Norris, Caldwell & Co. v. Bean

17 W. Va. 655, 1881 W. Va. LEXIS 80
CourtWest Virginia Supreme Court
DecidedApril 30, 1881
StatusPublished
Cited by16 cases

This text of 17 W. Va. 655 (Norris, Caldwell & Co. v. Bean) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norris, Caldwell & Co. v. Bean, 17 W. Va. 655, 1881 W. Va. LEXIS 80 (W. Va. 1881).

Opinion

Green, President,

announced the opinion of the Court:

The first question presented by this record is, whether the necessary parties to this cause were before the circuit court to justify it in rendering a decree on its merits. It is a general rule in equity (subject however to many exceptions), that all persons.materially interested either legally or beneficially in the subject-matter of the suit ought to be made parties to it either as plaintiffs or defendants, so that there may be a decree, that shall bind them all, and full justice be done to all in the one suit. Caldwell v. Taggart et al., 4 Pet. 190; Hoxie v. Carr, 1 Summers 173; Carey v. Hoxey et al., 11 Ga. 648. But this general rule being established for the convenient administration of justice ought not to be adhered to in cases, in which consistently with practical convenience it is incapable of application. See Adair v. The New River Co., 11 Ves. 444; Good v. Blewitt, 13 Ves. 397; Wendell v. Vanrensellaer, 1 Johns. Chy. 349; West v. Rundle, 2 Mason 193, 194. This Court in such exceptional cases generally requires the bill to be filed not only on behalf of the plaintiff, but also on behalf of all other persons interested, who are not made formally parties, and thus they are in some sense made parties. West v. Rundle, 2 Mason 193, 194; Good v. Blewitt, 13 Ves. 397; Hendricks v. Robinson, 2 Johns. Chy. 296, 297.

One of the most frequent exceptions in practice to the general rule we have stated is, that the court permits a suit to be hrought by one person in behalf of himself and all other persons having a like interest as the plaintiff, when the persons, who answer that description of a like interest with the plaintiff, are very numerous dr can not easily be discovered or ascertained. Thus a creditor may maintain a suit on behalf of himself and all other [662]*662creditors of a deceased, debtor against his proper representatives for an account and application of his assets reai as well as personal in payment of their demands. May v. Selby, 1 You. & Coll, New R. 13-17.

In the case of Cockburn v. Thompson, 16 Ves. 327, Lord Eldon says: “ In the familiar cases of creditors suing on behalf of themselves and all others, whatan infinite number of valuable interests may be bound, in a sense, not absolutely; as where the court for convenience, dispenses with the presence of parties, the principle leads it by future arrangement to find out the means of giving them an opportunity in some shape of coming in. Upon questions of marshalling, when real estate is charged with debts, &c., the case may be sustained originally perhaps by persons having interests of the least value ; but certainly any person afterwards becomingin-terested would have his interest as much attended to, as if he had originally been a party. The court must always be open to questions upon the carriage of the cause, applications for rehearing, &e.; and I should upon principle find the means, if not supplied by precedent, of giving a creditor, coming in after the institution of the suit, the oportunity of supporting his interest better than the plaintiff could.”

The usual mode with us of affording a creditor in such a case an opportunity of defending and setting up his interest is, to refer the cause to a commissioner with directions to call all the creditors having claims or liens on the property to audit their claims before him, which call is to be made by a publication in the manner prescribed in a newspaper designated.

In Reynolds v. The Bank of the Valley of Virginia et al., 6 Gratt. 180, 181, the law is thus stated by Baldwin, Judge : The best general rule, perhaps, to be deduced from the authorities is, that all persons having material interests in the subjects, which are to be affected by the object of the suit, must be made parties to the bill either as plaintiffs or defendants. But there are various [663]*663classes of cases, to which the application of the rule would be attended with such delay, inconvenience and expense, as would be found intolerable in the tration of justice. Amongst these are suits brought by creditors against the representative of a deceased debtor, for the account of the assets of his estate and the application thereof to the payment of his debts. In such cases all the creditors have common, and at the same time distinct, interest in the subject and object of the suit; and a strict adherence to the general rule would require them all to be made parties to the bill. To avoid the necessity of this, and yet prevent the unjust and injurious consequences, which might otherwise ensue, a practice has grown up and is well established of making those who are not plaintiffs substantial instead of formal parties, by allowing a few or one only of the creditors to sue on behalf of himself and all the rest, and those so represented to come before a master, establish their demands, and participate in the relief.

This practice has been extended to arcasewhere a number of creditors are secured by a deed of trust. Story Eq. PI. 3ded. § 102, and the authorities cited. It has been some times asserted, that the practice is to be limited to cases, in which all the. creditors have a common interest in the object of the bill, and is not allowable to a mortgagee claiming priority of satisfaction; but the more recent authorities upon better reason establish the contrary doctrine; tor the bill being in behalf of all, ^hey are so far parties to the suit, that they have a right to appear, assert their several priorities, and contest those of others. Story Eq. PI. §§ 101, 102, 103, 76c and the authorities there cited.

After the passage of the Code of Virginia in 1849 and the insertion therein of §§ 6 and 9 of ch. 186, (see Code of 1860, pp. 770, 771; Code of ~W: Va., ch. 139, §§ 5 and 8, p. 661) whereby every judgment was made a lien on all of a debtor’s land, and such lien might be enforced in equity, the above mentioned practice was extended to [664]*664cases, where a judgment-debtor sought to enforce his lien against the lands of his living debtor. This extension was necessitated by the passage of these acts. One of the principle reasons we have seen for permitting one creditor of a decedent to bring such a suit for himself and all other creditors, to subject the assets real and personal of the decedent to the payment of his debts, without making them formal parties, though they had a direct interest in the suit, was, because the creditors of the decedent would necessarily be unknown to the plaintiff generally, and being an indefinite class, he could not well ascertain the persons composing this class; and as the entire class had an interest similar to, though not identical with, the plaintiff, he was permitted from the necessity of the case to sue on behalf of himself and the entire class, and was not required to make each member of the class a party defendant. To have required this of him would have been greatly to embarrass him in enforcing bis rights, and would have much retarded the administration of justice.”

Syiiabusi.

Very much of the same injustice to the judgment-creditor and the 'same embarrassment in the administration to justice, after the changes in the law were made in 1850, above referred to, would have arisen, if he in enforcing his lien against the lands of his judgment-debtor had.

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Bluebook (online)
17 W. Va. 655, 1881 W. Va. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norris-caldwell-co-v-bean-wva-1881.