Nance v. Gatlin Cannon

2 Tenn. App. 73, 1925 Tenn. App. LEXIS 95
CourtCourt of Appeals of Tennessee
DecidedNovember 30, 1925
StatusPublished

This text of 2 Tenn. App. 73 (Nance v. Gatlin Cannon) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nance v. Gatlin Cannon, 2 Tenn. App. 73, 1925 Tenn. App. LEXIS 95 (Tenn. Ct. App. 1925).

Opinion

OWEN, J.

Gatlin and Cannon, plaintiffs, secured a judgment against Georgie Nance on a note, before a Justice of the Peace, for pins 3/e pup ‘onpeA sp: jo ‘poqoppp Apradoud oqq. joj puoq Suraioo $195.30. There had been an attachment, which had been sustained. The property attached was a horse and buggy.. A replevy bond in the form of a check for $400 was executed, the check being payable to J. W. Ligón, Justice of the Peace, and which check was given by T. G. Rogers.

The attachment was sustained and the Justice of the Peace recited in his judgment that Georgie Nance having executed a forth-time one Glen Rogers deposited with the court a check in the sum of $400 in lieu of bond, and the defendant failing and refusing to bring said property into court at the time specified in said bond it was judged that the check be cashed by the Justice of the Peace, a sufficient amount of same to settle said judgment and cost be used, and return the remainder to said Rogers.

This judgment was rendered the 13th day of June, 1925, and from said judgment Georgie Nance prayed and was granted an appeal to the circuit court of Henry county, and perfected the same by giving a proper appeal bond conditioned and required by law, in the sum of $500, with T. G. Rogers and R. H. Hudson as sureties thereon.

On July 22, 1925, the cause came on to be heard before the Hon. T. E. Harwood, Judge of the circuit court for Henry county. When it appeared that Georgie Nance had no defense to the note sued upon further than that defendant Nance had filed a petition in bankruptcy in the U. S. Federal Court, and had been adjudged a bankrupt, that he had filed such petition since the judgment rendered by the Justice of the Peace and prior to July 22, 1925, and that said bankruptcy was still pending. Nance had not been discharged in bankruptcy. Thereupon the court proceeded to render a judgment against T. G. Rogers and R. H. Hudson on the appeal bond for $195.30 and the cost' of the cause, but no judgment was rendered against the defendant Georgie Nance owing to pendency of said bankruptcy proceedings,'

*75 It was further ordered that a copy of this order be furnished said sureties if desired to be filed by them in said bankruptcy proceedings in their demand upon payment of same. The sureties Hudson and Rogers filed a motion for a new trial. This was overruled and disallowed. They prayed and were granted appeal to this court, perfected the same and have assigned a proper bill of exceptions, and have assigned errors in this court, as follows:

“Error of the court in rendering judgment against said sureties on the appeal bond, and overruling their motion for a new trial, because the defendant had interposed a plea of bankruptcy pending less than four months after the institution of this suit; that the note sued on in this cause is provable in bankruptcy, and the plaintiff admitted in open court defendant’s plea of bankruptcy pending, to which action of the court in rendering judgment against defendant’s sureties on said appeal bond said sureties excepted at the time.”
“Error of the circuit court in rendering judgment against T. G. Rogers and R. H. Hudson, sureties on the appeal bond of defendant, and overruling their motion for a new trial, because the defendant prosecuted his suit successfully on appeal, no judgment could be rendered against him, and none can be rendered against his sureties. ’ ’

The only question to be solved is whether or not this proceeding in the circuit court should be stayed or continued until the final adjudication of the bankruptcy matter instituted by defendant Georgie Nance.

“It is provided in the Bankrupt Act of 1898, section 6T, subsection ‘f’:

“That all levies, judgments, attachments and other liens obtained through legal proceedings against a person who is insolvent at any time, within four months prior to the filing of a petition in bankruptcy against him, shall be deemed null and void in case he is adjudged a bankrupt, ’ ’ etc.

