Nelson v. Van Gazelle Valve Manufacturing Co.

45 N.J. Eq. 594
CourtNew Jersey Court of Chancery
DecidedMay 15, 1889
StatusPublished
Cited by2 cases

This text of 45 N.J. Eq. 594 (Nelson v. Van Gazelle Valve Manufacturing Co.) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. Van Gazelle Valve Manufacturing Co., 45 N.J. Eq. 594 (N.J. Ct. App. 1889).

Opinion

Pitney, V. C.

The object of the motion is to test the validity of the liens of "certain executions, in the hands of a constable, upon certain chattels in the possession of the official receiver of the insolvent defendant corporation.

The bill alleging the insolvency, and praying a decree to that -effect and the appointment of a receiver, was filed early in April, 1889, and an order to show cause was made upon it, returnable -on the 1st day of May, and, upon that order, and on that day, the decree of insolvency was made and the receiver appointed. In the meantime, judgments were recovered in a justice’s court against the insolvent corporation, and executions issued thereon and delivered to the constable, who attempted to make a levy by virtue of them. What he did was this: He went to the factory of the defendant corporation and found it closed and. locked up, and he did not break in or otherwise gain access to the building, but succeeded in looking through a broken glass and getting ■a partial view of the chattels in question, which were within, and upon that view alone he made an incomplete inventory and what he claims to be a good levy.

But I think this attempt on the part of the constable did not result in a valid levy. The goods were in the building, access to them was barred by locked doors, and they were not within his actual reach or control, and he did not get such a view as to enable him to make an accurate and reliable inventory. He was warranted in law in breaking into the factory and making an actual seizure and adequate inventory, but he did not do so, and the validity of his levy must depend upon what he actually did, and not upon what he had the power and the right to do. At the time he went there to make the levy, the defendant company had suspended business for want of funds, and, by the approbation of its officers, the complainant had applied to the court for the proper statutory relief, and the defendant had shut up the factory purposely and with a view to protect the property from levy, so that it might be equally divided among the creditors of the corporation. This conduct on the part of the corporation [596]*596and its officers was in strict accordance with the letter and the-policy of the act respecting corporations.

The constable, then, cannot successfully contend that he made-what is called a constructive levy by the consent of the defendant corporation, leaving the goods in its possession as his bailee. What he did was without the consent and against the will of the-owner of the goods, and the question is, whether, under the circumstances, the mere inventory, made by the officer, of goods not within his control or reach, and without the knowledge or assent of the defendant owner, will constitute a valid levy.

Our courts have gone farther than those of any other State in sustaining levies, but I find no case in our'reports which seems-to me to go far enough to validate the levy attempted to be made-in this case. Chief-Justice Green reviews all the earlier cases in Caldwell v. Fifield, 4 Zab. 150, and justifies the rule deduced from them (which is confessedly a departure from the common-law), on the ground that the delivery of an inventory by the defendant to the officer of goods in the former’s possession renders him a bailee of the officer, and “ the possession of the defendant the possession of the officer.” Under such circumstances he' holds that the levy cannot be invalidated or the constructive possession of the sheriff drawn into question by reason of his not seeing the goods at the time 'of making the inventory. He adds (p. 161): “It is unnecessary now to consider the question whether an inventory made by the officer of goods not within his view or under his control, without the knowledge or assent of the defendant, be a valid levy.” Thus it appears that he expressly reserved the very question now under consideration.

The levy in Dean v. Thatcher, 3 Vr. 470, was upheld upon the principle laid down in Caldwell v. Fifield, the defendant having voluntarily furnished the inventory of the goods to the-sheriff.

In some of the cases it is said, by the judge delivering the-opinion, that the officer must have the goods “ within his view or under his control,” and it is argued that, by the use of that alternative expression, the court intended to lay down the canon, that a mere view of the goods, without control, is sufficient. But [597]*597I do not think that was the meaning of the learned judges. I do not think, for instance, that they meant to say that goods stored behind a strong iron grating or thick plate glass, which permitted a view, but effectually barred access, could be successfully levied upon, so as to create a special property in the constable, without gaining access to them by breaking through the barrier. Justice Drake, in Lloyd v. Wychoff, 6 Hal. 218, hereafter to be cited, holds that the constable must both see and have the goods withiu his control.

I think that the true rule is, that, in the absence of the consent or agreement of the defendant, an officer, in order to make a valid levy on chattels, must do some act in relation to them, in the way of taking actual possession or asserting dominion over them, which, in the absence of the writ in his hands, would make him a trespasser. Haggerty v. Wilber, 16 Johns. 287; Beekman v. Lansing, 3 Wend. 446; Connah v. Hale, 23 Wend. 462; Roth v. Wells, 29 N. Y. 471.

Applying that test here, I think the levy fails as a levy, and is inefficient to vest a special property in the constable.

The sixty-seventh section of the Justices’ Court act (Rev. p. 552), provides that the constable shall

“Take an inventory, in writing, of such and so much of the property of the defendant as he means and intends to levy upon ; which inventory and levy, and the actual time of making the same, shall be annexed to the said execution, and signed by the said constable, under his oath of office, and shall, at all times, be received as evidence of the levy and of the time of making the same, as contemplated by this act, and that the property so levied upon shall be bound from the time of such levy and not before.”

It is argued by counsel for the execution creditors, from the language above quoted, that the goods are bound from the date of making an inventory, with an intention to levy upon and appropriate them to the satisfaction of the writ, ánd that the making of the inventory by the constable, without a levy, actual or constructive, corresponds, in this respect, with the delivery of the writ from a court of record to the sheriff, which our statute Axes as the time from which the goods of the defendant are [598]*598bound. Rev. p. 392. And it is further argued that, if the goods-are once bound by the writ, an inchoate lien exists in favor of the execution creditor which this court is bound to respect and-, give effect to, although the constable never actually made such a. levy as vested the special property in the goods in him and enabled him to maintain trover for them.

This argument is not without plausibility and even strength ;.. and I am of the opinion that, if the legislature intended to make the mere inventory without levy, actual or constructive, the basis - of the binding of the goods, then this court would be bound, upon the principles acted upon in Richards v. Morris Canal Co., Spen. 136; James v.

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Bluebook (online)
45 N.J. Eq. 594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-van-gazelle-valve-manufacturing-co-njch-1889.