Parker v. Wright

66 Me. 392, 1877 Me. LEXIS 156
CourtSupreme Judicial Court of Maine
DecidedJanuary 9, 1877
StatusPublished
Cited by1 cases

This text of 66 Me. 392 (Parker v. Wright) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parker v. Wright, 66 Me. 392, 1877 Me. LEXIS 156 (Me. 1877).

Opinion

Danforth, J.

The disclosure of the alleged trustees in this case, shows that the principal defendant is a member of the firm of Blackwell & Wright, and the only property which they had in their hands was a debt due to the firm. It also shows that the indebtedness of the firm was somewhat larger than the claim against the trustees. These facts are stated partly from the personal knowledge of the alleged trustee who makes the disclosure, and partly from information and belief. The belief in the truth of the information, is stated under oath; it therefore becomes a part of the disclosure, and must be taken as such. Chase v. Bradley, 17 Maine, 89. Willard v. Sturtevant, 7 Pick. 194-7. Kelly v. Bowman, 12 Pick. 383. It thus appears from the dis[394]*394closure, that the other partner, Blackwell, has an interest in the funds disclosed. If not so, the plaintiff or defendant under proper allegations, could have shown the facts. R. S., c. 86, § 29.

In this state of the case, Blackwell appeared voluntarily claiming the proceeds of the demand disclosed as necessary to pay the partnership debts, and asked to be permitted to file allegations, and, though not so stated we must presume, for the purpose of showing his claim well founded. He was not permitted to do so, and the trustees were charged. To both of which rulings, exceptions were filed. If the first ruling was wrong, the second was, also. If Blackwell had a right to be heard, being excluded, the judgment would not be binding upon him; and the trustees should have been discharged. Burnell v. Weld, 59 Maine, 423.

Ought Blackwell to have been admitted a party to the suit ? By R. S., c. 86, § 32, “when it appears by the answers of a trustee, that any effects, goods or credits in his hands are claimed by a third person in virtue of an assignment from the principal debtor, or in some other way, the court may permit such claimant, if he sees cause, to appear. If he does not appear voluntarily,” he may be cited, &c. On appearing, he may become a party to the suit so far as his title may be in question, and “allege and prove any facts not stated or denied in the disclosure of the trustee.”

It will be seen that the words ‘of the statute, “or in some other way,” are sufficiently broad to include any way in which the claimant can show a title, no matter how it may have arisen, or in what form it may be presented, provided it is such as the law will uphold.

This case, then, involves the question, as to how far one partner may claim a debt due the firm, as against a creditor of the other partner, who has attached the debt in a trustee process.

That the interest of one partner in the tangible property of the partnership may be attached and sold in payment of his private debt, must be considered as well settled, perhaps wherever the common law prevails. In this state it seems now to be well settled, that his interest may be attached for the same purpose in a trustee process, though in other states a different doctrine pre-•.vailsj on the ground that a joint debt cannot thus be severed.

[395]*395Formerly, in the case of tangible property, where the partnership consisted of two persons, under an attachment and seizure, the creditor would hold one-half the property, not because the debtor necessarily owned that amount, but rather on account of the difficulty and delay in ascertaining the separate partner’s interest; as that could be done without the consent of the parties interested, only by a process in equity. But as wiser counsels prevailed, it was considered that difficulties and delays were no excuse for injustice, a different doctrine was adopted, and it is now well settled that a creditor of one partner can take only the actual legal interest of that partner to pay his private debt. The purchaser at the execution sale takes the place of the debtor and, his interest, whatever it may be, after the affairs of the partnership are settled, with all the liabilities and uncertainties attendant upon that settlement. This avoids the injustice of taking the property of one to pay the debt of another ; while the creditor, though he may complain of the difficulties and delays, in reaching the desired end, must submit, as the remedies are such as, and the best that the law has provided for him, in common with all citizens, to protect their rights, as well as enforce their claims. This matter has been fully and sufficiently discussed in Collyer on Part., 4th Am. ed. 735, and notes; Story on Part., 6th ed., §§ 261-264, and notes; 1 Am. Lead. Cases, 470; 2 Lead. Cases in Eq., 3d ed. 336. To ascertain this interest of one partner, the priority of joint creditors and the rights of the other partners are fully recognized and respected. Smith v. Barker, 10 Maine,458. Douglas v. Winslow, 20 Maine, 89. Pierce v. Jackson, 6 Mass. 242. Tobey v. McFarlin, 115 Mass. 98, 101.

Such being the rule in relation to attachment and sale on execution, founded, as it is, upon well recognized principles of law and justice, and enforced by such process as is common to all, we see no good reason why it should not be applied to that kind of property which can only be reached by a trustee process. There is nothing in the form of this process which should give it in this respect an advantage over the other. A debt due the firm is as much a part of its assets as any other property, and in its disposition is subject to the same laws; and the interest of each partner [396]*396in it is to be ascertained in the same way, and depends upon the same principles; with this exception, that as the court must determine the amount for which the trustee shall be chargeable, the extent of the debtor’s interest must necessarily be ascertained before judgment, while under an attachment and sale, it may be ascertained before or after, usually after.

The plaintiff relies upon Whitney v. Munroe, 19 Maine, 42 ; Thompson v. Lewis, 34 Maine, 167 ; and Smith v. Cahoon, 37 Maine, 281, confirmed by Burnell v. Weld, before cited, to sustain his position. These cases hold that a debt due the partnership may be trusteed by a creditor of one of the partners, and, perhaps, in the absence of all proof to the contrary, that the interest of one of two partners will be presumed to be one-half, but nothing more. Neither of them decides that proof will not be received to show the debtor partner’s interest, or that the trustee should be charged for more than that interest. On the other hand, in Whitney v. Munroe, the prior right of partnership creditors is distinctly recognized, as well as their claim to assert such right by a similar process. In Thompson v. Lewis, one of the partners having deceased, it is said : “Or the administrator may claim the credits for the estate; and when it so appears by the disclosure, the court may permit him to become a party to the suit, and have his claim investigated and determined.” This case clearly recognizes the right of the creditor to no more than the actual interest of his debtor. The same may be said of Smith v. Cahoon.

But it is claim'ed that the remedy of the joint creditors is only by suit against both the partners and summoning the same trustees. This may indeed be one remedy, but we think not the only one ; and this might often fail from a want of notice of the prior suit, or some of the joint debts may not have become payable.

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Bluebook (online)
66 Me. 392, 1877 Me. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-wright-me-1877.