Stow v. Parks

2 Pin. 122, 1 Chand. 60
CourtWisconsin Supreme Court
DecidedJanuary 15, 1849
StatusPublished
Cited by1 cases

This text of 2 Pin. 122 (Stow v. Parks) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stow v. Parks, 2 Pin. 122, 1 Chand. 60 (Wis. 1849).

Opinion

Jackson, J.

This was an action of assumpsit, brought by Alexander W. Stow, plaintiff in error, against Rufus Paries, defendant in error, at the June term, 1846, of the district court for Milwaukee county, to recover of the said defendant the sum of $1,500.

The declaration of the plaintiff contained the usual money counts, to which the defendant pleaded the general issue, [123]*123together with two special pleas in bar : one alleging ancl setting forth the. discharge of the said defendant under the act of congress, entitled “ An act to establish a uniform system of bankruptcy throughout the United States,” passed August 19, 1841; and the other, the plea of the statute of limitations. To the first of these special pleas, a demurrer was filed, in which several special causes of demurrer were alleged, and to the second a replication. The cause was continued until the November term of said court, when the said defendant withdrew his plea of the statute of limitations, and the case was argued upon the demurrer of the plaintiif to the defendant’s special plea of discharge in bankruptcy ; which demurrer was overruled by the court, and judgment entered for the defendant upon the same, with costs. A writ of error was brought to reverse this judgment.

The grounds of error alleged are of a two-fold character : first, those of form ; and, secondly, those of substance. The former relate to the manner in which the plea of discharge is drawn, and the latter to the sufficiency of the discharge itself to bar the plaintiff’s action.

We propose to consider these different grounds of error assigned in the order in which they are presented.

1. Is the defendant’s plea so defectively framed as to be bad upon special demurrer ?

The first and most important inquiry upon this branch of the cause is, has the defendant, in his plea of discharge, set forth such facts as gave to the court, from which he obtained his discharge, jurisdiction ? 6 Hill, 607. If the jurisdiction clearly appears, then all such facts as were necessary to be proved in order to obtain his discharge, will be presumed to have been proved, and it was unnecessary for the defendant to have averred them specifically in his plea. Price v. Bray, 1 Pa. L. J. 465.

It is laid down by the supreme court of New Jersey, in the case of Price v. Bray, above cited, and in which the case [124]*124of Sacket v. Andros, 5 Hill, 128; and of Stephens v. Ely, 6 id. 609, are referred to, “ that as a question of pleading, the facts which give the jurisdiction must he averred. In the case of plea of bankruptcy, it is the filing of a petition by a bankrupt, a resident of the district, to be declared a bankrupt. The rule stands upon sound reason. It is not every bankrupt that the district court is authorized to discharge from his debts, but such debtor as has first applied to be declared a bankrupt. The plea should, therefore, aver that such a petition, to be declared a bankrupt, was filed ; that thereupon such proceedings were had, that the debtor was declared a bankrupt, etc., and that, by the order of the court, he had been discharged, etc.; and the jurisdiction thus appearing, all such facts will be presumed as were necessary to authorize the decree. Such discharge thus pleaded, will be a complete bar to all debts provable under the act, unless impeached for fraud.”

Tested by this standard, the plea of the defendant is undoubtedly good, and would not be liable to either of the objections taken by the plaintiff in error upon special demurrer.

It is further insisted, however, that the plea is defective in not averring that the “ plaintiff’s demand did not arise in consequence of the defalcation of the defendant in a fiduciary character.” Now, the authorities are in conflict as to the necessity of such an averment. It is conceeded that, by the late bankrupt act, the courts of the United States, taking cognizance of cases in bankruptcy, had no- jurisdiction over fiduciary debts. In the case of Chapman v. Forsyth et al. 2 How. 208, Mr. Justice McLean, in delivering the opinion of the supreme court of the United States, remarks: “If fiduciary debts are not within the act, a discharge can in no respect affect the interest of the fiduciary creditor.' Without his consent, it is clear that the bankrupt court can take no jurisdiction of his debt. And although the bankrupt may include the debt in his schedule, and the discharge may be [125]*125general, yet as the law gave the court no jurisdiction over the debt, it is not discharged.” It is exceedingly doubtfut, therefore, whether, under a fair construction of the bankrupt act of 1841, any such averment as is insisted on by the plaintiff in error is requisite in a plea of discharge.

The more correct practice would seem to be, if the plaintiff sought to impeach the discharge upon the ground of the fiduciary character of the debt sued upon, to allege that fact in his replication to the defendant’s plea, and by an issue thus joined, test the validity of his discharge. The plea hr question, however, is not, in reality, hable to this objection. It does, argumentatively, at least, contain such an averment; and although, if such an averment were necessary, this plea would be bad for argumentativeness if specially demurred to, yet, as no such special ground of demurrer is alleged, the plaintiff cannot now avail himself of such an objection. 5 Hill, 319. Having thus disposed of those grounds of error alleged, which relate to the pleadings simply, the next and most important error assigned remains to be considered. It is, that “ the discharge having been obtained by the defendant upon his own application, and without the assent of the plaintiff, and granted within the territory of Wisconsin, is void, being in violation of the ordinance of July, 1787.”

Were the question of the constitutionality of the act of congress of 1841, entitled “An act to estabh'sh a uniform system of bankruptcy throughout the United States,” now for the first time raised, it might, perhaps, involve considerar ations of such magnitude as to demand an elaborate investigation by this court.

The highest judicial tribunal in the nation has, however, pronounced the act to be constitutional. 1 How. 277; 2 id. 227. And no principle is better established, than that the exposition of the constitution, given by. the supreme court of the United States, is conclusive on the state courts. 8 Pick. 196; 3 Marsh, 423; 6 Conn. 493; 6 Binn, 272; 3 id. 84, 85.

[126]*126That the act of congress, of 1841, was designed to have effect equally as well in all the territories of the United States as in the several states, cannot be questioned. In the first section of the act it is expressly declared that “ all persons whatsoever, residing in any state, district or territory

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7 N.W. 300 (Wisconsin Supreme Court, 1880)

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Bluebook (online)
2 Pin. 122, 1 Chand. 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stow-v-parks-wis-1849.