Penn Central Light & Power Co. v. Central Eastern Power Co.

171 A. 332, 36 Del. 74, 6 W.W. Harr. 74, 1934 Del. LEXIS 6
CourtSuperior Court of Delaware
DecidedJanuary 3, 1934
StatusPublished
Cited by2 cases

This text of 171 A. 332 (Penn Central Light & Power Co. v. Central Eastern Power Co.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penn Central Light & Power Co. v. Central Eastern Power Co., 171 A. 332, 36 Del. 74, 6 W.W. Harr. 74, 1934 Del. LEXIS 6 (Del. Ct. App. 1934).

Opinion

Layton, C. J.,

delivering the opinion of the Court:

[77]*77The plaintiff at the March Term, 1933, sued the defendant upon two promissory notes. The record shows that service of process was duly made upon the accredited resident agent of the defendant on February 7, 1933. On April 13, 1933, affidavit of demand having been duly filed in accordance with the statute, judgment was obtained for want of affidavit- of defense.

There was no appearance by the defendant.

The defendant alleges that it knew nothing of the suit or judgment until on or about July 11, 1933, and thereafter, during the May Term, 1933, it filed its petition praying that the judgment be opened and that it be let into a trial.

The defendant does not deny that service of process was made upon its resident agent in compliance with Section 48 of the General Corporation Laws (Revised Code 1915, § 1962, as amended by 34 Del. Laws, c. 112, § 12), but it avers that it received no copy of the writ or other notice of the suit until after the term of Court, at which the judgment was rendered, had' expired, for the reason that the person to whom the agent had been instructed to send writs of summons, and to whom it did send by mail the writ of summons, was not then connected with the defendant company in any capacity, had removed his offices from the place to which the letter had been addressed, and the recipient of the letter containing the writ did not deliver it to the corporation. It alleges in its petition that there is a just and legal defense to the action.

The defendant admits that it is unable to give security for the payment of the judgment with interest and costs as provided by the Statute under the provisions of which the judgment was obtained, Revised Code 1915, § 4169, but it contends: (1) Under Section 4169, if properly construed, the Court may accept the judgment itself as security by ordering it to remain cautionary; (2) the judgment may be regarded as having been recovered under another sec[78]*78tion, 4089, as a judgment by default after declaration filed and no appearance by the defendant, wherefore, it may have the judgment opened, with no security, any execution thereon to remain cautionary.

The plaintiff contends, inter alia:

(1) The power of the Court is exercisable only under Section 4169;

(2) That the service of process was properly and legally made is not denied, and the defendant cannot be heard to say that it had no notice or knowledge of the suit as the failure of the resident agent to notify the corporate officers is immaterial.

Section 4169 is the statute providing for the rendition of speedy judgments, notwithstanding appearance by the defendant, upon affidavit of demand filed, if no affidavit of defense is interposed. Under this statute judgments cannot be obtained in all causes of action, but only where the suits are based upon instruments in writing for the payment of money, book accounts, recognizances, mortgages and judgments. The material parts of the statute concern (a) the power of the Court to stay execution, (b) to open a judgment obtained under its sanction.

These parts of the statute read as follows:

“And provided also, that upon any judgment under this section a stay of execution for six months shall be granted on security being given by the defendant for the payment of such judgment, with interest and costs, in such form as by the rules of the Court shall be prescribed. * * * In case of security being given as aforesaid by the defendant, the entry of such security shall have all the force and effect of a judgment, and at the expiration of the stay given, the said judgments, with costs, may be collected by execution process sued out jointly or severally against said principal and surety. * * *
“Upon sufficient cause shown, the court may open such judgment and let the defendant into a trial, security being first given, in manner and form as aforesaid, for the payment of such judgment, with interest and costs, as the plaintiff may recover in such action.”

[79]*79Section 4089 provides for the rendition of judgments by default in case where the defendant has been duly summoned and has not appeared during the term upon the filing of a declaration by the plaintiff followed by motion for judgment.

The second paragraph of this section is:

“But if the defendant shall, at or before the next term after such judgment, by affidavit deny notice, or knowledge, of such suit before the judgment was rendered, and shall allege that there is a just, or legal, defense to the action, or some part thereof, such judgment shall be taken off and he shall be permitted to appear; any execution which may have been issued thereon to remain cautionary.”

The defendant contends that the word “manner” in Section 4169 indicates that the Court has discretion as to the kind and nature of the security to be given by a defendant as a prerequisite for the opening of a judgment, and that the kind of security may be the judgment itself standing as security.

The entire section must be read together. The words “manner and form” refer and relate to the security required to be given by the preceding paragraph. This phrase refers to the mode in which the thing is to be done. It does not introduce anything new and no exception is to be implied from the use of these words. The intention of the Legislature is effected by a literal construction. Acraman v. Herniman, 16 Ald. & E. 1004.

The word “security” must be given its plain and natural meaning. Webster defines it to be “something given or deposited to secure the payment of a debt or the performance of a contract.”

Bouvier says it is “that which renders a matter secure; an instrument which renders certain the performance of a contract.”

Again, it is defined as that which makes the enjoyment or enforcement of a right more certain and secure. First [80]*80Nat. Bank v. Hollingsworth, 78 Iowa 575, 43 N. W. 536, 6 L. R. A. 92.

As used in the statute, it has the sense of “surety,” that is, a bond with surety or sureties. Goggins v. Jones, 115 Ga. 596, 41 S. E. 995.

If the argument of the defendant is sound, the Court may disregard the plain meaning of the language of the statute and declare that no security is required to make safe a judgment obtained under the statute. The Court has no such authority. To open a judgment under Section 4169, security must be given, and by security is meant something, in addition to and apart from the judgment itself, which may be relied upon by the plaintiff to make the payment of the judgment more certain and secure.

. The defendant suggests and contends that the plaintiff may be regarded as having obtained its judgment under Section 4089, and, therefore, the judgment may be opened and it let into a trial without giving security. It insists that all the requisites are present to bring the case within the purview of the section, that it was the defendant in a writ of summons, that it did not appear, that the return shows it was duly summoned, that the plaintiff filed a declaration, i.

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171 A. 332, 36 Del. 74, 6 W.W. Harr. 74, 1934 Del. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penn-central-light-power-co-v-central-eastern-power-co-delsuperct-1934.