Saginaw County Savings Bank v. Duffield

122 N.W. 186, 157 Mich. 522, 1909 Mich. LEXIS 1038
CourtMichigan Supreme Court
DecidedJuly 6, 1909
DocketDocket No. 120
StatusPublished
Cited by5 cases

This text of 122 N.W. 186 (Saginaw County Savings Bank v. Duffield) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saginaw County Savings Bank v. Duffield, 122 N.W. 186, 157 Mich. 522, 1909 Mich. LEXIS 1038 (Mich. 1909).

Opinion

McAlvay, J.

Complainant was a judgment creditor of Thomas Pitts and Frank W. Wheeler to the amount of $4,054.06 damages and costs of suit taxed at $32.20 upon a judgment rendered in the Wayne circuit court in its favor January 5, 1906. An execution, duly issued for the collection of this judgment, was returned unsatisfied. On or about July 10, 1906, the judgment creditor’s bill in this cause was filed against both defendants, asking for a sworn answer from each, and for discovery of property to apply to the satisfaction of the judgment, and praying for an injunction and a receiver. Subpoena and injunction were issued and personally served upon both defendants. On November 20, 1906, defendant Pitts paid $2,000, which was credited. The balance upon the judgment remains unpaid. On April 25, 1907, the bill was taken as confessed by each of the defendants. Copies of the bill of complaint and notice of the application to appoint a receiver were afterwards served on defendants, Pitts and Wheeler, and upon a hearing Charles E. Hilton was duly and regularly appointed receiver of all the property of both Pitts and Wheeler. He qualified by giving the required bond, and entered upon the duties of his office. A summons was issued by the circuit court commissioner, directing each of these defendants to appear to be examined and make discovery, as was provided in the order appointing a receiver. [524]*524It was served on defendant Pitts, who was in poor health, and who through his attorney appeared and obtained adjournments of the hearing from time to time until in July, 1907, when he was compelled to leave the State on account of his health. He died absent from the State October 28, 1907. He left a will, which appointed defendant Duffield his executor. The cause was revived, and proceeded against defendant Wheeler and the executor of Pitts. Complainant filed with the commissioners on claims of the Pitts estate its claim, setting forth its history and the proceedings had in this cause, claiming that by reason thereof it had a lien upon the assets of said estate prior' to other creditors, and that its claim should be allowed as a preferred claim. Defendant Duffield filed a plea in abatement to the bill of complaint. The stipulation allowing the amended plea provided that upon filing the same the cause might be set for argument.

“And, the facts stated in the bill and plea being stipulated hereby, the court may make a final decree in the cause, and determine and declare whether or not the complainant has a prior and paramount lien on the assets of the estate of Thomas Pitts, deceased, by reason of the proceedings had and taken on its behalf in this cause.”

Under this stipulation a final hearing was had, and a decree granted, sustaining the contention of complainant, decreeing and establishing that by the proceedings taken complainant acquired a good and valid lien upon all the property of every nature belonging to the defendants, Pitts and Wheeler, to secure the payment of the judgment indebtedness to said complainant, including all costs, and the receiver’s costs herein, which lien continues a prior lien thereon as against the general creditors of the estate of defendant Pitts, and decreed and established said lien, and ordered that the same be certified to the probate court as a judicially established and allowed claim against the estate of defendant Pitts, and that an execution might issue against the property of defendant Wheeler. It was further decreed that defendant Duffield [525]*525as executor discharge such lien out of the assets of the estate of defendant Pitts, or that he deliver to the receiver the assets of said estate, now or hereafter in his hands, sufficient to satisfy the amount of this lien, and further authorized the receiver to institute all necessary proceedings'to insure the recovery of any assets of said estate to satisfy the same, and ordered a copy of said decree to be filed in said estate in the probate court. From this decree the executor has appealed.

The questions raised by him before this court are:

“First. Had the complainant established a lien at the time of the death of Pitts on all Ms property of every name and nature, or did the cause abate as to the executor as the representative of his other creditors ?
“Second. In case the court finds such a lien to have been established, can the receiver take all the property of the estate out of the hands of the executor, and out of the control and jurisdiction of the probate court, and into his possession, and collect the complainant’s debt therefrom ? ”

Defendant executor urges that no lien was established at the time of the death of defendant Pitts upon his property by the proceedings relied upon, and contends that the rule had been settled by this court to that effect in the following cases: Jones v. Smith, Walk. Ch. (Mich.) 115; German American Seminary v. Saenger, 66 Mich. 249 (33 N. W. 301); Beith v. Porter, 119 Mich. 365 (78 N. W. 336, 75 Am. St. Rep. 402). It must be conceded that, if the case at bar cannot be distinguished from the cases cited, complainant has no lien upon any of the assets of this estate, and the decree in his favor must be reversed and the bill dismissed. The proceedings in this case had proceeded upon personal service, duly had upon both defendants, of the subpoena and injunction. The bill had been taken as confessed by both. The receiver was appointed after personal service of the notice of the application and of copies of the bill of complaint, and immediately after such appointment the receiver qualified and ■entered .upon the duties of his office. The summons to [526]*526appear for examination and disclosure was duly served on defendant Pitts, and by request of his attorney, on account of his sickness, adjournments were had. He never recovered, and no disclosure was made.

The case of Jones v. Smith, supra, was a petition to revive a judgment creditors5 suit against the personal representatives of a deceased debtor, and it was held that the filing of a judgment creditor’s bill, without answer or the appointment of a receiver, creates no lien upon the debtor’s property, and the case may not be revived against the personal representative. The court held that this was so because “the suit had not progressed so far as to create a lien.” The court said:

“ The statute does not make the filing of the bill a lien on the property of the debtor. It authorizes the court to decree a satisfaction of the amount remaining due on the judgment out of any personal property, money, or thing in action belonging to the debtor, and arms the court with power to compel a discovery of the debtor’s property, and to prevent his transferring it.’5

In German American Seminary v. Saenger, supra, the case of Jones v. Smith was cited and approved. The question decided was whether a lien had attached in the case of a judgment creditor’s bill where no injunction or receiver had been prayed for or granted, and whether the action survived. The court said:

“The usual practice in suits by judgment creditors is to obtain in due season, where the facts warrant it, the appointment of a receiver, who is to collect and apply the assets. The statute does not, and the rules do not, declare any lien to be created by merely filing a creditor’s bill.

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Cite This Page — Counsel Stack

Bluebook (online)
122 N.W. 186, 157 Mich. 522, 1909 Mich. LEXIS 1038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saginaw-county-savings-bank-v-duffield-mich-1909.