Scholze v. Steiner

100 Ala. 148
CourtSupreme Court of Alabama
DecidedNovember 15, 1893
StatusPublished
Cited by15 cases

This text of 100 Ala. 148 (Scholze v. Steiner) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scholze v. Steiner, 100 Ala. 148 (Ala. 1893).

Opinion

STONE, C. J.

The appeal in this ease is from the decree of the Chancery Court overruling a motion to dismiss the bill for want of equity, and also a motion to dissolve the injunction on the denials of the answer and for want of equity in the bill. No other questions are presented for review in this court. The facts set forth in the bill are, in brief, as follows : On the 5th day of September 1889, Allen & Taylor recovered a judgment against Herman Scholze, in the City Court of Birmingham for the sum of $105.67 and costs of suit. On June 3rd, 1890, Herman Scholze recovered judgment in the City Court of Birmingham against Emil Lesser for $322.30 and costs of suit, and immediately thereafter transferred the same to Bobert Scholze. In June 1890, after the above mentioned transfer and without notice thereof, Lesser purchased the judgment of Allen & Taylor against Herman Scholze. The judgment in favor of Herman Scholze against Emil Lesser was appealed by the latter to the Supreme Court, appellees, Steiner and Levi, becoming sureties on the appeal bond, with interest, damages and costs.

At the fall term 1890, of the Circuit Court of Jefferson county, the Francis-Chenoweth Hardware Company recovered judgment against Herman Scholze for $281.88 and costs of suit, on which a writ of garnishment was sued out, (after the Lesser judgment was affirmed), and was served on appellees Steiner and Levi. The garnishees answered setting out the facts as hereinabove detailed and suggested Bobert Scholze as a claimant. After the filing of their answer the garnishees by their attorney, applied to the attorney of the Francis-Chenoweth Hardware Company to know if they [150]*150might with safety pay to Robert Scholze the amount they really owed after deducting the amount of the Allen & Taylor judgment and were warned not to do so.. It is further averred in the bill that the transfer of the judgment by Herman Scholze to Robert Scholze “was not made in good faith, but for the purpose of hindering, delaying, or defrauding the creditors of said Herman Scholze, Allen & Taylor among the number, to whose rights the said F. Lesser has succeeded.” It is also averred that Lesser had offered to set off his judgment against Herman Scholze in diminution of the judgment in favor of Herman Scholze against him and appellees which offer was declined. That Robert Scholze had caused execution to be issued in the name of Herman Scholze for his use against Lesser and appellees for the full amount of the judgment and was about to have the same levied on appellees’ property. That executions have been issued against Herman Scholze on the Allen & Taylor judgment but were returned “no property.” That Robert Scholze is a non-resident and has no property in the State subject to execution and that Herman Scholze is insolvent. That neither complainants, (appellees), nor Lesser can exercise the statutory right of setting off the one judgment against the other, when executions are issued, because the judgment owned by Lessor is against Herman Scholze while the execution issued against Lessor and appellees is in the name of Herman Scholze for the use of Robert Scholze who claims and controls the same. There are also appropriate averments in the bill denying all collusion in respect of .the interpleader. The bill seeks to set off the Allen & Taylor judgment, pro tanto, against the Herman Scholze judgment, and, as to the balance of the last named judgment, to require an interpleader between Robert Scholze and the FrancisChenoweth Hardware Company.

A temporary injunction was granted restraining the collection of the judgment by Herman and Robert Scholze until the determination of the rights of the parties.

The Francis-Chenoweth Hardware Company answered admitting all the allegations of the bill.

Robert and Herman Scholze filed a joint and several answer, admitting the several judgments but denying that Lesser bought the Allen & Taylor judgment without notice of the transfer of the Herman Scholze judgment to Robert 'Scholze. They deny that the transfer of said judgment to Robert Scholze was fraudulent and also deny the right of set-off as claimed in the bill. They also set up affirmatively that Lesser bought the Allen & Taylor judgment with notice [151]*151of the previous transfer of the Herman Seholze judgment to Bohert Seholze.

The Chancery Court overruled the motions to dismiss the bill for want of equity and to dissolve the injunctions. The correctness of that ruling is the' question involved in the appeal. ■

Appellees’ counsel, however, as a preliminary question, urge that the assignments of error can not avail appellants for the reason that it does not appear affirmatively from the record that Bobert Seholze was the movant in the motion to dismiss the bill and dissolve the injunction.

The motion is not set out in the record and there were several defendants besides Bobert Seholze. The decree of the court simply recites that the cause was submitted “on the motion to dismiss the bill for want of equity therein and on the denial in the answer,” without stating by whom it was made.

It sufficiently appears from the record that the interest claimed by Bobert Seholze in the subject-matter of the controversy, was injuriously affected by the decree of the court. That fact gives him the right of appeal whether ho was or not the party who actually submitted the motion upon which the decree was rendered. Furthermore the only answer containing any denial of the equity of the bill is the joint answer of Bobert and Herman Seholze; the answer of the other defendant admits every allegation of the bill. It is a reasonable inference from these facts that the motion to dismiss the bill for want of equity and to dissolve the injunction upon the denials in the answer was submitted by the parties who had jointly denied the equities of the bill and not by the party who had admitted in its answer all the averments of the bill.

Going now to the main question, it will be seen from the above statement of the averments and prayer of the bill that its purpose is twofold. First to set off, pro tanto, the Allen & Taylor judgment against the judgment of Herman Seholze against Lesser; and second, to require the Francis-Chenoweth Hardware Company and Bobert Seholze to inter-plead as to the balance of the Lesser judgment remaining after the allowance of the set-off.

Ordinarily a surety, when sued upon his obligation, can not avail himself of an independent cause of action existing against the plaintiff in favor of his principal,- as a defense or counter claim. It is for the principal to determine what use he will make of such cause of action; and the surety can not control his discretion.—Lasher v. Williamson, 55 N. Y. 619; Morgan v. Smith, 7 Hun. 244.

[152]*152By statute in this State, Code, § 2681, it is provided that a co-maker or surety sued alone, may with the consent of his co-maker or principal avail himseíf, by way of set-off, of a debt or liquidated demand due from the plaintiff at the commencement of the suit to such co-maker or principal.

But this statute by its terms is confined to cases where the surety is sued alone and where he has the consent of the principal to avail himself of the set-off, and, consequently, gives no support to the bill in this case.

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Bluebook (online)
100 Ala. 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scholze-v-steiner-ala-1893.