Rice v. Tarver

4 Ga. 571
CourtSupreme Court of Georgia
DecidedMay 15, 1848
DocketNo. 60
StatusPublished
Cited by15 cases

This text of 4 Ga. 571 (Rice v. Tarver) 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
Rice v. Tarver, 4 Ga. 571 (Ga. 1848).

Opinion

[582]*582 By the Court.

Nisbet, J.

delivering the opinion.

By referring to the facts of this case, it will he seen that, upon motion, the Circuit Judge dismissed the complainant’s bill, as to two of the defendants, to-wit: those residing in the county of Jones and in the county of Houston. It was conceded, in the argument, that the bill was dismissed, as to them, because the Court had not jurisdiction over them, in the county of Twiggs, where the litigation was conducted. The question made, is whether the defendants, residing respectively in the county of Jones, and the county of Houston, could, in a suit in Chancery, be required to answer in the county of Twiggs, where another ofthe defendants, II. II. Tarver, resided.

[1.] In Gilbert vs. Thomas, et al. 3 Kelly, 578, this Court determined, that Equity cases are not embraced in that clause of the Constitution which requires defendants, in all civil cases, to be sued in the counties where they reside. There is, therefore, no constitutional objection to the jurisdiction claimed over the defendants resident in the counties of Jones and Houston. I shall not attempt to review or strengthen the argument upon this point, deeming such attempt wholly useless. Our confidence in the correctness of the decision in Gilbert vs. Thomas, has been confirmed by the argument of this cause. A contrary decision would restrict within narrow limits, the jurisdiction of Chancery, and greatly abridge the beneficent utility of that branch of the Judiciary. Upon sufficient reason, upon authority and upon all expediency, we are satisfied that the Constitution received its true exposition in that case.

But because Equity causes are not within ihe limitations of the Constitution, it does not follow that a complainant in Equity has a rambling commission, (to use the language of the counsel for the defendant in error,) to bring his suit in any county in the State, where he may choose to locate it. Nor does it follow, that where the suit is properly located, the complainant may draw defendants out of their own counties necessarily and universally, to answer in the county where the suit is brought.

[2.] We hold that the inception of the suit in Equity, must be, according to the spirit of our Constitution and laws, and according to the usage of our Courts of Chancery from the beginning, iii [583]*583some one county where the Court has jurisdiction. By reason of the residence of a defendant, or on some other account, the Court must have jurisdiction where the litigation is pending. The first matter of inquiry, will he, whether the Court had jurisdiction of this suit in the county of Twiggs. If it had, then occurs the main question, whether in Twiggs the Court had jurisdiction over the non-resident defendants. If it had not, it is manifest that those non-resident defendants could not he called to answer there. It is not made a question, directly, in this writ of error, whether the Court had jurisdiction over the Bank of Columbus, another defendant to the suit in Twiggs. It will he necessary, notwithstanding, in order to a fair discussion of the points made, to inquire into that also.

First, then, was this bill properly brought, in the county of Twiggs ? The bill is brought by the Receiver of the Ranh of Macon, and charges that that Bank, being insolvent, fraudulently assigned to the Bank of Columbus, which claimed to be a creditor, a schedule of notes, amounting to some twenty or thirty thous- and dollars. Among these notes, one was made by Watson, Wimberly & Co., (the defendants who resided in the county of Houston,) and indorsed by H. H. Tarver; and one other made by John Martin, who resided in the county of Jones — that the title to these notes is in the Bank of Macon or the Receiver — that the Bank of Columbus had collected a considerable amount from the schedule of notes so transferred — that upon the notes made by the defendants, Watson, Wimberly Co., and indorsed by H. IT. Tarver — and upon that made by the defendant, Martin, suits had been instituted by the Bank of Columbus in the counties respectively, of Twiggs, Jones and Houston, and were now pending ; that the effects thus fraudulently transferred, rightfully belong to the Receiver, for distribution, rateably, among the bill holders of the Bank of Macon ; and that by the contract of transfer between that Bank and the Bank of Columbus, what remained of the transferred effects, after paying the debt due the latter institution, was to be returned to the former, and that after paying that debt, there remained a large balance. The bill prays that the suits in' Twiggs, Jones and Houston be enjoined; that the defendants thereto, be enjoined from paying their notes to the Bank of Columbus; that it be decreed to pay to the complainant its [584]*584collections upon the transferred notes ; that the transfer itself be annulled, and for general relief.

Upon the case made by the bill, H. H. Tarver, resident in the county of Twiggs, was a debtor to the complainant. The transfer carried the legal title of the note, upon which he was indor-ser, to the Bank of Columbus, as also the possession. I cannot see why, these things being so, it was not competent for the Receiver to sue Tarver in the county of his residence, for the purpose of asserting its equitable interest in that note, and by setting aside the transfer, enforce its collection. For such a purpose, Chancery had jurisdiction in that county. Again, the Bank of Columbus had sued Tarver at Law, upon the note in that county. To enforce the rights of the complainant, an injunction of that pending suit was necessary, and was accordingly prayed.

The jurisdiction attached in the county of Twiggs, where the Columbus Bank had instituted suit, by way of injunction, not alone upon that Bank, to restrain its farther prosecution of that suit, but also, by way of injunction upon the defendant, Tarver, to restrain him from paying the debt. By the fraudulent transfer of the notes to the Columbus Bank, it had acquired an unconsei-entious advantage over the Bank of Macon, and its creditors. The bill charges that the transfer was made by a person purporting to act as President'of the Macon Bank, without authority so to act. To make that fraudulent transfer available, the suit was brought against Tarter. This fraud was not examinable at Law, by the Bank of Macon. She was no party to the suit at Law, and could not become a party. To assert her rights — to assert the Receiver’s rights in behalf of her creditors, it was necessary to invoke the aid of a Court of Chancery, to investigate the alleged fraud, and until that could be done, to enjoin the parties in the suit at Law. The injunction process would be returnable in the county where the litigation was pending; it would spring out of that litigation, and operate on the parties in the forum, where the suit was brought. The Court, in the county of Twiggs, acquiring jurisdiction by way of injunction, would retain it for relief. 1 Daniel’s Ch. Practice, 263, 4. Anderson vs. Lewis, 1 Bro. 429. Eden on Injunctions, 14, 15, 78.

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Bluebook (online)
4 Ga. 571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-tarver-ga-1848.