Ressler v. Witmer

1 Pears. 174
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedJanuary 16, 1860
StatusPublished

This text of 1 Pears. 174 (Ressler v. Witmer) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ressler v. Witmer, 1 Pears. 174 (Pa. Super. Ct. 1860).

Opinion

By the Court.

The bill in this case charges in substance that the decedent, Lessman, when on his deathbed, gave to the defendant a number of bonds, notes, etc., amounting to $1100, to hold in trust for himself and wife, and the other children and legal representatives of the decedent. That at the time and now the estate is largely indebted, much beyond the assets of the deceased, and the choses in action so intrusted to the defendant are required for the payment of his debts; that the defendant fraudulently denies the trust, and is about to collect the money due on the obligations, and convert the same to his own use. A decree for an injunction against collecting or disposing of the obligations is prayed for, and that they may be delivered over to the plaintiff, as administrator of the deceased, and brought into a regular course of distribution. To this bill the defendant put in a plea to the jurisdiction of the court, partly in the form of an answer denying the facts charged, and then contending that because the charges in the bill are so denied, an issue of fact is raised, which must be determined by a jury. It is probably the first time in the history of our jurisprudence that the power- of a court of chancery to determine disputed facts has been denied. [175]*175From the first organization of those courts, the practice has been uniform, to establish the allegations and denials contained in the bill and answer by the testimony of witnesses, taken either before the chancellor in person, master in chancery, or examiners appointed for the purpose; and it is only when great doubts arise in the mind of the chancellor, that an issue is directed. Not because either party asks, or has a right to ask it, but because the judge chooses to shift the responsibility of guessing from himself to a jury. The counsel for the defendant has referred us to the Constitution of the United States, as securing the right of trial by jury. It unquestionably does in “criminal cases” and in “suits at common law” in the courts of the United States; but the same Constitution fully recognizes the equity power of the courts; and from the passage of the first judiciary act under the Constitution, to the present day, the common law and equity practices have been kept distinct, and the line of demarkation, as established in England between the tribunals, has been most strictly observed. During all of that time those courts, as well as nearly all of the State tribunals, have determined disputed facts when arising in equity, without the aid of a jury. The chancellor, who has probably spent the most of a lifetime in unravelling intricate questions, and weighing the evidence in judicial controversies, is considered quite as competent to reach the truth in a disputed question of fact, as an inexperienced jury selected at random from the mass of the people.

The plea presented and subsequent exception, so far as they are both founded on the same general principle, are entitled to no weight whatever. Does the bill set forth a case cognizable in equity in Pennsylvania? We must look to that alone to determine the question of jurisdiction. But two grounds are properly disclosed or averred in the bill, that the obligations demanded are held in trust, and that the defendant has been guilty of & fraud in refusing to account for them, and in claiming them as his own. We have the powers of a court of chancery in “ the case of trust money and property,” and in all cases where chancery entertains jurisdiction under either of the heads of fraud, accident, mistake, and account, whether such fraud, accident, mistake, or account be actual or constructive. There is another ground on which, from the facts disclosed, we might have well been asked to make a decree: “ The affording specific relief, when the recovery of damages would be an inadequate remedy; ” but that is not averred in the bill, nor any decree asked by reason thereof. The action of trover to recover promissory notes, with the chance of obtaining damages to their value and collecting the amount by an execution, we look upon as a very inadequate remedy for their unlawful detention. There can be but little doubt of a trust, such as is disclosed and averred in this bill, coming within the jurisdiction of an English [176]*176chancellor. Our statute is remedial in its character, and should be liberally construed, so as to cover every case coming within the mischief intended to be remedied. The general case of trust money and property ” is given by the act; and Gibson, C. J., says, “ that he will not say that this obscure clause might not be so construed, were it necessary to resort to it, as to shake off the imperfect remedy we were compelled to employ .as a substitute for a bill in equity” (Lewis v. Lewis, 1 H. 82). The possibility of a remedy at law against a trustee will not prevent a court of chancery from taking jurisdiction, and a continuing trust can only be satisfactorily treated in equity (1 Jones, 393).

The bill also discloses a case of fraud; and courts of equity in this State have concurrent jurisdiction with courts of law in all cases of fraud, actual or constructive. It matters not whether the fraud be practiced in obtaining the property, or making the contract, or in attempting to pervert it to fraudulent purposes afterwards; whether it be practiced on the party from whom the articles were obtained upon his creditors, or those for whose use and benefit they were given or deposited. The courts will be equally astute in preventing one man from defrauding another by perverting a contract to a different purpose from that intended, as in overreaching him in obtaining it. It is averred that a man who was indebted at the time, gave his goods to his son-in-law in trust for his children, when they are required for the payment of his- debts, and the administrator is proceeding for the use of creditors. No man who is largely indebted can give his goods away without value, or for a wholly inadequate consideration, when the effect is to deprive his creditors of their just debts. The trust in the present case is clearly asserted in the bill, and denied by the alleged trustee, who claims the articles as his own. If the allegations in the bill are true, and we must take them to be so in a question of jurisdiction, there is an attempt to defraud the cestui qui trustent, and the administrator sues as Avell on behalf of creditors, as to bring the avails into a course of distribution amongst the same parties for whom the defendant is trustee, after the debts are paid. Therefore, we cannot doubt the jurisdiction of a court of equity to investigate and prevent this alleged fraud and breach of trust.

It is contended that there is no evil complained of in this bill except such as could be remedied by a court of law, and therefore equity has no jurisdiction. Although every bill in chancery avers the want of adequate relief in a court of law, yet such averment is for the most part matter of mere form, as in very many cases both courts have concurrent jurisdiction. The extension of the remedy by actions at laAV to cases originally within the jurisdiction of equity, under our practice in this State, is no bar to equitable relief for the same cause (10 Barr, 273). The equitable jurisdic[177]*177tion given by the statute is valuable, and ought to be extended by every interpretation of which the words are susceptible (10 Barr, 274). And the acts should be liberally construed to extend the jurisdiction in furtherance of justice (1 H. 282). And to oust the jurisdiction of a court of equity, the party must not only have a remedy at law, but it must b efull, complete, and

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Bluebook (online)
1 Pears. 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ressler-v-witmer-pactcompldauphi-1860.