Reid v. McRae

190 Ga. 323
CourtSupreme Court of Georgia
DecidedMay 23, 1940
DocketNo. 13128
StatusPublished
Cited by1 cases

This text of 190 Ga. 323 (Reid v. McRae) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reid v. McRae, 190 Ga. 323 (Ga. 1940).

Opinion

Bell, Justice.

It appears from the allegations and prayers that the main purpose of the suit was to obtain the relief of specific performance, requiring the defendant to turn over “to petitioner the government check for said parity on said cotton ,when the same arrived and was ready for delivery,” in order that petitioner might collect and have as her own the money represented thereby. If such was the nature of the agreement, it would reasonably include an indorsement of the check by the defendant. The petition alleged, in effect, that the plaintiff had paid to the defendant the full amount agreed upon as consideration for the check; and 'that on discovery of the fact that it called for an amount in excess of the consideration so paid, the plaintiff offered to pay the difference, but that such offer was declined by the defendant. The petition further alleged that the defendant is insolvent.

As a general rule, equity will not decree specific performance a contract relating to personalty. Code, § 37-803; Carolee v. Handelis, 103 Ga. 299 (29 S. E. 935); Gabrell v. Byers, 178 Ga. 16 (172 S. E. 227). But there are exceptions to this rule, and insolvency alone may supply basis for an exception. In Shockley v. Davis, 17 Ga. 177 (63 Am. D. 233), it was held that where A agreed with B that in consideration that B would become his surety to C, A would turn over to B dioses in action for his indemnity, and where A was in failing circumstances, a court of equity would decree specific performance of the contract. In Saulsbury v. Blandys, 60 Ga. 646, it was held that where property was sold and delivered to a third person on the faith of a promise by the defendants to accept his draft for the purchase-money, specific performance of such contract to accept the draft might be enforced in behalf of the seller in whose favor the draft was to be-issued, the purchaser being insolvent.

[331]*331In National Life Insurance Co. v. Beck & Gregg Hardware Co., 148 Ga. 757 (98 S. E. 266), this court sustained an action against an insurance company for specific performance of an agreement to extend or renew an insurance policy. Under these authorities, the petition stated a cause of action for specific performance; also for injunction and receiver.

The principle that creditors without a lien may not as a general rule obtain injunction or other extraordinary relief in equity is inapplicable. Code, § 55-106. The plaintiff did not sue as a creditor. According to the petition, all accounts between the parties have been settled, and in the contract of settlement the plaintiff simply became entitled to the parity check upon its issue and delivery to the defendant. Nor is there merit in the contention that the petition did not show an equitable assignment, that is, an intention of the parties to effectuate an immediate change of ownership with respect to the particular fund in question. Compare Jones v. Glover, 93 Ga. 484 (21 S. E. 50). It is not essential that the fund assigned shall be in actual existence at the time, but it is sufficient if it “exists potentially.” Walton v. Horkan, 112 Ga. 814 (38 S. E. 105, 81 Am. St. R. 77); Brown Guano Co. v. Bridges, 34 Ga. App. 652 (2), 656 (130 S. E. 695. The agreement, if given effect according to its terms, did not leave the assignor with any right of control of the fund, either by revocation or collection, but as between the parties his only authority was to receive the cheek, and then to indorse and deliver it to the plaintiff. Accordingly, Reviere v. Chambliss, 120 Ga. 714 (48 S. E. 122), is not in point. We think the allegations were sufficient to show an equitable assignment; but this is not to imply that even if the petition should be construed otherwise, it would be defective as a suit for specific performance.

Neither the Federal government nor any agency of it was sued or made a party defendant. Nor does the defendant’s check represent a salary of an officer or government employee. Consequently the case does not come within the principle that the salary of such an officer or employee can not be made the subject of a garnishment or receivership. Dotterer v. Bowe, 84 Ga. 769 (11 S. E. 896); Morgan v. Rust, 100 Ga. 346 (28 S. E. 419); West v. Floyd, 186 Ga. 190 (197 S. E. 236).

The court did hot err in overruling the demurrer to the allega[332]*332tions arid prayers for injunction and receivership. Compare Bell v. Dawson Grocery Co., 120 Ga. 628 (48 S. E. 150); Arnwine v. Beaver, 134 Ga. 377 (67 S. E. 937); Brandt v. Hofmayer Dry Goods Co., 146 Ga. 649 (92 S. E. 53).

The evidence introduced on interlocutory hearing showed without dispute that the defendant had received and cashed the check even before service of the petition and the restraining order, and authorized the inference that he had spent the proceeds before the hearing. The judge held the defendant in contempt of court for having disposed of the money after knowledge of the restraining order,' and so must have found that he had spent the money before the hearing, as contended by him. In these circumstances the judge erred in granting an injunction to restrain the defendant from indorsing and cashing the check, as prayed in the petition, and from disposing of the proceeds, as prayed in the amendment. ■The acts against which the plaintiff sought injunction having been completed before the interlocutory hearing, the prayers for injunction should have been refused. Sims v. Boyd, 177 Ga. 465 (2) (170 S. E. 375); Braswell v. Clark, 180 Ga. 727 (180 S. E. 486); Georgia Pacific Railway Co. v. Douglasville, 75 Ga. 828; Simmons v. Lindsey, 144 Ga. 845 (2) (88 S. E. 199); Shurley v. Black, 156 Ga. 683 (2) (119 S. E. 618). But it does not follow that the defendant could not be held in contempt, provided the other facts authorized an adjudication to that effect. The question of contempt will next be considered. ■ ■

The only restraining order was that issued on the original petition, -restraining the defendant from indorsing or cashing the :check except to indorse and deliver it to the plaintiff; no injunctive order having been passed on the amendment. 'The defendant had cashed the check and received the proceeds before he was served and before he was informed that the restraining order had been ■granted. After knowledge of the order, however, he disposed of the proceeds; and for having, done so he was attached and held in con- - tempt. The question is whether the judge was authorized to find that the-act of the defendant in disposing of the proceeds constituted a violation of the order restraining him from indorsing and ..cashing the check. We think so. According to.the plaintiff's-evidence, she had purchased the defendant's right to the parity payment, and-had fully paid the agreed consideration. Whether she [333]*333was bound to pay more when it developed that the sum payable to the defendant exceeded their estimate, the evidence showed that she did offer to pay the difference, and that the offer was refused.

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190 Ga. 323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-mcrae-ga-1940.