Rison v. Powell

28 Ark. 427
CourtSupreme Court of Arkansas
DecidedDecember 15, 1873
StatusPublished

This text of 28 Ark. 427 (Rison v. Powell) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rison v. Powell, 28 Ark. 427 (Ark. 1873).

Opinion

Searle, J.

This was an action in equity brought in the Jefferson circuit court, to the May term thereof, 1867, by the appellant. In his complaint, he alleges that John C. Ward & _Co., being seized in fee of certain lands situated in Jefferson county, on the 24th of January, 1868, conveyed them, together with a large amount of personal property, to Jesse R. Powell, one of the appellees herein; that Ward & Co. were insol-vent or in contemplation of insolvency, and being largely indebted to Powell, made these conveyances to him for the purpose of making him a preferred creditor; that Powell knew of their failing circumstances, and that the conveyances were made in fraud of the provisions of the act of congress, entitled “ an act to establish a uniform system of bankruptcy throughout the United States,” approved March 2, 1867.

The appellant further alleges that on the 20th of April, 1868, certain creditors of Ward & Co., filed their petition in the United States district court for the eastern district of Arkansas, against the said Ward & Co.,'stating that they had committed acts of bankruptcy, among which especially were the conveyances to Powell; that on the 24th day of October, 1868, upon said petition, by the judgment of said district court, Ward & Co. were adjudged bankrupts, and that the appellant, by deeds of assignment from the register in bankruptcy, was made assignee of all the property, real and personal, of said Ward &. Co., with all their deeds, books, etc. And the appellant prays that said conveyances to Powell be set aside and cancelled as having been made in fraud of bankrupts’ creditors; that he be' quieted in his title to the property against the claims of any and all the appellees, and that an account be taken, etc. The appellees answered and moved the court to dismiss the complaint for want of jurisdiction. The court sustained the motion and dismissed the complaint, and from this judgment this appeal was taken.

The question presented for determination is, Had the circuit court of Jefferson county jurisdiction o£ this cause?

We apprehend that the present constitution of the state doesnot change the jurisdiction of circuit courts. (Article VII, section 5.) The circuit courts, then, have jurisdiction of “all civil cases not cognizable before justices of the peace.” Const of 1836, art. VI, sec. 3; Gould’s Digest, ch. 47, sec. 7. It will not be disputed, therefore, that circuit courts, under the limitations above indicated; have jurisdiction ordinarily of cases where the title of property, real and personal, is in question.

But the inquiry suggested more especially for our consider-. ation is much narrower, for the allegation upon which the appellant’s case rests is, that “Ward & Co., were largely indebted to Powell, and made the conveyances to give him a preference Qver his other creditors,” and, “therefore,” they say “ they were fraudulent under the provisions of the bankrupt law, and should be set aside.” Now, neither by the common law nor by the statute laws of this state is a debtor prohibited from preferring a creditor when such preference is made in good faith. Only in the bankrupt law is such preference denied. It is, therefore, insisted by appellee’s counsel that the state courts have no jurisdiction of this cause, because the title to the property in controversy is to be determined, not by the laws of this state, properly so-called, which allows debtors to prefer creditors when it is done in good faith (see Doswell v. Adler et al., ante, p. 82), but by the provisions of the bankrupt law of congress, which makes such preference ipso facto fraudulent when the conveyance is made within certain prescribed limits previous to the institution of proceedings in bankruptcy. They also insist that the state courts have no jurisdiction, because the property belonging to an assignee in bankruptcy, as such, is exclusively under the control of the United States district court. The sole inquiry, thus narrowed, is as to whether or not a circuit court of the state has jurisdiction of an action brought by an assignee in bankruptcy to set aside and cancel conveyances of property for fraud solely under the bankrupt law of congress.

As to whether the title to property be derived through the laws of the United States or those of the state, cannot be a question of jurisdiction. This proposition gives us a rule of general application, and is not difficult, we think, of substantiation. As above intimated, the circuit courts of this state, with certain exceptions in favor of courts of j ustices of the peace, have jurisdiction ordinarily of controversies regarding the title to..property, both real and personal, and they will pass upon the validity of the titles thereto, whether acquired by or under the laws of the United States or those of the state. Indeed, as regards real property, all the titles thereto come in the first instance by the laws of the United States. In Ashley, Ex’r, etc., vs. Cunningham, 13 Ark., 296, which was an action in equity, both parties claimed title alone under the laws of the United States. Very many such cases might be cited. Nor is there anything unreasonable in this. In the adjudication of causes coming within their jurisdiction, the state courts are as much bound by the laws of the national government as by their own state laws. Indeed, where there is a conflict between the former and the latter, the latter must give way, as the former in such cases are paramount. State judicial officers are bound by their official oaths to observe the laws of the general government, and they do, as all must know, constantly construe and enforce them in the state tribunals; and the only restraint placed upon the state tribunals is by the twenty-fifth section of the judiciary act of congress, passed in 1789 (1 U. S. Statutes at Large, p. 85).

It is asserted by counsel that the national government cannot control the jurisdiction of the state courts by adding anything to them. This, of course, no one will presume to deny. But have not the circuit courts of this state always had jurisdiction of causes involving titles to property ? And is it not their duty to pass upon such titles, by whatever laws derived ? If congress pass any valid law affecting such titles, this certainly does not enlarge the jurisdiction of the state courts, but only furnishes a new rule of decision. In this way congress may add new questions of controversy to be adjudicated upon by the state courts. Do not the state laws do the same thing in the national courts? They are as much bound by the state laws, as far as valid, as the state courts are by the laws of the national government. But this, we apprehend, has nothing to do in determining jurisdiction. Mr. Hamilton, upon the judiciary powers of the national government, said that, “the judiciary power of every government looks beyond its own local and municipal laws, and in civil cases lays hold of all subjects of litigation between parties within its jurisdiction, though the causes of dispute are relative to the laws of the most distant part of the globe. Those of Japan, not less than those of New York, may furnish the objects of loyal discussion to our courts,” etc. (see No. 82 Federalist.) Mr. Dana, in Y American Law Review, page 615, says: As we have seen, if a state enlarges the landed rights of married women or aliens, the national courts are obliged to accept this practical increase of business and the new application of its process. Such a state law does not alter their jurisdiction or control their process.”

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Bluebook (online)
28 Ark. 427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rison-v-powell-ark-1873.