Paxton v. Rich

7 S.E. 531, 85 Va. 378, 1888 Va. LEXIS 44
CourtSupreme Court of Virginia
DecidedSeptember 13, 1888
StatusPublished
Cited by20 cases

This text of 7 S.E. 531 (Paxton v. Rich) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paxton v. Rich, 7 S.E. 531, 85 Va. 378, 1888 Va. LEXIS 44 (Va. 1888).

Opinion

Lewis, P.,

delivered the opinion of the court.

This is the second appeal in this case. The first is reported under the style of Paxton v. Stuart, 80 Va. 873, where the principal facts connected with the litigation are stated by Judge Richardson in delivering the opinion of the court. On [380]*380that appeal this court declared all the decrees of the circuit court to be erroneous which were rendered after the death of the defendant, P. M. Paxton, on the ground that when those decrees were rendered the estate of the decedent was not represented before the court, and remanded the cause for further proceedings.

After the case went back to the circuit court, to-wit: on the 29th of November, 1887, the judgment, which is the principal subject of this appeal, was for the first time proved before the commissioner. It was recovered in the county court of Botetourt county in the name of W. W. Rich, assignee, upon one of several bonds executed by P. M. Paxton, in his life-time, to A. Gr. Stalnaker, with the appellant, J. T. Paxton, as his surety, for the purchase of a moiety of the tract of land designated in the record as “Soldiers’ Retreat,” and all of which bonds were secured by a vendor’s lien on the land.

The judgment was obtained on the 19th of May, 1873, in an action commenced on the 27th of January in that year, and on the 20th of May, in the same year, a,fi.fa. issued upon it, which has never heen returned. The defendants, J. T. Paxton and the administrator of P. M. Paxton, deceased,'pleaded the statute of limitations when the judgment was presented to the commissioner, and the plea was sustained by the circuit court.

We think the plea ought to have been overruled, and we think so because the .bill of Stuart and others, which was filed to enforce all the liens on the real estate of P. M. Paxton, is a creditors’ bill, as was said on the former appeal, and hence the running of the statute was suspended by virtue of the decree for an account of liens, which was rendered a short time before the judgment was obtained.

That one or more lien creditors of a living man, as well as of a corporation, may maintain a creditors’ suit in behalf of themselves and all others similarly situated to enforce the liens binding the property of their debtor, is well settled. The point was expressly determined in Bank of the Old Dominion v. Allen, 76 Va. 200, and again in the recent case of Preston v. Aston’s [381]*381Adm’r, ante, p. 104. In the first-mentioned case the hill was filed by a judgment creditor to subject the defendant’s lands to the satisfaction of the liens thereon, and an order for an account of liens was duly made. In the progress of the cause a petition was filed, asserting a judgment which had been recovered more than ten years before the petition was filed, and upon which no execution had ever issued. The claim was accordingly resisted on the ground that the judgment was barred by the statute of limitations. But this court held otherwise, holding that the suit was a creditors’ suit, and that the order for an account suspended the running of the statute. Judge Burks, in delivering the opinion of the court, said that, as soon as the order was made, all the lien creditors became parties to the suit, in a general sense, and that the statute ceased to run against the judgment from the date of the order, if not from the filing of the bill; citing Piedmont and Arlington Life Ins. Co. v. Maury, 75 Va. 508; Harney’s Adm’r v. Steptoe, 17 Gratt. 289; Stemdale v. Hankinson, 1 Sim. 393.

The settled rule, in respect to a creditors’ suit for the administration'of the assets 'of a deceased debtor, is that a decree for an account of outstanding debts operates a suspension of all other pending suits of creditors, who must come in under the decree, which is treated as a decree in favor of all the creditors; and from that date the statute of limitations ceases to run, if not from the filing of the hill. The court will also, if necessary, restrain the prosecution of separate suits, and if any creditor, after reasonable notice, declines to come in, he will he excluded from the benefit of the decree, and yet will be considered as bound by the acts done under the authority of the court. Stephenson v. Taverners, 9 Gratt. 398; Harvey's Adm’r v. Steptoe, 17 Id. 289; Kent’s Adm’r v. Cloyd’s Adm’r, 30 Id. 555; Ewing’s Adm’r v. Ferguson’s Adm’r, 33 Id. 548; Hurn v. Keller, 79 Va. 415; Story’s Eq. Pl. sec. 99.

The rule, however, as is truly said in 1 Bart. Oh. Pr. p. 177, has not been carried to the extent of holding that a lien creditor [382]*382of a living man, who has not been made a party to the suit or proved his claim before the commissioner, will be bound by the proceedings in the suit. Nor are we aware of any principle or authority for holding that a decree for an account of liens in a suit against a living man operates a suspension of all pending actions at law against him. On the contrary, it does not; but the plaintiff in any such action may proceed to judgment, and, when his judgments obtained, he may come in under the decree for an account and prove his lien in the chancery suit; for until he obtains a judgment, unless his debt is otherwise secured, he has no standing in the chancery suit, the object of which is the satisfaction of secured debts only. And so here, when the judgment in question was obtained, the plaintiff in the judgment became entitled to the benefit of the decree for an account of liens, which had been rendered in this suit, and consequently the judgment is not affected by the statute of limitations.

In any view of the case, howevei’, as to the effect of the statute upon the judgment, the result is the same,, so far as the right to enforce the vendor’s lien as a security for the debt represented by the judgment is concerned. This court has repeatedly decided that although the remedy on a claim secured by a mortgage, deed of trust, or vendor’s lien may be barred at law, yet the remedy in equity to enforce the lien is not affected by any lapse of time short of the period sufficient to raise the presumption of payment. Hanna v. Wilson, 3 G-ratt. 232; Smith’s Ex'x v. Washington, &c., Railroad Co., 33 Id. 617; Bowie v. Poor School Society of Westmoreland, 75 Va. 300; Stimpson v. Bishop, 82 Id. 190. In the last-mentioned case it was said that the lien remains until the debt it was given to secure is satisfied, and is not affected by a judgment at law merging the original evidence of the indebtedness.

The precise question was adjudged by the supreme court of the United States in Bank of the Metropolis v. Guttschlick, 14 Pet. 19. In that case there was a judgment upon a note secured by a deed of trust, and the judgment being barred by the act [383]*383of limitations, it was insisted that the deed- of trust was not enforceable. The court, however, held that although the note evidencing the debt was merged in the judgment, which was barred by the statute, yet that the remedy under the deed of trust was not extinguished, though it had relation to and was intended to secure the payment of the same note. And authorities to the same effect are very numerous.

The case of Hutcheson v. Grubbs, 80 Va. 251, referred to by counsel, has no application.

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Bluebook (online)
7 S.E. 531, 85 Va. 378, 1888 Va. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paxton-v-rich-va-1888.