Rhodes v. Cousins

27 Va. 188, 6 Rand. 188, 1828 Va. LEXIS 13
Supreme Court of Virginia·Decided March 15, 1828·Published·Cited by 11 cases

Opinion

Judge Carh

delivered his opinion.

The bill presents this rase: that in the winter of 1820-21, Cousins 'endorsed for Grymes (a grocer) an accomodation note, to be discounted at the Bank, for $ 1,500: that the note had been renewed from time to time, and the one last given would become due in about four weeks: that the Plaintiff will, no doubt, have to take up the note when'it falls due: that the said money was borrowed to pay debts, which Grymes contracted in supplying his store with groceries: that a few days before,he had been surprised to discover in a Petersburg paper (where the parties live,) an advertisement of the stock of goods belonging to Grymes, to be sold on the 11th of September, by a certain Je>\ Rhodes, an Englishman, having no fixed residence here, and who liad avowed his intention of returning in a short lime to England: that, on enquiry of Grymes, he told him, that being a secret partner, Rhodes had obtained a Deed of Trust from him by deception and fraud; and under it, was about to sell the goods. He charges, that Rhodes has been a sleeping partner since the last fall: that he has reason to believe that he will leave this Country with all his effects, if not prevented, before the note becomes due, previous to which time, the Plaintiff can have no redress at Law: that Grymes is insolvent: that the goods are in possession of Moore an auctioneer. The prayer of the bill is, that an Injunction issue to prohibit a sale, or a return of the Moore to the other Defendants; or to stay $1,500 in the hands of Moore, if a sale be thought proper; or to grant a Ne Exeat.

Taking this matter up simply upon the case made by the bill, it is clear to me, that the Plaintiff had no right to the aid of Equity, cither by way of Injunction or Ne Exeat.

1. As to the Injunction. It is well settled Law, that none hut a Judgment-creditor can have the assistance of Equity to control, prevent, or interfere with, in any way, the disposition which a debtor may choose to make of his property. He may destroy it, give it away, convey it fraudulently, or sell it and waste the money, and no creditor at large can stop him by Injunction. A creditor must have proceeded as far as he can at Law. If he means to affect the land, he must have a Judgment, and take his elegit. If the personalty, there must be Judgment and execution issued; and he must show in his bill that he has done this, or it may be demurred to. See Mitf. Pl. 114-15; Angel v. Draper, 1 Vern. 399; Shirley v. [190] Watts, 3 Atk. 200; Bennett v. Musgrave, 2 Ves. sen. 51; Balck v. Wastall, 1 P. Wms. 451; Cooper's Equ. Pl. 149; see also Wiggins v. Armstrong, 2 Johns. Ch. Rep. 144. That case was thus; Plaintiff had two notes on D. to a large amount, on which I), confessed a Judgment to a greater amount to another person. The bill charged a fraudulent collusion: that the Judgment was voluntary and without consideration, and with intent to defraud the Plaintiff; and he prayed an Injunction against proceeding on the Judgment by execution. An Injunction was granted. No answer was put in; but a motion was made to dissolve, on the ground that the Plaintiff, not being a Judgment-creditor, had no lien, on the property of the-debtor, and no right to question the Judgments. The Chancellor reviews the cases with his usual care, and comes to the conclusion, that a creditor at large, and before Judgment and execution, cannot be entitled to the interference of He “The reason of the rule seems to be, that until the creditor has established his title, he has no right to interfere; and it would lead to an unnecessary, and perhaps, a fruitless and oppressive interruption of the exercise of the debtor’s rights. Unless he has a certain claim upon the property of the debtor, he has no concern with his frauds.”

The same doctrine is again discussed and considered as settled in 2 Johns. Ch. Rep. 284, 4 Do. 671, 682. This Court, also, in the case of Chamberlayne v. Temple, 2 Rand. 384, lays down the doctrine in the same way, and strongly and forcibly illustrates the mischiefs and inconveniences of a contrary proceeding.

In the case before us, the Plaintiff not only had no Judgment, but he was not even a creditor. True, he had endorsed a note for Grymesj but, he might never be called on to pay it; or called on, he might not be able to pay it; and in either case, he could have no demand on Grymes. What right, then, had he to claim the interference of Equity, to disturb the arrangement made between Grymes and Rhodes; to forbid the sale of the goods; and to take them wholly, from the possession of the owners, for an indefinite space of time?

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Rhodes v. Cousins, 27 Va. 188, 6 Rand. 188, 1828 Va. LEXIS 13 (Va. 1828).

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