valid defence to the suit, and, on the other hand, if the defendant fails in proving the truth of his plea upon the hearing, the plea must be overruled as false, and the complainant will be entitled to a decree according to the ease stated by the bill. Dows v. McMichael, supra (at p. 144). And upon the hearing upon the plea the question therefore is as to the [116] truth of the several allegations in the plea, and if the truth of every distinct allegation is not established the plea must be overruled as false. Ibid. See also 1 Dan. Ch. Pr. (6th ed.) 695, 697.

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Miller v. United States Casualty Co., 47 A. 509, 61 N.J. Eq. 110, 16 Dickinson 110, 1900 N.J. Ch. LEXIS 16 (N.J. Ct. App. 1900).

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