Rosenthal v. Perkins

55 P. 804, 123 Cal. 240, 1898 Cal. LEXIS 1020
California Supreme Court·Decided December 31, 1898·No. Sac. No. 346·Published·Cited by 18 cases

Opinion

BRITT, C.

The plaintiffs here sued one Brusie in a justice’s court, and procured a writ of attachment to he issued which was levied by the township constable on one hundred tons of hay, the property of Brusie. Afterward, the defendants in the present ease executed an undertaking in which was recited that Brusie had appeared in such action in the justice’s court, and [242]*242applied for an order to discharge the attachment “upon the execution of an undertaking in accordance with the provisions of sections 554 and 555 of the Code of Civil Procedure,” and that said court had fixed the amount of such undertaking at five hundred dollars; the instrument proceeded that in consideration of the release of the property and the discharge of the attachment the obligors undertook “that in case the said plaintiffs recover judgment in said action the said defendant will on demand redeliver such attached property so released to the proper officer, .... or that, in default thereof, the said defendant and sureties will on demand pay to the said plaintiff the value of the property released, not exceeding the sum of five hundred dollars.” Upon the execution of said bond the officer released the hay to Brusie; a few days later, and in less than a month from the time of the levy of the writ, said Brusie filed his voluntary petition in insolvency under the Insolvent Act of 1880, and in the usual course of such proceedings an assignee was appointed to whom was conveyed all his estate. By permission of the court entertaining the matter in insolvency the plaintiffs prosecuted their action in the justice’s court “for the purpose of fixing the liability of the sureties upon such undertaking” (section 45 of said act), and obtained judgment against Brusie for the sum of three hundred and seventeen dollars, which has not been paid. Demand was made on Brusie and his said assignee for the return of the property released as aforesaid, but without effect. The defendants also refused on demand to pay the value of the property or the amount of plaintiffs’ judgment; hence the present action on the said bond.

Section 17 of said Insolvent Act provides that the assignment shall vest the title to the estate of the insolvent in the assignee “although the same is then attached on mesne process, and shall dissolve any attachment made within one month next preceding the commencement of the insolvency proceedings”; defendants contend that the effect of this provision was to dissolve the attachment in Rosenthal et al. v. Brusie, and render impossible the return of the released property to the attaching officer, and hence to destroy the obligation of their undertaking. The investigator is impressed at the outset that this bond embodied [243]*243a contract that in the event of plaintiffs recovery against Brusie one of two alternative promises should be performed, viz., the released property would be redelivered for application to the payment of the judgment, or the sureties would pay the value thereof, not exceeding the amount of the judgment. The first of these became impossible through the act of the law set in motion by the default (failure to pay his debts and resort to insolvency) of the principal in the bond. Why should defendants not perform the other alternative which remains possible? “If an agreement is in the alternative, and one branch of the alternative cannot by law be performed, the party is bound to perform the other.” (Stevens v. Webb, 7 Car. & P. 60—a case in some essential features very like the present; and see Drake v. White, 117 Mass. 10; State v. Worthington, 7 Ohio, 171; Barkworth v. Young, 4 Drew, 1, 18, et seq.; 2 Parsons on Contracts, marg. p. 673, and notes in 8th ed.) As succinctly stated in our code: “If one of the alternative acts required by an obligation is such as the law will not enforce, or becomes unlawful, or impossible of performance, the obligation is to be interpreted as though the other stood alone.” (Civ. Code, sec. 1451.) Consequences which might follow destruction of the released property itself do not at present concern us.

The force of the impression produced by the aspect of the ease in outline is not diminished on minuter examination of the ground of the defense. It is clear, for reasons which need not be enlarged upon, that if at the time the proceeding in bankruptcy is instituted there is no attachment in force on which the proceeding can operate, if the attachment lien has already been discharged by a bond for that purpose, then the liability of sureties on the bond is not affected by the subsequent bankruptcy of their principal. (McCombs v. Allen, 82 N. Y. 114, and cases cited; Easton v. Ormsby, 18 R. I. 309; Insolvent Act, sec. 45, last proviso.) The mistake of defendants lies in supposing that the lien of the attachment in Rosenthal v. Brusie continued on the attached goods after they had been released to Brusie in consequence of the delivery bond. Our statute and the inferences which follow from the decisions of this court seem to put that question at rest. Upon the execu [244]*244tion of the bond, such as was given by defendants, “an order may be made releasing from the operation of the attachment any or all of the attached property (Code Civ. Proc., sec. 554); it is impossible that property can be “released from the operation of the attachment” if it yet remains subject to the attachment lien. It was assumed in Mullally v. Townsend, 119 Cal. 47, that the debtor who had obtained the release of property under this section could, by mortgaging it, create a lien which would be superior to the execution in the attachment suit; and in Metrovich v. Jovovich, 58 Cal. 341, that he could sell it; and in Risdon Iron etc. Works v. Citizens’ Traction Co., 122 Cal. 94, it was held that when property is released by order of court as exempt from levy, a dissolution of the attachment is, as to that property, accomplished. The decisions in other states where the practice allows a just analogy to be drawn with the case at bar confirm this view. (Waterman v. Treat, 49 Me. 309; 77 Am. Dec. 261; Waterhouse v. Bird, 37 Me. 326; Robinson v. Mansfield, 13 Pick. 139; Lawrence v. Rice, 12 Met. 538; Drake on Attachment, secs. 344, 357. See, also, Schuyler v. Sylvester, 28 N. J. L. 487; Bunneman v. Wagner, 16 Or. 433; 8 Am. St. Rep. 306.) In some jurisdictions the action in which chattels are attached has been regarded as one in rem as to those goods; as in Gass v. Williams, 46 Ind. 253, one of the cases most relied on by defendants; and in Bell v. Pearce, 1 B. Mon. 73. In that view of the nature of the action,there may be ground for holding that the property continues in the custody of the court by virtue of the action against it, even though the debtor lawfully regains possession. The theory of the remedy of attachment with us is different; the property does not become a res. (Low v. Adams, 6 Cal. 277.) We are satisfied that no lien of the attachment persisted on the goods in this case after the release to the owner.

It is said that no order of the justice’s court for the release of the attached property is shown to have been made. The goods were in fact released as a consequence of the bond given by defendants, and it is not quite clear to us that they are in position to urge this objection. (Palmer v. Vance, 13 Cal. 553.) It is sufficient, however, to say that the record does not show that an order directing the release of the property was not made; the re[245]

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Rosenthal v. Perkins, 55 P. 804, 123 Cal. 240, 1898 Cal. LEXIS 1020 (Cal. 1898).

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