Va. & Ala. Mining & Manufacturing Co. v. Hale & Co.

93 Ala. 542
CourtSupreme Court of Alabama
DecidedNovember 15, 1890
StatusPublished
Cited by33 cases

This text of 93 Ala. 542 (Va. & Ala. Mining & Manufacturing Co. v. Hale & 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
Va. & Ala. Mining & Manufacturing Co. v. Hale & Co., 93 Ala. 542 (Ala. 1890).

Opinion

CLOPTON, J

— The main causes of demurrer, consisting of several distinct, assignments varying in phraseology, may be condensed as follows: First, that complainants have a full and adequate remedy at law, and that the bill, being founded on an alleged breach of contract for which they seek to recover damages, avers no facts authorizing a court of equity to entertain it on the ground of discovery; second, that the bill, being for discovery and relief, avers no'facts showing that the discovery is necessary to prove any facts upon which complainants rely for relief, or that they can not otherwise prove each and every matter sought lo be discovered.

The primary and ultimate purpose of the bill is the recovery of damages for the breach of a contract, by which defendants agreed to guarantee to complainants the exclusive sale of all coal mined by defendant, or under its control from July 1, 1887, to July 1, 1888, and to furnish complainants, at the ruling market prices, such coal as may be necessary to supply their demands. The bill alleges that defendant operated and controlled several different mines, a majority of those situated in Walker county then being mined; and prays for an account of the quantity mined, the ruling market prices at each mine, and the profits which complainant would have realized had the contract been performed on the part of the defendant.

As a general proposition, courts of equity do not entertain suits the sole object of which is to recover damages for the breach of a contract, the remedy at law being adequate and complete. It is well settled, that when there is no fiduciary relation between the parties devolving the duty to render an account, and the accounts are not mutual, equity has not [544]*544original and independent jurisdiction in the matter of accounts, unless there is so great complexity and intricacy that a jury can not examine and state it with the necessary accuracy. — State v. Bradshaw, 60 Ala. 239; Hudson v. Vaughan, 59 Ala. 609.

The ascertainment of the profits which would have been realized by complainants involves the quantity of coal mined and controlled by defendant at the different mines, the market prices at each, and the cost and expense of transportation and sale in the different markets; but these data being ascertained, the profits become a matter of mere addition and subtraction, the only difficulty consisting in the number of items. In Dickinson v. Goldthwaite, 34 Ala. 638, the account involved the manufacture and furnishing of large 'quantities of articles of clothing during a series of years, from three different places, at a profit of a designated per cent, on the original cost. It is said: “The account was for clothes furnished to the complainant during a series of years, and differs from the ordinary accounts of merchants in this, that the charging was controlled by a contract made at the inception of the account. There was no mutuality of accounts. On the complainant’s side there was only a claim of credits for payments made. . . . There was nothing more, therefore, than an account on one side, with credits for payments made. Of such an account chancery has not original and independent jurisdiction.” And while it was said' that equity will entertain jurisdiction in some cases where there is no mutuality, it was held that the account did not present that strong case of entanglement or complication which is necessary to maintain the equitable jurisdiction. The averments in the present bill, though showing difficulty in establishing the necessary data from which to state the account, do not show any greater complexity.

But the bill is framed for discovery, as well as for relief; and notwithstanding the accounts may be on one side only, and there may be no great complication, when a discovery is needed in aid of the account, and is obtained, the court will entertain jurisdiction for the purpose of final relief. Discovery itself is an acknowledged independent source of equitable jurisdiction, but the jurisdiction is auxiliary, and a suit for that purpose must be limited to the legitimate functions of furnishing evidence in aid of a pending or anticipated action. The pendency of such action, or its anticipation, and that the discovery will be material to support the plaintiff’s cause of action, or the defendant’s defense, as the case may be, must be averred. The bill is not framed, and can not be treated, as1 a bill for discovery merely. It invokes exercise of the jurisdiction of a court of equity which necessitates a hearing and de[545]*545cree on the rights of the parties. This constitutes it a suit for relief, and liable to all the incidents of that proceeding. Story Eq. FI. § 314. Therefore, the question, whether the bill is demurrable on any of the grounds assigned, must be determined by the rules and modes of procedure peculiar to bills for discovery and relief.

