Powers v. Raymond

137 Mass. 483, 1884 Mass. LEXIS 298
Massachusetts Supreme Judicial Court·Decided September 5, 1884·Published·Cited by 31 cases

Opinion

Field, J.

This is a bill in equity against Cadwallader M. Raymond, John M. Raymond, and Julia C. Salmon, brought to collect a debt, which, it is alleged, the Raymonds owe the plaintiff for goods sold and delivered. It is also alleged that they have conveyed to Salmon certain personal chattels in fraud of their creditors, which she holds, and which are liable to be attached and taken on execution in an action at law against them.

The bill was filed on August 2, 1881, and was brought under the St. of 1875, c. 235. (Pub. Sts. c. 151, § 3.) The only matters of law which have been brought to this court are the appeals from the refusal of the court below to order issues to a jury, the appeal from the final decree, and the questions arising upon the supplemental answers, which are presented by the report. These supplemental answers allege that the Raymonds have been adjudged' insolvent debtors in this Commonwealth, and that an assignment of their joint and separate estates has been made to Charles A. Stebbins, the assignee in insolvency. The defendants contend that, by the assignment in insolvency, the right of the plaintiff to pursue the property alleged to have been fraudulently conveyed has passed to the assignee in insolvency; that the plaintiff can no longer maintain the bill for the purpose of reaching this property; and, [484] therefore, that jurisdiction in equity is gone. The plaintiff contends that he has acquired a lien upon the property by filing his bill; and that, in any event, he is entitled to have the money which has been paid into court by Salmon applied to the satisfaction of his claim against the Raymonds.

We have decided in Squire v. Lincoln, ante, 399, that the plaintiff, by filing his bill, acquired no lien, within the meaning of the Pub. Sts. c. 157, § 47 ; that the assignee can, if he chooses, intervene in the suit for the purpose of having it dismissed, but if the assignee, after notice of the suit, does not intervene, it is not open to the defendants to set up this defence against the plaintiff. The money paid into court was paid in to await the final decree; if the plaintiff obtains no final decree, he is not entitled to receive this sum.

This is a suit unknown to general equity jurisprudence. If the plaintiff had obtained a judgment at law against the Raymonds, and the execution had been returned unsatisfied, a suit in equity under the general equity powers of the court could have been maintained on the judgment for the purpose of reaching and applying, in satisfaction of it, property which ought so to be applied, but which could not be taken on an execution at law. Ager v. Murray, 105 U. S. 126. Carver v. Peck, 131 Mass. 291.

This is not a case in which the title to property purchased and paid for by the debtor remains in the vendor, or has been conveyed to a third person. If the property of the debtor has been conveyed in fraud of creditors, it is as to this plaintiff, if a creditor, regarded in the law as still the property of the debtor. Before the St. of 1875, c. 235, the course of legal procedure was well known. The plaintiff could have sued the Raymonds at law and attached their property, and, if he recovered judgment, could have levied execution upon it and have sold it. If Salmon did not yield to the claim of the plaintiff, that the property was liable to be taken on an execution against the Raymonds, she could have replevied the property from the officer or from any other person in whose possession she found it, and who refused to deliver it to her, or could have brought trover for the conversion of it. Both actions would have been tried by a jury, if either party demanded a jury.

[485] By trustee process, under the existing statutes, the plaintiff in an action at law against the Raymonds could have attached the goods in the possession of Salmon, if she held them by a conveyance from the Raymonds which was void as to their creditors. Gen. Sts. a. 142, § 25. Pub. Sts. c. 183, § 26. Lamb v. Stone, 11 Pick. 527.

In trustee process, the answers and statements sworn to by the trustee are considered as true in deciding how far he is chargeable, but either party “ may allege and prove any facts, not stated nor denied by the trustee, that may be material in deciding that question,” and these questions of fact may be determined by the court, or may be submitted to a jury, as the court may decide. Pub. Sts. c. 183, §§ 17, 18. The principal defendants in this process would have the right to a trial by jury, if they seasonably demanded it.

These modes of legal procedure still remain. The St. of 1875, c. 235, has given an additional mode of procedure in equity.

This case does not call for any elaborate discussion of the scope of article 15 of the Declaration of Rights. See Charles River Bridge v. Warren Bridge, 7 Pick. 344; Ward v. Hill, 4 Gray, 593; Elliott v. Balcom, 11 Gray, 286; Shaw v. Norfolk County Railroad, 16 Gray, 407; Franklin v. Greene, 2 Allen, 519; Hamilton Ins. Co. v. Parker, 11 Allen, 574; Stockbridge Iron Co. v. Hudson Iron Co. 102 Mass. 45; Ross v. New England Ins. Co. 120 Mass. 113 ; Harris v. Mackintosh, 133 Mass. 228 ; Hoitt v. Burleigh, 18 N. H. 389; Call v. Perkins, 65 Maine, 439; Rhines v. Clark, 51 Penn. St. 96; Haines v. Levin, 51 Penn. St. 412; Haines's appeal, 73 Penn. St. 169; People v. Albany & Susquehanna Railroad, 57 N. Y. 161; Copp v. Henniker, 55 N. H. 179; Armstrong's Foundry, 6 Wall. 766; Morris's Cotton, 8 Wall. 507; Root v. Railway, 105 U. S. 189, 206.

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Powers v. Raymond, 137 Mass. 483, 1884 Mass. LEXIS 298 (Mass. 1884).

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