Morton v. Grafflin

68 Md. 545
CourtCourt of Appeals of Maryland
DecidedMarch 15, 1888
StatusPublished
Cited by27 cases

This text of 68 Md. 545 (Morton v. Grafflin) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morton v. Grafflin, 68 Md. 545 (Md. 1888).

Opinion

Irving, J.,

delivered the opinion of the Court.

This is an appeal from an order of the Circuit Court of Baltimore City, sustaining a demurrer to the appellant’s [554]*554bill in equity, and the decree afterwards dismissing the bill.

The appellant who is a resident of the city and State of New York, charges, that a certain Walter E. Lawton is indebted to him in the sum of $57,129.70; that Lawton prior to March 15th, 1887, was a resident of Spuvtin Duyvil of the State of New York, and is now at some place to the plaintiff unknown, but is not a resident of the State of Maryland, .nor within the jurisdiction of Maryland Courts. The bill further charges that the plaintiff has sued out of the Superior Court of Baltimore City, a writ of attachment against Lawton as a non-resident of Maryland for the debt alleged to be due him, and has caused it to be laid in the hands of John, C. Grafflin (the appellee,) as garnishee “of all the property, assets and money belonging to Walter E. Lawton;” and avers that the garnishee has in his hands “certain property belonging to the said Walter E. Lawton as follows, to wit: Upwards of four thousand shares of the capital stock of the Navassa Phosphate Company, and upwards of six hundred shares of the Rasin Fertilizer Company, together with other shares of the capital stock of other corporations, and other personal property;” which personal property the plaintiff avers and charges that John C. Grafflin the appellee claims to hold as security for an original debt on bond for one hundred and fifty thousand dollars, which with interest accrued he claims now to amount to over one hundred and sixty thousand dollars. The plaintiff further charges, that the bond of Lawton to Grafflin was executed on the fifth of July, 1884, and was made payable three years after date, with interest from date ; and that on the same day a mortgage on certain real estate in Bergen County, New Jersey, was executed and delivered to Grafflin to secure the aforesaid debt; and that this mortgage to Grafflin was not recorded in the office of the clerk of the County of Bergen in the State of New Jersey, until the 18th of [555]*555March, 1887, but that Grafflin claims this mortgage to be a valid and subsisting lien on the property it mortgages; and that his claim is wholly unsatisfied. The bill then charges that the land embraced in the mortgage is more than sufficient to pay the amount, if any, that may be due under the said mortgage, and all costs incurred in foreclosing the said mortgage.” The bill also states, that Lawton has disposed of the equity of redemption in the New Jersey property so mortgaged to Grafflin, and rhat he has received no security for his debt beyond the promissory notes mentioned in the attachment proceedings, and that there is no other property he could have levied upon under the attachment.

It then prays, 1st, for an injunction restraining the garnishee from disposing of any of the assets in his hands ; 2ndly, for a receiver to take possession of the assets and property in Grafflin’s hands, and to hold the same subject to the order of the Court; and thirdly that Grafflin be required to bring into Court the shares of the stock of the several corporations which he has in his hands, and other property, that the same may be held by the Court until Grafflin shall have proved what balance is due him, if any, or that he may he ordered by the Court to foreclose his mortgage in New Jersey, “or elect to release the other securities held by him ; ” and that the securities attached may be held until such mortgage proceedings are had and account of his debt and balance due him is taken, or until he makes the election asked for ; and 4thly, for “such other and further relief as in equity his case may require.” Order of publication is prayed against Walter E. Lawton, and subpoena for John O. Grafflin. An order to show cause was issued Grafflin. who appeared and demurred to the bill.

The demurrer is to the whole bill, and for grounds of demurrer the appellee insists that such case is not made by the bill as entitles the plaintiff to the relief sought, and that he has complete remedy at law.

[556]*556It is hardly necessary, at this day, to cite authorities for the statement that only facts well pleaded are admitted by the demurrer. Miller vs. Balto. County Marble Company, 52 Md., 643. As this was a bill for injunction and receiver, it was imperatively necessary, that the written documents upon which the relief was prayed should have accompanied the bill, or proper excuse be made for their non-production. No copy of the New Jersey mortgage was filed with the bill, arid no evidence of the plaintiff’s demand against Lawton. It is incidentally stated', that there are promissory notes for the indebtedness which are filed in the attachment proceedings; but the attachment proceedings, (or copies of them,) are not made part of the bill, nor are the proceedings so referred to as to make them part of the bill. Reliance, in this particular, is placed on the Act of 1884, ch. 23, as applicable to Baltimore City cases. This Act relieves from the necessity of producing a transcript of the record of any other Baltimore City Court in evidence, and allows the production of the docket and record hooks as evidence, and gives them the same effect as evidence as transcripts under seal. As-evidence such records are undoubtedly admissible; but in a bill for injunction, such charges should be made as showed an effectual levy to have been made, and at least the proceedings should' have been so referred to as to-make them a part of the bill, and enable them to be easily found. Whilst these defects would justify refusal of preliminary injunction, they and the want, of other ’parties, could be cured by amendment, and if when amended in these particulars a proper case would have been made for the intervention of a Court of equity, it would have been proper to retain the bill and allow the amendments to be made.

The theory of the appellant is, that by his attachment and levy thereunder, he has acquired a lien on the stocks of his debtor, in the hands of the garnishee, subject to the [557]*557garnishee’s prior lien, which is set out; hut that he cannot make his lien available without the aid of a Court of equity, lie claims that the principle established in Alcock vs. Harris, 10 G. & J., 226, applies. He relies on 11th sec. of Art. 10 of the Code, which says “ any kind of property or credits of the defendant in the plaintiff’s own hands, or in the hands of any one else, may be attached,” in connection with the Act of 1868, ch. 471, sec. 198, which will be considered presently.

Section 199, of 1868, directs how such attachment shall be executed, and requires the sheriff to leave with the president or other chief officer of' the corporation, or leave at their place of business, a statement in writing of this levy on the stock of the defendant, and the purpose for which it is made, and the officer making the service is required to return a copy of such notice with his writ.

Upon such notice the corporation is required upon demand of the sheriff to furnish him with the number of the shares and' amount of stock standing in the defendant’s name on the books of the corporation; and the refusal of the corporation to comply is made punishable. The corporations being the debtors for the stock standing in stockholders’ names, the law provides for their notification. They are in fact intended to be parties defendant.

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Bluebook (online)
68 Md. 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morton-v-grafflin-md-1888.