Switow v. Sher

186 So. 519, 136 Fla. 284, 1939 Fla. LEXIS 1552
CourtSupreme Court of Florida
DecidedFebruary 7, 1939
StatusPublished
Cited by16 cases

This text of 186 So. 519 (Switow v. Sher) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Switow v. Sher, 186 So. 519, 136 Fla. 284, 1939 Fla. LEXIS 1552 (Fla. 1939).

Opinion

Buford, J.

— The appeal brings for review order granting petition to intervene signed by the Honorable H. F. Atkinson on March 23, 1938, and recorded on the 24th day of March, 1938, in Chancery Order Book 463 at page 326, and that certain interlocutory order or decree signed by the Honorable H. F. Atkinson on July 5th, 1938, and recorded on the 9th day of July, 1938, in Chancery Order Book 474 at page 427, in which the plaintiff’s motion to strike the answer of the intervener and motion to dismiss the cross-bill of complaint of the intervenor L. M. Gerstel were denied.

Appellant poses three questions for our consideration as follows:

I. “Where a plaintiff files a suit at common law as the owner and holder of a promissory note and thereafter files his creditors bill under Section 5035, Compiled General *286 Laws of the State of Florida for 1927, seeking to set aside alleged fraudulent conveyances, may a stranger to such creditors bill intervene therein, over the objection of the plaintiff, for the sole purpose of contesting plaintiff’s ownership of the promissory note?”
II. “May a stranger to a creditors bill, who has intervened therein without order permitting him to intervene otherwise than in subordination to and in recognition of the propriety of the main proceeding, file a cross-bill-against the plaintiff for the purpose of trying plaintiff’s title to the pronrssory note sued upon by the plaintiff in a common law action, where the promissory note is not the subject matter, of the equity suit?”
III. “Is the subject matter of a cross suit which seeks to try title and ownership of a promissory note germane to the subject matter of a creditors suit which seeks to set aside fraudulent conveyances and hold property subject to the payment of the plaintiff’s claim?”

The appellee submits that the second and third questions should be stated differently, or as follows:

“Second Question:
“Cross-bill by Intervenor. — May a stranger to a creditors bill who has been allowed by the Court to intervene therein for the purpose of asserting his right or establishing his title to a promissory note for the satisfaction of which such creditor’s bill was filed, file a cross-bill in said suit against the plaintiff for the purpose of contesting plaintiff’s title to such promissory note, upon which a common law action brought by the plaintiff was then pending?”
“Third Question:
“Subject Matter of Cross-bill. — Is the subject matter of a cross-bill which seeks to try title and ownership of a *287 promissory note germane to the subject matter of a creditors bill which seeks to set aside fraudulent conveyances and hold property subject to the satisfaction of pla.ntiff’s alleged claim based upon such promissory note alleged in such creditor’s bill to be owned by the plaintiff and filed by him in evidence in the creditor’s suit?”

Stated either way, the answers to the questions will be the same.

The record shows that in March, 1938, Switow exhibited his creditor’s bill in the Circuit Court of Dade County, naming certain defendants, seeking to set aside an alleged fraudulent conveyance alleged to have been made by two debtors named defendants in that suit, one Jacob Sher and one Samuel C. Levenson, under the provisions of Section 3229 R. G. S., 5035 C. G. L,. which is as follows:

“A creditor’s bill may be filed in the courts of this State, having chancery jurisdiction, before the claims of indebtedness of the persons filing the same shall have been reduced to judgment, but no such bill shall be entertained by such court, unless the complainants therein shall have first instituted suits in the proper courts at law for the collection of their claims; and no final decree shall be entered upon such creditors bill until such claims shall have been reduced to judgment.”

In the bill it was alleged, inter alia, “that on February 3, 1938, he instituted a suit against the defendants, The Lev-Sher Realty Co., Inc., Jacob Sher and Samuel C. Levenson, in the Circuit Court of the Eleventh Judicial Circuit of Florida, in and for Dade County, at Law, the same being entitled, S. J. Switow v. The Lev-Sher Realty Co., Inc., a Florida corporation, Jacob Sher and Samuel C. Levenson, being a suit upon a promissory note claiming damages in the sum of $40,000.00. That said promissory note upon which said suit at law was predicated was made *288 jointly by Samuel C. 'Levenson and Jacob Sher and The Lev-Sher Realty Co., Inc. Said promissory noté was made payable to Charles Gordon, Inc., and evidenced money lent by the said Charles Gordon, Inc., to the said makers of the said promissory note. Plaintiff purchased said promissory note for value before maturity and is the holder and owner of the same. In the said common law suit brought for the collection of the said money due on said promissory note, process is issued and placed in the hands of the sheriff and the same has been served upon the defendants in said suit. The declaration has been filed in said cause and the plaintiff will speedily prosecute, the same to final judgment.”

Attached to the bill of complaint was copy of the' note sued on in common law action marked Exhibit A ánd made a part of the bill, which is as follows:

“No..................... $14778.48 Miami, Florida, March 20,' 1928.
“On Demand ................................ after date for value re-. ceived we promise to pay to the order of Charles Gordon. Inc. Fourteen Thousand Seven Hundred Seventy-eight 48/100 Dollars Payable at City National Bank of Miami, Florida, with interest thereon at the rate of 8 per cent, per annum from date until fully paid. The maker and endorser of this note further agree to waive demand, notice of non-payment and protest, and in case suit shall be brought .for the collection hereof, or the same has to be collected upon demand of an attorney, to pay reasonable attorney’s fees for making such collection.
“Deferred interest payments to bear interest from maturity at 8 percent, per annum, payable 'semi-annually.
“Due 193........
*289 “The LEV-Sher Realty Co., Iric.,
“By Sam’l C. Levénson, Pres.
“(Seal)
“By Jacob Sher, Secy. (Seal)
“Jacob Sher (Seal)
“Sam’l C. Levenson (Seal)”
“(Endorsed on back:)
“Charles Gordon, Inc.
By Charles Gordon, Pres.
The bill prayed for relief against alleged fraudulent ’conveyances and asked for the appointment of a Receiver under the creditor’s bill to take charge of the property alleged to have been fraudulently conveyed.

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Bluebook (online)
186 So. 519, 136 Fla. 284, 1939 Fla. LEXIS 1552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/switow-v-sher-fla-1939.