Stockbridge v. Mixer

116 N.E. 877, 227 Mass. 501, 1917 Mass. LEXIS 1152
CourtMassachusetts Supreme Judicial Court
DecidedJune 27, 1917
StatusPublished
Cited by16 cases

This text of 116 N.E. 877 (Stockbridge v. Mixer) 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
Stockbridge v. Mixer, 116 N.E. 877, 227 Mass. 501, 1917 Mass. LEXIS 1152 (Mass. 1917).

Opinion

Pierce, J.

The plaintiff on December 9, 1909, brought this bill in equity under R. L. c. 159, § 3, cl. 7, to establish a debt alleged to be owing to him for legal services from the defendants, J. Frank and William A. Mixer, as copartners under the name of Mixer Brothers and to reach and apply in payment thereof certain property of the copartnership, to wit, certificates of stock of a Maine corporation then held by the defendant bank under an agreement to return the stock on demand to Mixer in case the defendant Hayes should fail to carry out on or before December 12, 1909, the terms of an agreement and option of purchase, under seal, executed by and between J. Frank Mixer and Alfred S. Hayes, May 29, 1909; and in the alternative should Hayes on or before December 12, 1909, elect to pay the sum of $121,500, the sum under the option to be paid on or before that day, with interest thereon as provided in said agreement, and should elect to demand and receive from the defendant bank the shares of stock, then and in that case the plaintiff seeks to apply so much of said sum as shall be sufficient to secure the payment of the indebtedness due from the defendants J. Frank and William A. Mixer, as the same may be determined and ascertained.

On December 10, 1909, upon due notice and hearing, an ad interim injunction issued in substance restraining the defendants Mixer from demanding and receiving the shares of stock in the custody of the bank, and directing Hayes in case he shall elect to purchase the stock to retain of the purchase money otherwise payable by him to the defendants Mixer the sum of $10,000 until the further order of the court.

The defendant Hayes on February 3, 1910, in answer to the allegations of the plaintiff’s bill “. . . says he has no interest in said controversy except that he holds ten thousand dollars ($10,000) in accordance with and subject to the order of the court.” The defendants Mixer in their several answers to the bill of complaint and to the amended bill of complaint, by way of demurrer contend first, that the bill of complaint does not allege facts [509]*509entitling the plaintiff to any relief in equity; and, second, that the plaintiff has a plain and adequate remedy at law.

At the time the bill of complaint was brought and at the time the injunction issued as above set forth, the defendant, the Metropolitan National Bank held thirty thousand shares of the Mixer Brothers Company, a corporation organized under the laws of the State of Maine, subject to the terms and conditions of an agreement under seal between J. Frank Mixer and Alfred S. Hayes, dated May 29,1909. By the terms of that contract Mixer agreed to deposit all of said stock, together with a copy of the agreement with Hayes, with the bank on or before June 2, 1909, upon the simultaneous payment by Hayes to him of $2,500. As appears by the evidence the money was paid to Mixer and the stock was deposited with the bank to be held by the bank subject to the terms and conditions of the agreement. The agreement further provided that the bank should have a lien on the stock for the payment of its services as custodian and for other expenses referred to in the agreement, and that it should deliver all the shares of stock to Hayes or to his order should Hayes in performance of the terms of the agreement elect to pay to Mixer $7,500 on or before June 12, 1909, $3,500 on or before July 12,1909, and $121,500 on or before December 12, 1909. At the time this bill was filed it further appeared that Hayes had made payment of the instalments to be paid in June and July, and that he proposed and intended on or before December 17, 1909, to make the final payment and to demand and receive from the defendant bank the said thirty thousand shares of stock.

The demurrer was overruled rightly. Lord v. Harte, 118 Mass. 271. The certificates of stock in the custody of the bank could not have been attached in an action at law because a sale on execution of the shares would not convey any interest in the stock as stock. They were not chattels, subject to seizure on trustee process, for a like reason and because the right of Mixer to have the shares of stock redelivered by the bank was contingent on the discharge of any lien of the bank created by the agreement, and upon the non-exercise of the terms of the option granted to Hayes.

The alternative, contingent and vested rights of Mixer to a redelivery of the shares of stock and the right to receive money in [510]*510place of the stock from Hayes, in case the option of purchase was exercised, were valuable rights which a creditor of Mixer could not enforce through the remedies of an action at law. Upon the service of the injunction the plaintiff acquired an equitable lien upon the rights of Mixer to the shares of stock, in the custody of the bank and to the proceeds of the shares of stock which he could follow and enforce. Wiggin v. Heywood, 118 Mass. 514. Worcester v. Boston, 179 Mass. 41. Snyder v. Smith, 185 Mass. 58. It is plain that any remedy at law would be imperfect, and that the court acquired jurisdiction with the filing of the bill to proceed under R. L. c. 159, § 3, cl. 7, which was not lost by the later exercise of the option. Campbell & Zell Co. v. Barr Pumping Engine Co. 182 Mass. 304, 306. Rosen v. Mayer, 224 Mass. 494. Leavitt v. Dimond, ante, 216. Milkman v. Ordway, 106 Mass. 232. See Haskell v. Waties, 2 Rich Eq. 8. Sarter v. Gordon, 2 Hill Eq. 121.

The appeals from the- order of reference to a master, from the order overruling a motion to recommit to the master, from an order vacating a former order discharging the reference to a master, and from the interlocutory decree “. . . that the master’s report now on file be treated as an auditor’s report at the trial of said cause upon issues framed for a jury” must be overruled.

The reference to a master in a suit in equity and the appointment of an auditor in an action at law are matters for the exercise of judicial discretion, which ordinarily is not subject to revision on appeal or exception. Bradley v. Borden, 223 Mass. 575, 586. Fair v. Manhattan Ins. Co. 112 Mass. 320. The motion to recommit in either case likewise is a matter of discretion. Tobin v. Kells, 207 Mass. 304, 310. The formal error of reference to a master in an action at law is cured by an order that the master’s report shall be treated as and have the force of an auditor’s report. Falmouth v. Falmouth Water Co. 180 Mass. 325. Norwood, petitioner, 183 Mass. 147. Gray v. Chase, 184 Mass. 444. Because objections cannot be taken to an auditor’s report, it necessarily follows that exceptions founded thereon cannot be considered and must be discharged when the report of a master becomes an auditor’s report. Eagan v. Luby, 133 Mass. 543. Moore v. Dugan, 179 Mass. 153.

In the case at bar it is not contended that the report considered as an auditor’s report is in any respect insufficient. No [511]*511motion was made to recommit the report as an auditor’s report and no exceptions were taken to rulings or to a refusal to make rulings as to the effect to be given to that report by the jury.

On March 29, 1909, the plaintiff sent a statement to “The Mixer Bros.

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Bluebook (online)
116 N.E. 877, 227 Mass. 501, 1917 Mass. LEXIS 1152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stockbridge-v-mixer-mass-1917.