Squire v. Lincoln

137 Mass. 399, 1884 Mass. LEXIS 281
CourtMassachusetts Supreme Judicial Court
DecidedJune 28, 1884
StatusPublished
Cited by5 cases

This text of 137 Mass. 399 (Squire v. Lincoln) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Squire v. Lincoln, 137 Mass. 399, 1884 Mass. LEXIS 281 (Mass. 1884).

Opinion

Field, J.

John P. Squire and Frank O. Squire, copartners under the style of John P. Squire and Company, on March 30, 1882, brought this suit in equity against Henry C. Lincoln, John Lincoln, and Volney R. Chamberlin, copartners under the style of Lincoln, Chamberlin, and Company, and against Lucia W. Chamberlin, Frances L. Hewlett, and Thomas Curley. The bill was inserted in a writ, and attachments of real and personal property have been made under the writ, and an interlocutory injunction has been issued restraining some of the defendants from conveying their interest in the real property described in the bill.

The substance of the bill is, that the firm of Lincoln, Chamberlin, and Company was and is largely indebted to the plaintiffs; that, while this partnership was so indebted, and was unable to pay its debts, Volney R. Chamberlin, the managing partner, fraudulently took from the firm large sums of money, and invested it in real property in his own name, and then executed mortgages thereon, purporting to secure large sums of money to Curley, who assigned the mortgages to Lucia W. Chamberlin, the wife of Volney R. Chamberlin; that Chamberlin also executed other mortgages directly to Frances L. Hewlett, his sister-in-law, and that these mortgages, now held by them, were given without consideration, and for the fraudulent purpose of delaying, defeating, and defrauding the creditors of Chamberlin, and of the firm of Lincoln, Chamberlin, and Company, as Curley, Mrs. Chamberlin, and Mrs. Hewlett knew; that Chamberlin also held the title to other real estate subject to a mortgage to one Sleeper, and, with the same fraudulent purpose, took money from the firm, paid off this mortgage, and, without having it discharged, procured an assignment of it to Curley, and from Curley to Frances L. Hewlett, who now holds it, and that this assignment was without consideration and fraudulent, as Curley and Mrs. Hewlett knew; and that Chamberlin, being assignee of an insolvent estate, as assignee, sold and conveyed by deed to Mrs. Hewlett certain real property belonging to the estate, subject to two mortgages, and that one of these mortgages he caused to be assigned to Mrs. Hewlett, who now holds both the deed and the mortgage, and that the consideration of both the deed and the assignment was paid by Chamberlin with [401]*401money taken fraudulently from the firm, and the deed and assignment were made to Mrs. Hewlett with the fraudulent purpose of defrauding his creditors and the creditors of the firm, as Mrs. Hewlett knew.

The bill asks that this deed and mortgage may be declared to be the property of the firm, that all the other mortgages may be declared void, and that all of the real property may be applied to the payment of the debt due from the firm to the plaintiffs.

The officer’s return of service of the writ shows a general attachment of the real estate in the county of Suffolk of all the defendants except Lucia W. Chamberlin, and of all the real estate of Henry C. Lincoln, John Lincoln, and Volney R. Chamberlin in the county of Middlesex, where all the land described in the bill lies. It also describes what is called a special attachment of five parcels, by specific description, being five of the parcels described in the bill, four of which were parcels purchased by Chamberlin and mortgaged by him, as has been mentioned, and the fifth is the parcel he owned subject to the mortgage to Sleeper. The record title of all these parcels is described in the return as in Chamberlin, subject to the mortgages held by Mrs. Chamberlin and Mrs. Hewlett, which are all described in the return. There is no real estate attached of which the title to the fee or to the equity of redemption is described as in any other person than Volney R. Chamberlin. The parcel described in the bill as having been conveyed by Chamberlin, as assignee, to Mrs. Hewlett, is not specially attached.

The partnership of Lincoln, Chamberlin, and Company, and John Lincoln and Volney R. Chamberlin, were adjudged insolvent debtors in this Commonwealth in April, 1882. Henry C. Lincoln individually was not included, because he was an inhabitant of the State of Missouri. John P. Squire, one of the plaintiffs, was duly appointed assignee in insolvency, and an assignment of the joint and separate estates was made to him on April 15, 1882. On June 26, 1882, Squire, as assignee, presented his petition to the court of insolvency, alleging that certain real estate standing in the name of Frances L. Hewlett, and certain real estate standing in the name of Frances L. Hewlett [402]*402otherwise called A. H. Hewlett, as holder of certain mortgages, and certain real estate standing in the name of Lucia W. Chamberlin, as holder of certain mortgages, had been attached in the suit in equity, and that a dissolution of said attachment might prevent the property attached from passing to the assignee; and he prayed that the court would order the lien created by the attachment to continue, pursuant to the Pub. Sts. c. 157, § 47; and on the same day the court of insolvency so ordered.

On October 18,1882, Squire, as assignee, moved in this court, after setting forth his appointment and the order of the court of insolvency, that he be allowed to appear in and prosecute this suit in equity. The three defendants, Lucia W. Chamberlin, Frances L. Hewlett, and Thomas Curley, appeared and filed a paper admitting that an assignment in insolvency of the joint and separate estates of the firm of Lincoln, Chamberlin, and Company, and of John Lincoln and Volney E. Chamberlin, had been made to Squire as assignee, and that the court of insolvency had ordered the lien created by the attachments to continue, and they prayed that the bill might be dismissed as to them. These two motions have been reserved for the determination of the full court.

It is argued that by the assignment in insolvency the right to avoid these mortgages and the deed made to Mrs. Hewlett, as made in fraud of the creditors of Chamberlin and of the partnership, has vested in the assignee, and no longer exists in the plaintiffs ; and although the assignee can bring an action or bill to avoid these conveyances for the benefit of the insolvent estate, that he ought not to be admitted to prosecute this bill of the plaintiffs, who have now no right to prosecute it; that it does not appear that the dissolution of the attachments will prevent any of the property attached from passing to the assignee, because it does not appear that any of the property attached, has been conveyed away by any of the insolvent debtors since the attachments, and before the assignment took effect; and that, so far as appears, the title to all the property of the debtors which has been attached has already passed to the assignee.

We think it manifest that the bringing of a bill in equity and the issuing of an injunction under the power a court of equity [403]*403has to compel or restrain conveyances of property, or to declare void or valid instruments purporting to be conveyances of property, or to reach and apply in payment of a debt the property legal or equitable of a debtor, do not constitute an attachment of property within the meaning of the Pub. Sts. c. 157, §§ 46, 47. The words “ attachment on mesne process ” have a well-known meaning.

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Bluebook (online)
137 Mass. 399, 1884 Mass. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/squire-v-lincoln-mass-1884.