O'Neil v. Glover

71 Mass. 144
CourtMassachusetts Supreme Judicial Court
DecidedOctober 15, 1855
StatusPublished

This text of 71 Mass. 144 (O'Neil v. Glover) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Neil v. Glover, 71 Mass. 144 (Mass. 1855).

Opinion

Thomas, J.

This is a petition brought under the St. of 1838, c. 163, § 18, giving this court jurisdiction in equity in cases arising under the insolvent laws. The object of the petition is to enjoin the commissioner of insolvency from further proceeding in the cause, and to vacate the acts already done.

[156]*156Involuntary proceedings in insolvency w ere , commenced against the present petitioner, in the name of Thomas Glover, claiming to be a creditor of O’Neil to the amount of one hundred dollars and upwards, and alleging that O’Neil had fraudulently concealed his property to prevent its being attached or taken on legal process. To the validity of the proceedings before the commissioner, both as to matters of form and of substance, several objections are made. We proceed to consider them in their natural order. 1st. As to matters of form.

The petition was signed “ Thomas Glover, by Richard Glover his attorney,” and sworn to by Richard Glover; the form of oath being that the facts set forth in the petition “are true, according to his best knowledge and belief.”

It is said the petition is defective, 1st, because it is not signed and sworn to by the petitioner in person; 2d, because the oath is insufficient.

1. We think the statute does not require that the petition should be signed or sworn to by the creditor in person. The language of the statute is “ any of his creditors, whose claims provable against his estate amount to the sum of one hundred dollars, may apply by petition, stating the facts and the nature of said claims, verified by oath.” St. 1844, c. 178, § 9. The language of the statute to which the last is an addition is, “ any creditor, having a demand,” &c., “ may apply, by petition, setting forth the facts, and praying that a warrant may issue.” St. 1838, c. 163, § 19. Upon a petition so filed, notice is in all cases to be given to the debtor; and if, upon a hearing before the commissioner, the facts set forth in the petition shall appear to be true, a warrant is to issue. St. 1844, c. 178, § 9. Buck v. Sayles, 9 Met. 459. Thompson v. Snow, 4 Cush. 121. On such hearing, the allegations made in the petition, though on oath, are not to be received as evidence. They constitute ground only for notice to the debtor, and an examination and hearing of the cause. Jordan, petitioner, 9 Met. 292.

Where the subject matter for the action of a judicial tribunal is exclusively within the knowledge of the party moving for its judgment, or where the law has reposed in such party a per[157]*157sonal trust and confidence, the party must petition in person. But except in cases falling within these principles, unless the language of the statute in terms requires it, we see no good reason for the restriction. On the other hand, it is apparent that great embarrassment might result from it. The case at bar presents an apt illustration. The creditor resides in London. In relation both to the debt due, and the acts of insolvency, his agent and attorney here had the knowledge of the facts. To require the petition to be sent to London for the signature and verification of the creditor would not only subject him to unnecessary expense; but the necessary delay might, it is obvious, defeat the very object of the petition.

We are not to presume that the commissioner or judge of insolvency will act without discretion in the matter, or without inquiring as to the authority of the person assuming to act for the creditor, and his means of knowing the facts he assumes to verify.

2. Nor does the objection to the form of the oath strike us as sound. In relation to the acts to establish concealment, fraudulent conveyance, or other act of insolvency, it is apparent that they would seldom be within the personal knowledge of the petitioning creditor; and if, as to the acts of insolvency, as well as to the debt itself, the commissioner or judge has this form of verification, by one who has reasonable opportunity of knowing the facts, we think it presents a basis for notice and inquiry, reasonable in itself, and fairly within the provision of the statute.

3. It is said that this petition is defective because it contains no allegation of the insolvency of the debtor. Such allegation is, we think, not necessary. And it is not necessary to allege such insolvency, because it is not necessary to prove it.

Our insolvent law is, in substance and effect, and especially in its proceedings in invitum, a system of bankruptcy. Upon the doing by the debtor of any of certain fraudulent acts, he commits an act of insolvency or bankruptcy, and furnishes legal ground for declaring him insolvent and for the sequestration of his estate.

[158]*158The language of the statutes is clear and explicit. Sts. 1838, c. 163, § 19 ; 1844, c. 178, § 9. The latter section is as follows; “ In addition to the several causes for proceeding against an insolvent debtor, enumerated in the statute of 1838, c. 163, § 19, if any person shall remove himself, or his property, or any part thereof, from the Commonwealth, with intent to defraud his creditors, or shall conceal himself to avoid arrest, or his property, or any part thereof, to prevent its being attached or taken on any legal process, or make any fraudulent conveyance or transfer of his property, or any part thereof, then any of his creditors, whose claims, provable against his estate under this act and the aforementioned acts or any of them, amount to the sum of one hundred dollars, may apply by petition.”

4. A question of practical difficulty might have arisen if the case had shown the existence of but a single creditor. It was upon this ground, we understand, the temporary injunction was granted. But it now appears there are other creditors, and though their debts are secured by mortgage, they may, under the provisions of the statute, release then: security, and prove their claims, or, under the order of the judge, sell the property held as collateral security, and make proof of the balance. St. 1838, c. 163, § 3. Without deciding what would be the result if the petitioning creditor was the sole creditor, we think it plain that upon proof of the existence of the debt due the petitioner, and of the existence of other creditors, so that a distribution might be made, and of the commission of any one of the fraudulent acts enumerated in the statute, the warrant must issue.

5. It is further objected to the validity of the proceedings before the commissioner, that there was neither allegation in the petition, nor proof before the commissioner, of any facts which constitute concealment of property, within the intendment of the statute of 1844, c. 178, § 9.

As to the question of form, we think the defect was cured by the specification filed at the adjournment, which was ordered upon the motion of the petitioner in this case, the respondent in the original proceeding.

[159]*1596. What facts, under the insolvent law, would constitute a concealment of property is a question of greater difficulty. The words of the statute have just been cited.

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71 Mass. 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oneil-v-glover-mass-1855.