Perry-Mason Shoe Co. v. Sykes

72 Miss. 390
CourtMississippi Supreme Court
DecidedOctober 15, 1894
StatusPublished
Cited by5 cases

This text of 72 Miss. 390 (Perry-Mason Shoe Co. v. Sykes) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perry-Mason Shoe Co. v. Sykes, 72 Miss. 390 (Mich. 1894).

Opinion

Whitfield, J.,

delivered the opinion of the court.

The Perry-Mason Shoe Company, in its original cross petition, states that it ‘“submits to the jurisdiction of the chancery court in respect to all litigation and liability growing out of the bond given in this cause,” and, in its bond, obligates itself to “pay, to whomsoever the . . court shall order, the dam[393]*393ages,” etc. There is; therefore, no error in the alternative direction to pay Elkin and Goodbar Shoe Co. $561.20

The original cross petition o,f the Perry-Mason Shoe Company, “ seeking, ” in the language of the chancellor in the final decree, ‘' to rescind the sale of certain goods, and replevy the same,” is the one dismissed, not the amended cross petition asking the fixing of a lien and personal decree against W. E. Howard for $1,055.45 worth of goods alleged to have been sold as a “different lot of goodsfrom the lot replevied. On the return of the case into the court below, such personal decree should be entered. The case is still pending there. There was no error, in this view, in not entering the decree on the amended cross petition still pending.

On the merits the chancellor must have found, as facts, that the representations made by Howard to Perry were made not to induce the sale of goods, but to secure an extension of time on past-due indebtedness, for the payment of which Perry was then making very exigent demand — threatening suit; that the goods sold by the agent, Craddock, were sold before, and not on the faith p'f any such representations, if then made ‘ ‘ in general conversation” by Howard; and that the goods originally sold, and those sold through Craddock, were not sold in reliance upon the reports of the commercial agencies. We cannot say that these findings of fact are unwarranted. This disposes of the appeal by the Perry-Mason Shoe Company.

The appeal of Blacker, Gerstle & Co. (it is not a cross appeal) questions the correctness of the chancellor’s action in allowing the sums set out in the decree to the receiver and assignee as compensation for his services as receiver and assignee; to the receiver and assignee as attorney’s fees, and as compensation for W. E. Howard, for services as clerk.

The assignment was set aside, the debt preferred by Howard in favor of his wife being void under § 1178, code 1880, the chancellor finding that both Mr. and Mrs. Howard acted ‘' in perfect good faith. ’ ’ The bill of exceptions has been stricken from the [394]*394record, and we can only look to the record, aside from the bill of exceptions, in determining as to the propriety of the court’s action on these points.

As to the allowance made to the receiver for Howard, we are not prepared to say it is unreasonable, in the absence of the bill of exceptions. Respecting the amount decreed to W. Gr. Sykes, as receiver, the chancellor manifestly made the allowance as a gross sum for the entire service as receiver — not as part for salary as clerk, and part as commissions; and this, as to the mode of fixing his compensation, was correct, the receivership being one “in which the receiver was at once receiver and manager of a business.” Lichtenstein v. Dial, 68 Miss., 54. As to the reasonableness of the compensation, as to amount, in the absence of a bill of exceptions, and ' in view of the facts of the case, and the duties and responsibilities of the receiver, ’ ’ we cannot say the chancellor erred in the exercise of the large discretion committed to him in such matters. Bernheim v. Brogan, 66 Miss., 184.

More difficulty is encountered in the consideration of the allowance of the attorney’s fees to the receiver and assignee. 'We concur entirely with the learned chancellor in holding that it was perfectly proper, under the circumstances of this case, for the attorneys of the receiver and assignee to accept, subsequently, employment by Mrs. Howard, the preferred creditor. The service rendered was in all respects the same“-identical throughout — with that which would have been necessary to be rendered by the attorneys, had Mrs. Howard not been in the case. “The validity of her debt went to the whole assignment, ’ ’ as correctly observed by the chancellor. High on Receivers (3d ed.), § 217; Beach on Receivers, § 263.

Leaving entirely out of view, however, the bill of exceptions, it clearly appears — especially from the statements in the ' ‘ petition for assignee and attorney’s fees,” and the “receiver’s final report” — that the amount allowed manifestly embraced, in part, fees for services in defending unsuccessfully the suits [395]*395brought by the cross petitioners, Blacker, Gerstle & Co., and others, to declare the assignment void. The former recites that, 'sóon after the filing of his [assignee’s] petition, numerous cross petitions were filed by various parties claiming to be creditors, ’ ’ etc., " setting up various claims to and liens upon the property.in petitioner’s hands as an officer of this court, whereby divers issues were taken requiring adjudication by this court, ’ ’ and that said attorneys represented " this receiver on the trial of the said issues,” etc.

The question is thus squarely presented, in the construction of chapter 8 of the code of 1892, where an assignment for the benefit of creditors is declared void, not for actual fraud, but by reason of failure to comply with some positive, requirement of statute law, can the assignee — regarded in the character of assignee or of receiver — be allowed fees for attorney’s services rendered in an unsuccessful defense of the assignment against cross petitioning creditors, who set aside the assignment, and secure prior liens, under § 121 of the code of 1892, such fees to be charged upon and payable out of such assigned property on which such liens have thus been fixed ?

It will serve to clear the real point under review of embarrassment to say the services of the attorneys of the assignee and receiver rendered in successfully defending the claims made by Bolton and the Perry-Mason Shoe Company in their cross petitions, whereby they sought to rescind the sales, and recover the specific goods, were services for which compensation was properly allowable, as having been rendered in litigation resulting in the preservation for all entitled to the property oí the assignor, either under the assignment or the cross petitions. These services resulted in preventing the withdrawal from the property assigned of a part of it, open alike to those protected by the assignment, if it had stood, or to those who, as successful cross petitioners, fastened leins upon it. The case of the Haydock Carriage Co. v. Pier, 78 Wis., 582, is decisive of this point. Fees were allowed the assignee’s attorneys in that [396]*396case for successfully defending a replevin suit seeking to withdraw from the property assigned a part of it.' The court say: ‘' Such defense was made for the purpose of saving the property there in controversy to the creditors of the assignor. The expenses incurred by her in making such defense should be reimbursed ” to the assignee “ out of the proceeds of the assigned property. She must be allowed all her necessary disbursements in that action in both courts, including attorneys’ fees.” The principle underlying this allowance is clear. -

In Woodruff v. N. Y., L., E. & W. Railroad Co., 129 N. Y., p.

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72 Miss. 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-mason-shoe-co-v-sykes-miss-1894.