Terrell v. Southern Railway Co.

51 So. 254, 164 Ala. 423, 1909 Ala. LEXIS 248
CourtSupreme Court of Alabama
DecidedJune 30, 1909
StatusPublished
Cited by8 cases

This text of 51 So. 254 (Terrell v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terrell v. Southern Railway Co., 51 So. 254, 164 Ala. 423, 1909 Ala. LEXIS 248 (Ala. 1909).

Opinions

MAYFIELD, J.

The bill in this case is one for discovery and relief, as well as for discovery in aid of a pending action at law. It is not, as appellants treats it, purely and solely for discovery in aid of a pending suit.

(1) The bill seeks to discover to which of the two defendants the complainant is liable, if liable at all, as to matters set forth in the bill — alleging that it may be liable to one or the other, but not to both, and that it cannot know specifically which, except by discovery.

[435]*435(2) It shows the necessity for, and seeks, an aecouning, to ascertain the amount of complainant’s liability to one or to the other of the two respondents.

(3) It seeks to protect complainant against an action by each of the respondents to enforce the same liability which it owes to one or to the other, but not to both.

(4) It seeks this discovery in defense of an action at law brought against complainant by one or the respondents.

(5) It seeks to enjoin this action at law by one of the respondents until the discovery and accounting can be had, which it alleges to be necessary to complainant's proper defense therein.

It is true, as claimed, by appellant, that a bill of discovery solely in aid of a defense to action at law will not lie against one who is not a party to the record at law. — Anderson v. Dowling, 11 Ir. Eq. Rep. 590; Kerr v. Rew, 5 Myl. & C. 154, 9 L. J. Ch. 148, 4 Jur. 525; Portugal (Gueen) v. Glyn, 7 Cl. & F. 466; Storys Eq. Pl. §§ 569, 610, and note; 14 Cyc. 310; Burgess v. Smith, 2 Barb. Ch. (N. Y.) 276. While the respondent corporation is not a necessary or proper party to the hill, in so far as it is a bill for discovery in aid of the defense to the suit brought by the other individual respondent — if there be separate and distinct parties, and the corporation be not a. mere business name of the other individual defendant, or the individual be not a mere alter ego of the corporation — yet it is a part of the relief sought to ascertain the relation of the two respondents, one to the other; Avhether they are one and the same or different parties, and, if different, to determine Avhich of the two dealt with the complainant in the matters set forth in the bill, upon which an accounting is sought. This information is alleged to lie. [436]*436and of necessity must lie, peculiarly within the knowledge of the respondents. So this phase of the bill not only makes the corporation a proper, but necessary, party.

I cannot agree with the appellant that the bill shows that the complainant has a complete and adequate remedy at law. If the averments of the bill are true — and on demurrer they must-be so taken — the complainant might be compelled to answer to both of these respondents severally for the same identical demand; and an accounting is necessary to ascertain the amount of its liabaility to either. A bill for discovery must allege that the complainant- is unable to prove the facts otherwise than by defendant’s answer. This is better done by averment of the facts themselves, than by the mere conclusion of the pleader to that effect. If the facts averred show it, the conclusion of the pleader to- the result is unnecessary; and in fact the conclusion of the pleader, unsupported by an averment of the facts upon which it is based, would be insufficient. I think the averments of the bill sufficient, as to this requisite of equity pleadings.

Of course, so far as the bill is one merely for discovery in aid of the defense to the action at law, it must be confined to a discovery of such matters only as relate to the defense, and it cannot be extended to a discovery of evidence which goes only to the maintenance of the action at law; and if this bill was one merely for discovery in aid of such defense it would be subject to demurrer on this ground, but, as before stated, it is one for relief independent of the defense to the pending-suit at law. It is also true that a bill for discovery merely in aid of the defense to a pending action-at law must show that the discovery is indispensable to the ends of justice, and that the defendant is capable of [437]*437giving the discovery sought, and it must show the nature of the defense, and the particular matters sought to he discovered with certainty; bnt, as said before, this is better done by averment of the facts which show these respective requisites than by a mere bald averment of the abstract propositions of law, which are mere legal conclusions of the pleader. I think the bill does conform to each of these requirements.

The bill also seeks an accounting. It is contended by appellant that the allegations of the bill are not sufficient to give it equity for this purpose. In this I cannot agree with counsel for appellant. It may be that there is really no ground for taking this case into equity. It may be that it is filed for delay; but we cannot know this from the allegations of the bill. The allegations do not allege it; but the allegations seem to me to conform to the rules and requirements of equity pleading, to the extent of giving the bill equity for the purposes of discovery and accounting. Upon this hearing the demurrer confesses these allegations, which are well pleaded, and we must treat them as true.

Can it be said that, if the facts alleged in this case are true, an accounting is unnecessary? It is probably true that a jury might be able to arrive at a conclusion as to the proper amount due on an accounting. This might be said as to all cases; but the rules of practice and procedure in chancery courts are better adapted to stating accounts than are those in courts of law. A court of equity will entertain jurisdiction of an accounting at the instance of a defendant in a law court, and enjoin such action, when the defense at law is inadequate by reason of the complexity of the accounting or otherwise. Mutuality of the accounts, of course, adds to the difficulty of accounting, and may give equity for this purpose when the bill would not have equity [438]*438but for the mutuality; but it is not indispensable to .equity jurisdiction for accounting. If the accounts be wholly on one side, but are numerous, complicated, and difficult, and extend over a considerable period of time, and involve many transactions, an accounting in equity would be proper. — Ely v. Crane, 37 N. J. Eq. 157; Crane v. Ely, 37 N. J. Eq. 564; Hall v. McKellar, 155 Ala. 508, 46 South. 460; Story, Eq. Jur. § 458; Dallas County v. Timberlake, 54 Ala. 410; 6 Pomeroy, Eq. Jur. (2 Eq. Rem.) § 930, and note; 5 Am. & Eng. Dec. Eq. p. 65, § 9.

Discovery alone is an independent ground of equity jurisdiction; but this jurisdiction is auxiliary to some other relief, and it must be limited to its legitimate functions. The bill in this case cannot or should not be treated as a bill for discovery merely. It also invokes other equity jurisdictions, and, moreover, seeks a decree involving the rights of the parties as to the subject-matter. It is, therefore, a bill for relief, as well as for discovery. ' The discovery is incidental to the relief sought, as well as to the action at law enjoined; and it must therefore be treated and tested by the rules of equity pleading and practice applicable to bills for discovery and relief.

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Cite This Page — Counsel Stack

Bluebook (online)
51 So. 254, 164 Ala. 423, 1909 Ala. LEXIS 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrell-v-southern-railway-co-ala-1909.