Railroad Co. v. Neal

20 F. Cas. 183, 1 Woods 353
CourtU.S. Circuit Court for the District of Eastern Texas
DecidedMay 15, 1870
StatusPublished
Cited by1 cases

This text of 20 F. Cas. 183 (Railroad Co. v. Neal) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Railroad Co. v. Neal, 20 F. Cas. 183, 1 Woods 353 (circtedtx 1870).

Opinion

BRADLEY, Circuit Justice.

This is a suit in equity brought for an injunction to stay proceedings on a judgment at law, obtained in this court by default, and for a trial on the merits of the case. In ancient times, courts of equity very freely entertained jurisdiction of bills to stay proceedings at law for the purpose of giving to parties the benefit of a new trial, or the benefit of a trial where none had been had, when it appeared that injustice would be done if the relief prayed for were not granted. Such bills were called bills for new trial. This jurisdiction was assumed principally on the ground that there was no remedy at law. For, until the middle of the seventeenth century, the courts of law did not grant new trials for matter dehors the record. Since that period, however, they have gradually assumed jurisdiction of such cases, and for nearly a century past, have granted new trials and opened judgments in ail cases where justice required, and where they w.ere not restrained by some statutory or technical rule. The establishment nf a legal remedy has led to the disuse of the equitable one, except in cases of a peculiarly equitable character, as where the injured party has had a verdict or judgment rendered against him in consequence of accident or mistake or fraud of the other party, without any fault of his own and has no remedy, or has without his fault lost his remedy at law. This restriction of the equitable remedy has obtained in England and most of the American states; although ¡the more liberal relief is still accorded in Kentucky, and perhaps one or two other exceptional jurisdictions. The courts of the United States, however, adhere to the rule adopted in England and in most of the equity courts of this country.

Mr. Justice Story, in his Commentaries on Equity Jurisprudence, § 8S7, thus describes the jurisdiction as at present exercised: “In regard to injunctions after a judgment at law,” says he, “it may be stated, as a general principle, that any facts which prove it to be against conscience to execute such judgment, and of which the injured party could not have availed himself in a court of law, or of which he might have availed himself at law, but was prevented by fraud or accident, unmixed with any fault or negligence in himself or his agents, will authorize a court of equity to interfere by injunction to restrain the adverse party from availing himself of such judgment. Bills of this sort are usually called bills for a new trial.” In subsequent sections he states more fully some of the qualifications under which relief will, in any case, be granted. Thus, equity will not interfere upon a defense equally available at law. Section 894. Nor upon a defense which has been fully tried at law. Id. Nor if the complainant himself has been guilty of laches in bringing forward his defense. Section 895. Nor where he has neglected to apply for a new trial within the time appointed by the rules of the proper court of law. Id. A case came before Lord Redes-dale, in which a verdict had been rendered against the plaintiff, and he had applied for a new trial, which was refused for defect of notice of the motion; and thereupon the plaintiff filed a bill in equity. Lord Redesdale said that if the party had not brought evidence which was in his power, or had neglected to apply in time for a new trial, he could not interfere. “I do not know,” said his lordship, “that equity ever does interfere to grant a trial of a matter which has ali-eady been discussed in a court of law, a matter capable of being discussed there, and over which the court of law had full jurisdiction.” Bateman v. Willoe, 1 Schoales & L. 201.

Chancellor Kent, in a. case where a court of law had refused to set off one judgment against another, refused to entertain a bill for that purpose, saying: “The plaintiff elected to seek relief in the mayor’s court, upon the very point now raised by the bill. He had his choice whether to apply to that court or to this in the first instance. It is res adjudi-cata.” Again; “The settled doctrine of the court of chancery is, not to relieve against a judgment at law on the ground of its being contrary to equity, unless the defendant be» low was ignorant of the fact in question pend ing the suit, or it could not have been received as a defense.” Simpson v. Hart, 1 Johns. Ch. 91.

[184]*184Tlie principles announced by these eminent .jurists have been expressly adopted by the supreme court. In the case of Hendrickson v. Hinckley, 17 How. [58 U. S.] 445, the court say: “A court of equity does not interfere with judgments at law, unless the complainant has aii equitable defense of which he could not avail himself at law. because it did not amount to a legal defense, or had a good defense at. law, which he was prevented from availing himself of by fraud or accident, unmixed with negligence of himself or his agents.”

These principles will enable us to decide the case before us without much difficulty. It is undoubtedly a case of hardship, and requires on the part of the court a firm adherence to the principles there propounded, in order not to be led astray. It quite clearly appears, that the defendant, having sustained an injury by a fall from one of the complainants’ cars, went voluntarily to the complainants’ office, and whilst claiming from them nothing by way of damages as a matter of right asked for a donation to enable him to get to a hospital, and on receiving $50, signed a receipt in full of all claims and demands against the complainants, which they still hold. Immediately after this he sued the complainants in the state district court, and laid his damages at $15,000. Discontinuing this suit, he brought another suit in this court for $50,000, and for default of a plea, obtained judgment and an inquest of damages to the amount of $22,000. The complainants allege that the judgment was rendered against them in consequence of a misapprehension and a mistake on the part of their counsel, and was a complete surprise upon them after they had taken every reasonable precaution for putting in their defense. If this is true (and the proofs serve to establish its truth), the complainants ought undoubtedly to have had a trial, and a suspension or opening of the judgment for that purpose. But this ground for suspending or opening the judgment and awarding a trial was one of which the complainants could have availed themselves by motion, on the law side of the court where the action was brought and the judgment was rendered. And the court ought not to entertain a bill in equity where there was a full and adequate remedy at law. Had the complainants lost their remedy at law by lapse of time, or otherwise without their fault; for example, had the original mistake or misapprehension continued without notice of the judgment until the expiration of the term; or, had the defendant or his attorney, by his conduct, misled the complainants until the time for making a motion had passed; then the want of a remedy at law would have furnished the court good ground for entertaining a bill in equity. But so far from this being the case, the complainants (or their attorneys) not only became aware of the judgment almost immediately after it was rendered, and during the same term, but on the second day thereafter, to wit, on the 17th of July, 1869, actually entered a motion to open the judgment and award a trial.

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Bluebook (online)
20 F. Cas. 183, 1 Woods 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-co-v-neal-circtedtx-1870.