Stretch v. Stretch

2 Tenn. Ch. R. 140
CourtCourt of Appeals of Tennessee
DecidedOctober 15, 1874
StatusPublished
Cited by1 cases

This text of 2 Tenn. Ch. R. 140 (Stretch v. Stretch) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stretch v. Stretch, 2 Tenn. Ch. R. 140 (Tenn. Ct. App. 1874).

Opinion

The Chancellor :

— J. M. Speer and J. & L. Whorley have presented a petition in this case asking that they be made parties defendant, with leave to make defence by demurrer, plea, or answer, and by cross-bill. The petition states that the bill is filed for the purpose of setting up a .resulting trust in favor of the wife of the defendant, Aaron Stretch, in a stock of drugs and other merchandise, then being retailed by the defendant in a store in Nashville. The ground upon which the equity of the bill rests is that the stock was bought by the defendant with funds held by him in trust for his wife, the complainant. The petitioners say they are creditors of the defendant, by note and open account for merchandise in the line of his trade sold to him by them, respectively. They further say “they do not believe that Stretch [the defendant] purchased the stock of merchandise on hand before the filing of said bill with the moneys or means of Mrs. Stretch, his wife. They believe [141]*141the bill was filed for a fraudulent purpose, and, advised by-Stretch, to hinder and delay creditors, if not to defeat them, entirely.” The petition shows that the stock was attached under the bill, and is now in the hands of a receiver-appointed by this court. Petitioners “ claim that they have equities in said merchandise,” and say that, “ as to whether-said Stretch’s wife has any equitable or legal claim against him, they know nothing.”

The question presented by this application is whether this-court has the right, upon the petition of third persons claiming “ equities ” in property in litigation, to permit them to-become defendants without the consent of the complainant,, and, if the court has such power in any case, whether this-is a proper case for the exercise thereof. ,

The general rule of chancery pleading is that no person should be made a party defendant who claims under a titles paramount to that brought forward in the suit, or who claims-under a prior title or encumbrance. Eagle Fire Ins. Co. v. Lent, 6 Paige, 635; Lange v. Jones, 5 Leigh, 192; Story’s Eq. Pl. § 230. And when a third person claims under, or-ín privity with, one of the parties litigant, the mode of bringing his interest before the court is by a supplemental bill, or an original bill in the nature of a supplemental bill.. Story’s Eq. Pl. § 156. It cannot be done by petition. Foster v. Deacon, 6 Madd. 59; Carow v. Mowatt, 2 Edw. 9.

Where there is no privity, a stranger interested in the subject-matter or objects of the suit must bring forward his claim by an original bill, in the nature of a supplemental bill or in the nature of a cross-bill, as the case may be, so-that those interested adversely may have process with a copy of the bill served upon them, and may have an opportunity to avail themselves of the regular modes of defence to such, bill. Any other practice would be inconsistent with the-fundamental principle of equity — that a person who is to be-bound by its decree must have the opportunity to be heard upon an issue regularly made with his adversary. To make a new defendant to a bill, claiming in a right not noticed by [142]*142-the bill, would throw the rules of chancery pleading into utter confusion, for it would be to try rights without any issue between the parties.

The only exception to the general rule is in the case of trustees and their beneficiaries. “If,” says Judge Story, Eq. Pl. § 208, “ the cestuis que trust (or beneficiaries) should not be made parties to the suit, and their interests are apparent, a court of equity will sometimes, as a matter of indulgence, and to prevent further delay and expense, allow them (if they wish) to bring forward their claims by petition, in order to have their interests ascertained and their rights protected.” He cites Drew v. Harman, 5 Price, 319, 324. The reason of this exception is obvious. The trustee fully represents the beneficiaries, as between them and the opposing party, and, if the trust distinctly :appears of record, there can be little objection to the summary remedy by petition as between the trustee and his cestuis que trust. But, even in this extreme case, the remedy by petition is “ a matter of indulgence,” not of right, and the remedy by original bill in the nature of a cross-bill clear and beyond question. Story’s Eq. Pl. § 208. It was upon this exception, however, and the authority of Judge . Story in the section cited, that our supreme court made the ruling in Birdsong v. Birdsong, 2 Head, 289, 302, although the same point had been ruled otherwise in Morris v. Nixon, 7 Humph. 584. The case of Saylors v. Saylors, 3 Heisk. 533, is similar to, and based upon, Birdsong v. Birdsong.

There are cases in the books where the courts have gone further, and, upon the petition of a stranger, permitted him to intervene as a defendant, no objection having been made by the complainant. Such were the cases of Galveston R. R. Co. v. Cowdrey, 11 Wall. 459, 464; Banks v. Banks, 2 Coldw. 546, 548; and Wilson v. Eifler, 7 Coldw. 33. Such, also, was the case of Hill v. Bowers, 4 Heisk. 273. For, although the printed opinion states that the stranger was permitted to intervene “ without objection by .defendant,” yet, as there were several defendants and only [143]*143one complainant, and as the word defendant ” occurs in the next preceding line, and as there would he no point in the defendant objecting, it seems almost certain that the word " defendant,” as printed, is a misprint for the word “ complainant.” In Read v. Long, 4 Yerg. 71, parties were made defendant over the objection of the complainant, but the action was not passed upon by the supreme court. Upon general principles, therefore, my predecessor on the bench ruled, in the case of Stevenson & May v. Nashville & Northwestern R. R. Co., against such intervention. The bill in that case was filed by the complainants, as holders of some of the mortgage bonds of the railroad company, ‘ ‘ as well for themselves as for all other holders of such bonds,” to foreclose the mortgage. The petitioners who sought to intervene were also holders of some of the mortgage bonds, and made their application in that character to resist the foreclosure. The Chancellor laid some stress on the fact that they were already virtually parties to the suit as complainants, and could not be permitted to change their place at pleasure. But he was also of opinion that the complainants could not, in this mode, as a general rule, be compelled to litigate with persons as defendants, contrary to their wishes.

I have myself, in two or three instances, upon principle and authority, ruled against the right to intervene in this mode, and, upon reconsideration, see no reason to doubt the correctness of my ruling. No such practice is known in equity as making a person a defendant to a suit on his own application. See Coleman v. Martin, 6 Blatchf. 119; Shields v. Barrow, 17 How. 145; Drake v. Goodridge, 6 Blatchf. 151.

The learned counsel of the petitioners, without controverting the correctness of these rulings, bases his application exclusively upon § 2799 of the Code, insisting that by it the law has been changed. There can, of course, be no doubt of the power of the legislature to intervene ¿nd radically change the practice of this court. That has [144]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Renfro Bros. v. Goetter, Weil & Co.
78 Ala. 311 (Supreme Court of Alabama, 1884)

Cite This Page — Counsel Stack

Bluebook (online)
2 Tenn. Ch. R. 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stretch-v-stretch-tennctapp-1874.