Mordecai v. Stewart

37 Ga. 364
Supreme Court of Georgia·Decided December 15, 1867·Published·Cited by 18 cases

Opinions

Harris, J.

The plaintiff, Mordecai, had commenced a suit in the Superior Court of Sumter count, on a note made by Cutts as principal, with Stewart as security, and, at the same time, at law in the same Court, the plaintiff was proceeding to foreclose a mortgage on real property made by Stewart, the security, to further secure the note mentioned, when he thought proper to move, during term time, the discontinuance of both of his suits. After making a motion to that effect, and before [369]*369the Circuit Judge had made any decision thereon, the counsel of Cutts and Stewart alleged their desire to confer with their clients before any final action on the motion made, and it was, accordingly, not pressed by the counsel of Mordecai until the next morning. When called up, the Judge announced that since the motion was made, a bill of injunction had been presented to him by the counsel of Stewart, whereby it was sought to restrain the plaintiff from dismissing his suit, upon allegations of equities, which were cognizable in Chancery, and in which adequate relief could only be given, and that he had sanctioned, temporarily, said injunction. After this sanction the bill was amended by making Cutts a party defendant. A time being fixed to hear the motion then made for the dismissal of the bill and of the suits, they were heard, the Judge refusing to dismiss the bill, and also denying the original motion to dismiss the suits.

A reversal of the rulings of the Judge as stated, is the purpose of the bill of exceptions here.

1. I take it to be a principle universally recognized in both the English and American system of jurisprudence, that whenever any Court of competent jurisdiction has possession of a cause, it will be retained by the Court having possession to the exclusion of all other Courts.

2. The granting of the injunction at the instance of Stewart upon such a bill as was filed in this case was, in my opinion, a palpable violation of the rule stated. To withdraw the matters in controversy at law to a Court of equity, as the sanction of the injunction in this case did, can be justified on principle only by its being made clearly apparent that the defences of the defendants at law could not be made as fully there as in a Court of equity and adequate relief afforded. This involves, necessarily, an examination into the existing jurisdiction of the Superior Court as a Court of law, and the Superior Court as a Court of equity.

The plaintiff elected to prosecute his rights at law. This is a right given by the Code, and beyond the control of the Judge. Previously to this right of election being conferred if the cause of a plaintiff was of an equitable nature, on the [370]*370equity side of the Superior Court, and through the forms and pleadings usual in equity, redress could be had, there was no option; into equity he was compelled to go. This is not so now. He cannot rightfully be controlled under our present system by the will or opinions of the Judge. He may sue at law, and by proper allegations (and which are amendable at his will at all times,) so shape his case as to obtain the same relief or redress as can be had in a Court of equity; the judgment in the case to be moulded and framed as are verdicts and decrees on the equity side of our Superior Court.

This being the undoubted right of a plaintiff in Georgia, it follows that a defendant when sued at law, having an equitable defence, has a right to its assertion at law as fully as that given to a plaintiff. Virtually the Code invests the law side of the Court with concurrent jurisdiction with the equity side.

The innovation made upon our old system is a great one ; it has not taken away any jurisdiction of the equity side of the Superior Court, but it has very largely augmented that of the law side. It appears to me that if the Judges of the Superior- Courts shall carry into operation what I believe to be the legislative will, in good faith, uninfluenced by their predilections for the old usages in which they were educated and to which they have become attached by habit, the result will be the determination of all suits at law on equitable principles. The constitution having conferred on the Superior Courts the authority to issue writs of mandamus, sci. fa., prohibition and all other writs necessary for carrying its powers fully into effect, nothing it would seem is wanting to give efficiency to the law side of this Court in its remedial justice, clothed as it has been with the concurrent jurisdiction aforesaid. If this view of the great change in our system of Jurisprudence be correct — and that it is, I think is beyond the power of any intellect to controvert successfully by sound reasoning — the enquiry then presses on us for solution: What was in the case below to withdraw it from the jurisdiction which had possession of it, and to cause the litigation [371]*371thereafter between the parties to be had in a Court of Equity ?

To the suits at law of Mordecai, all the defences alleged by Stewart, the security, in his bill of injunction, could, I think, beyond the shadow of refutation, have been made fully at law. What were they ? That, in previous transactions between Cutts and Mordecai, Cutts had paid to Mordecai large sums of usurious interest, and that he (Stewart) asked the assistance of a Court of Equity to give him the right to sue for and recover such usurious interest, or to compel the amount of it to be credited by Mordecai on the note in suit.

3. Now the right to sue for and recover back usurious interest paid is, by a special statute of the State, conferred on the debtor who has paid it. I will not stop to discuss the design of this act, evidently originating in considering usury as odious and to be repressed by penalties — or whether what is in the nature of, if not actually a penalty, can be a matter of subrogation, but I will say that surely there can be no equity whatever in subrogating Stewart to the personal privilege given to Cutts to sue for and recover usurious interest paid by Cutts in other and long passed transactions and with which Stewart had not the slightest connexion — especially when, for Quits, his principal, he does not by his bill show that he ever paid a cent.

The mere fact that he is a security, and liable for Cutts to Mordecai, cannot raise an equity in his favor — nor will these facts together with that of the insolvency of Cutts. Actual loss is necessary, and to the extent of such actual (not apprehended) loss only, can a Court of Equity subrogate him as security to the statutory right of Cutts to recover back the usurious interest paid. If right in the principle stated, what other demonstration is needed to prove that Stewart’s bill, as to this matter, furnished no ground whatever for the interference of a Court of Equity.

4. Nor did the discovery sought furnish a proper ground for its interposition — as it is undeniable that as full a discovery can be had noto at law in Georgia, upon interrogatories or an examination of the parties on the witness stand [372]*372as by any answer to a bill for discovery. As little ground, as by the others, is furnished by the allegation in the bill that the mortgage held over the town property of Stewart in Americus clouds his title and prevents its sale at its value. Before there can be an equity in Stewart to have that cloud removed, it must appear plainly that the mortgage debt has been extinguished by payments.

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Mordecai v. Stewart, 37 Ga. 364 (Ga. 1867).

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