Reynolds Corp. v. Knoxville Lithographing Co.

138 Tenn. 287
CourtTennessee Supreme Court
DecidedSeptember 15, 1917
StatusPublished
Cited by2 cases

This text of 138 Tenn. 287 (Reynolds Corp. v. Knoxville Lithographing Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reynolds Corp. v. Knoxville Lithographing Co., 138 Tenn. 287 (Tenn. 1917).

Opinion

Mb. Chief Justice Neil

delivered the opinion of the Court.

The Knoxville Lithographing Company having sued the Reynolds Corporation in two actions before a justice of the peace of Sullivan county, the latter company, before trial had at law, filed the present bill in the chancery court of Sullivan county, for the'purpose of enjoining the further progress of the suits mentioned. The chancellor granted the injunction, but, in his fiat, omitted to require the complainant to confess judgment. After the injunction was served, the defendant appeared in the chancery court and made a motion in the following language:

“Comes the defendant and moves the court to dissolve the injunction heretofore granted and issued in this cause until, and unless, the complainant shall confess judgment in the suits at law sought to be enjoined herein.”

The chancellor granted this motion and ordered that, unless the- complainant should, on or before the 4th day of September, 1916, confess judgment in the two suits for the several demands sued on, together with costs, the injunction should stand dissolved; but that, in case the complainant should confess judgment on the two demands, then the injunction should operate to stay execution on such confessed judgments until the further order of the court. .The order then recited that the Reynolds Corporation appeared by its solicitor and confessed judgment on each, of the demands, [291]*291and agreed that the justice of the peace in question, J. P. Rader, might enter such judgments in the two causes pending before him, but that execution should be stayed by the injunction in the present cause as previously ordered.

After having secured this order, counsel for defendant then filed its demurrer to the bill.

The bill charged that one of the suits was based on an account for $262-08, for certain lithographing work which the defendant undertook to furnish to complainant, and the other was an account for $119.21 arising out of an order for “35,000 sheets, No. 16 speedway, and labor and profits on a canceled order for 500,000 coupons.” The bill denied any indebtedness for the two .sums, charging, with respect to the first, that the work did not come up to the sample furnished when the contract was awarded, and, likewise, that the defendant had acted in such an arbitrary and unbusiness-like manner that the complainant could not afford to do business with it as to this matter. As to the second item the bill did not state the objection to it further than a general allegation that the complainant did not owe this account, adding that reasons would be made to appear at the trial.

It is further alleged that the two amounts represented two items on the same account, and that the complainant was therefore being annoyed with a multiplicity of suits about the same matter. It was also alleged, with respect to the first matter, that its proper solution depended upon expert testimony as to the [292]*292nature and character of the paper to he engraved, and the quality of that furnished as' compared with that which the defendant had contracted to furnish.

There were several grounds of demurrer stated, but they all went to the point that the court of law had first acquired jurisdiction, and no sufficient reason was shown in the bill to justify a defeat of that jurisdiction by a suit in equity.

The learned chancellor, and the learned court of civil appeals, when the case reached the latter court, overruled the demurrer, on the ground that the defendant, by its motion to dissolve the injunction, which we have just copied, had elected to submit to the jurisdiction of the chancery court, and was estopped to rely upon the demurrer. Accordingly the demurrer was overruled, an a special appeal was granted by the chancellor under the statute applicable to that'subject, and the case was determined by the court of civil appeals in the manner just indicated. It is now before us on writ of certiorari.

We think that both courts were in error.

It is the duty of a judge or chancellor, granting an injunction to restrain the prosecution of an action at law, to exact of the complainant a confession of judgment in the law case as a condition of granting an interlocutory order for an injunction, retaining, however, control of the judgment so confessed, in order that no injustice may be done to either party on the final decision of the injunction suit. The purpose of this rule is to prevent the complainant’s dismissing [293]*293his suit after long litigation in eqnity, leaving the plaintiff at law to then resume his litigation. The principle is stated, and anthorities cited in Gibson’s Suits in Chancery, Revised Edition, section 814, text, and note 29; Chadwell v. Jordan, 2 Tenn. Ch., 635; Mathews v. Douglass, Cooke, 136, Fed. Cas. No. 9276; Haynes v. Bank, 106 Tenn., 425, 61 S. W. 775. Not having required the confession of judgment at the outset, the chancellor rightly sustained the motion when the point was called to his attention, and we are unable to see how the status of the defendant was in anywise different from that it would have occupied had the confession of judgment been required when the fiat for injunction was granted. It could not be said that the granting of such a fiat would bar the defendant from its right of demurring to the bill. How the failure of the chancellor to grant the order at the proper time could operate as a reason for denying the defendant its legal right to make defense upon a subsequent rectification of the chancellor’s oversight, it does not appear. Or, to state the matter differently, it is not apparent how the chancellor’s failure to require the confession of judgment at the beginning could legally so operate as to embarass the defendant in its subsequent effort to have done what should have been done at the beginning ; the defendant not being at fault at any stage of the proceeding. To hold the defendant estopped to assert its right to file a demurrer, under such circumstances, would-be equivalent to a decision that the error of a court committed against a litigant, without [294]*294fault 01* negligence of the latter, could lawfully result in depriving such litigant of a legal right. It needs no more than a mere statement of the contention to show its unsoundness.

It is urged in support of the ruling- of the chancellor, and of the court of civil appeals, that the defendant, on making such a motion, must he considered as having submitted to the jurisdiction of the court, and that having done so it could not thereafter demur for want of jurisdiction; that otherwise the defendant would he permitted to occupy antagonistic positions. This argument arises- out of a failure, as we think, to rightly discriminate between jurisdiction of the person and jurisdiction of the subject-matter. It is indeed true that by coming into court and making such a motion the defendant submitted to the personal jurisdiction of the court over it, but this was not tantamount to submitting to the jurisdiction of the court over the subject-matter of the controversy. The defendant, by process served on it, was called to come into the chancery court and defend its rights. As a preliminary thereto,' it sought to have' the chancellor safeguard those rights in the manner in which the law required of him. Then, as the next- step in its defense, a demurrer was interposed, raising the point that the law court first obtained jurisdiction, and was entitled to retain the cases. This was a matter of defense.

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Bluebook (online)
138 Tenn. 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-corp-v-knoxville-lithographing-co-tenn-1917.