“Said Bankrupt Act, section 11, subsection ‘a,’ provided':

“ ‘A suit which is founded upon a claim from which a discharge would be a release, and which is pending against a person at the time of the filing of a petition against him, shall be stayed until after an adjudication or the dismissal of the petition; if such person is adjudged a bankrupt such action may be further stayed until twelve ¡months after the date of such adjudication, or if within that time such person applies for discharge, then until the question of such discharge is determined.’ ” Section 11, subsection ‘a/ Bankrupt Act, 1898.
“This provision of the Bankrupt Act, section 11, subsection ‘a,’ seems to be more direct to the protection of the bankrupt, to the end that he may not lose the benefit of his discharge. ’ ’ 2 Rem. Bankruptcy, sec. 2695.

*76 In Wolf v. Stix, 99 U. S., 1, which was a case originating in Memphis, Tennessee, we find the following language announced by the Supreme Court of the United States:

“The cases are numerous in which it has been held, and we believe correctly, that if one is bound as surety for another to pay any judgment that may be rendered in a specific action, if the judgment is defeated by the bankruptcy of the person for whom the obligation is assumed, the surety will be released. The obvious reason is that the event has not happened on which the liability of the surety was made to depend. Of this class of obligations are the ordinary bonds in attachment cases to dissolve an attachment, appeal bonds and the like.”

In Stull v. Beddeo, reported in 14 L. R. A. (N. S.), 509, a Massachusetts ease, the Supreme' Court of that state said:

“In Carpenter v. Turrell, 100 Mass., 450, and Hamilton v. Bryant, 114 Mass., 543 it was held that the discharge in bankruptcy of a principal in a bond given in an attachment case against him, was a bar to the further prosecution of the suit against him, and that therefore the sureties on his bond to secure the release of the property attached were released. After these decisions, by statutory .provisions in that state, the court was authorized to render a limited judgment, with perpetual stay of execution against the debtor in an attachment proceeding who had given bond more than four months prior to the commencement of bankruptcy proceedings, so that the sureties on his bond might not be discharged.”

“The weight of authority is, that where the liability of the surety on an appeal bond is not fixed prior to the discharge in bankruptcy of the principal, and on appeal the claim against the principal is heard de novo, if a discharge in bankruptcy operates as a bar to the rendering of a judgment against him on the appeal, his sureties on his appeal bond are released.” Martin v. Kilbourn, 12 Heisk., 331; Goyer v. Jones, 79 Miss., 253, 30 S., 651; Young v. Howe, (Ala.), 43 So., 448; Laffoon v. Kerner, 138 N. C., 281, 51 S. E. 654; Sigler v. Shelly, 15 Ohio, 471.

“In the case of Hill v. Harding, 107 U. S., 495, 27 L. Ed., 631, on the question of staying proceedings in both the federal and state courts, pending proceedings in bankruptcy, it is said:

“ ‘The terms of this enactment are as broad and peremptory as possible.

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Related

Wolf v. Stix
99 U.S. 1 (Supreme Court, 1879)
Bigelow v. Armes
108 U.S. 10 (Supreme Court, 1882)
Crook Horner Co. v. Gilpin
75 A. 1049 (Court of Appeals of Maryland, 1910)
Laffoon v. Kerner.
50 S.E. 654 (Supreme Court of North Carolina, 1905)
Bennett v. Southern Pine Co.
51 S.E. 654 (Supreme Court of Georgia, 1905)
Carpenter v. Turrell
100 Mass. 450 (Massachusetts Supreme Judicial Court, 1868)
Hamilton v. Bryant
114 Mass. 543 (Massachusetts Supreme Judicial Court, 1874)
Meyers v. Ruddock Orleans Cypress Co.
43 So. 448 (Supreme Court of Louisiana, 1907)
Goyer Co. v. Jones
79 Miss. 253 (Mississippi Supreme Court, 1901)

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Bluebook (online)
2 Tenn. App. 73, 1925 Tenn. App. LEXIS 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nance-v-gatlin-cannon-tennctapp-1925.