Scarlett v. Hicks

13 Fla. 314
CourtSupreme Court of Florida
DecidedJuly 1, 1869
StatusPublished
Cited by7 cases

This text of 13 Fla. 314 (Scarlett v. Hicks) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scarlett v. Hicks, 13 Fla. 314 (Fla. 1869).

Opinion

WESTCOTT, J.,

delivered the opinion of the court.

This bill is brought by one creditor of an insolvent estate against the sheriff and another creditor of the same estate, who, since the filing of the suggestion of insolvency in the County Court, and the publication of notice calling the creditors to that jurisdiction, has obtained a judgment at law; has caused a fi. fa. to issue, and is proceeding under the process at law to subject the assets to sale to satisfy his judgment. In accordance with the prayer of the bill, an injunction was granted. Subsequently, upon the motion of the defendants, this injunction is dissolved, and from the order dissolving the injunction this appeal is prosecuted by the plaintiffs. Whether this order ought to be sustained is, therefore, the question for our consideration. The grounds upon which it is sought to be justified are numerous, involving many questions of practice, as well as various matters connected with the very interesting subject of the administration of the assets of insolvent estates.

The first ground upon which it is contended that the injunction was properly 'dissolved, is, that there is no equity in the bill—one creditor of an insolvent decedent having no right to enjoin execution of a judgment at law obtained by another creditor after suggestion of insolvency filed in the County Court and notice calling in the creditors. Whex’e the estate is solvent, it is true that one simple coxxtract [319]*319creditor has no equity to enjoin proceedings at law by another creditor against the legal representative of the decedent. It is apparent, however, that authorities to this effect do not settle the question here involved. Creditors, undej* the circumstances of this case, occupy under the statute a relation to each other analogous to that which they occupy after a decree to account upon a general creditor’s bill. In such a case, each creditor is entitled to appear before the master, and may there contest the claim of any other creditor. 1 Craig & Phillips, 48, 56. He goes to the master’s office with an equity which enables him to become an actor, even as against his co-plaintiff in the same bill, so far at least as he desired to contest there his claim or debt.

Under the provisions of the statute regulating the administration of insolvent estates in this State, upon the filing of the written suggestion of insolvency in the County Court, all the creditors are called into that jurisdiction for a final settlement of the estate, in accordance with the provisions of the act fixing the priorities and standing of the respective creditors or claimants. Under the provisions of this statute, each creditor or claimant has a right to contest the claim or demand of any other claimant or creditor, although the debt is admitted by the administrator. So we see that, after suggestion of insolvency is filed, the creditor having filed his claim in the County Court, becomes invested with the right to contest the claim of any other creditor, and this is true, even if the legal representative of the decedent admits it.

In this case the debt, as against the administrator, has been established by a suit at law, nor does the creditor deny that the debt is a valid claim against the estate. His proposition is, that upon the filing of the suggestion of insolvency and notice by the County Court, no creditor can proceed at law further than to establish a disputed claim by a judgment at law, and that if upon the rendition of such judgment the court of law awards a fi. fa., or the creditor obtains a fi. fa., it is void, being contrary to and a fraud upon the statute, [320]*320which provides that upon the rendition of a judgment, “ the same shall be filed with the County Court for pro rata payment.” He'insists that he is entitled to the process of a court of equity to enjoin proceedings by this judgment creditor, which are contrary to the statute. It is clear that the effect of this judgment is only to establish the debt as against the legal representative. It constitutes-no lien upon the real estate of the decedent, and the claim is entitled to no priority by virtue of the fact that it has passed into judgment. After a decree upon a. general creditor’s bill, not only the executor but a creditor, or even a legatee, could upon motion alone enjoin proceedings at law upon another creditor, 4 Eng. Chy., 123 ; 1 Jac., 123. Under these circumstances, a court of equity, having custody of the assets, would enforce the rule of equality ,in their administration, and would prevent the acquisition of liens at law.

The legal rule for the administration of these assets is the rule of equality, and the court of law would, upon proceedings by the defendant in the judgment at law, prevent the issuing of an execution, and if issued, would direct its return. The creditor not being a party to the judgment, the court of law cannot give him relief. He must seek a court of equity, where equity will follow the rule of law, which is equality, and will administer the necessary relief. Having this right under the express terms of the statute, and being vested with such equities as are stated above, the only question remaining to he considered to dispose of this branch of the' subject is, does the fact that the assets are in the County Court, to be there administered by that court, prevent the chancellor from enjoining the judgment at law ? We think not. The County Court cannot enjoin a judgment of the Circuit Court, and in the absence of this power in the County Court, we can see no reason why the chancellor may not enjoin these proceedings without taking the administration of the assets into his own jurisdiction. Under the organization of the judicial system of the State of Morth Carolina, the [321]*321Superior Court, in the matter of the administration of the assets of decedents, occupied in many respects to its Probate Court the same relations as the Circuit Court in our system does to the County Court. Speaking of the jurisdiction of these two courts, the Supreme Court of North Carolina, in a recent case, remarked : “ It may, in the course of proceedings in the Probate Court, become necessary, in order to protect the rights of one party Or the other, to have an injunction, which the Probate Court cannot order. In that case, the party must of necessity apply to the Superior Coui’t, but such an application would not oust the jurisdiction of the Court of Probate.” 64 N. C., 177. So in this case the Circuit Court had jurisdiction to grant the injunction without removing the administration of the assets to its jurisdiction, or if the plaintiff had so desired, we do not see why a court of chancery could not, upon a general creditor’s bill, have taken the administration of the assets into its own jurisdiction. This question, however, is not involved here. Our conclusion, therefore, is, that this creditor has an equity which entitled him to this relief, and as it could not be granted by the County Court, the Circuit Court properly administered it.

The next ground upon which it is sought to sustain the order dissolving the injunction in this case is, that the rules of chancery practice in the Circuit Court of the United States are the rules controlling the practice in the Circuit Court in this State; that these rules provide that when an injunction is awarded in vacation, it shall, unless previously dissolved, continue until the next term of the court, or until it is dissolved by some order of the court, and that as a term intervened in this case, and no order was made continuing the injunction, it stood dissolved.

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Bluebook (online)
13 Fla. 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scarlett-v-hicks-fla-1869.