The general rule is, that when equitable jurisdiction attaches for a rightful purpose, the court will retain it, and proceed to settle and adjudicate all the matters in controversy, granting complete relief, though it may involve the adjudication of purely legal questions. As a corollary from this rule, many courts hold, that when jurisdiction is acquired in a suit [having the direct and primary purpose of discovery proper, the court will proceed to grant whatever relief the complainant may be entitled to, though the matter involved is not independently within the equitable jurisdiction, and the remedy at law is adequate. In such cases, the retention of jurisdiction for the purposes of final relief is consequential, and has no foundation on which to rest, when the primary and principal ground of jurisdiction fails. That honored and most learned jurist, Chief-Justice Marshall, stated the rule in the following broad terms: “That if certain facts, essential to the merits of a claim purely legal, be exclusively within the knowledge of the party against whom that claim is asserted, he maybe required, in a court of chancery, to disclose those facts; and the court, being thus rightly in possession of the cause, will proceed to determine the whole matter in controversy.” This statement was qualified by the observation, that the rule can not be employed as a mere pretext for bringing causes, proper for a court of law, into a court of equity; and if no discovery is obtained, the suit should be dismissed, though the complainant may support his claim by evidence unaided by the answer of the defendant. — Russell v. Clark, 7 Cr. 69. This statement of the rule has been sometimes regarded as calculated to mislead in many cases by its generality.

While th'e foregoing has been distinctively called the American doctrine, the best considered cases do not regard discovery as the independent source of equitable jurisdiction to grant relief, in respect to- a matter of purely legal cognizance, in a suit for discovery and relief. In such suit, the discovery is incidental, and may be the occasion for the exercise of the jurisdiction. In such cases, when the jurisdiction does not otherwise exist, it rests on the inadequacy of the legal remedies, produced generally by the operation of the rules governing the examination of witnesses and the production of books, writings, or other evidence in courts of law. This results from [546]*546the limitations and restrictions upon the operation of the general rule which have been well established in suits for discovery and relief.

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

Related

Van Valkenburgh v. Holden
138 So. 2d 707 (Supreme Court of Alabama, 1962)
Martin Stamping & Stove Co. v. Manley
69 So. 2d 671 (Supreme Court of Alabama, 1953)
MacEy v. Crum
30 So. 2d 666 (Supreme Court of Alabama, 1947)
Tuskegee Homes Co. v. Oswalt
26 So. 2d 865 (Supreme Court of Alabama, 1946)
McEntyre v. Forman
24 So. 2d 537 (Supreme Court of Alabama, 1946)
Employers Ins. Co. of Alabama v. Rhodes
198 So. 616 (Supreme Court of Alabama, 1940)
Merrill v. Ritch
177 So. 886 (Supreme Court of Alabama, 1937)
Copeland v. King
139 So. 221 (Supreme Court of Alabama, 1932)
Wood v. Estes
139 So. 331 (Supreme Court of Alabama, 1932)
Cleveland Storage Co. v. Guardian Trust Co.
131 So. 634 (Supreme Court of Alabama, 1930)
Boriss Const. Co. v. Deasey
103 So. 470 (Supreme Court of Alabama, 1925)
Erswell v. Ford
88 So. 429 (Supreme Court of Alabama, 1921)
Alabama, Tenn. & Northern Ry. Co. v. Aliceville Lumber Co.
74 So. 441 (Supreme Court of Alabama, 1916)
Russell v. Bush
71 So. 397 (Supreme Court of Alabama, 1916)
Pollock & Co. v. Haigler
70 So. 258 (Supreme Court of Alabama, 1915)
Steverson v. Agee & Co.
70 So. 298 (Alabama Court of Appeals, 1915)
Carmichael v. Pond
67 So. 384 (Supreme Court of Alabama, 1914)
Shelton v. Timmons
66 So. 9 (Supreme Court of Alabama, 1914)
Gayle v. Pennington
64 So. 572 (Supreme Court of Alabama, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
93 Ala. 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/va-ala-mining-manufacturing-co-v-hale-co-ala-1890.