Wilson v. Martin-Wilson Automatic Fire Alarm Co.

8 L.R.A. 309, 24 N.E. 784, 151 Mass. 515, 1890 Mass. LEXIS 257
CourtMassachusetts Supreme Judicial Court
DecidedJune 17, 1890
StatusPublished
Cited by27 cases

This text of 8 L.R.A. 309 (Wilson v. Martin-Wilson Automatic Fire Alarm Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Martin-Wilson Automatic Fire Alarm Co., 8 L.R.A. 309, 24 N.E. 784, 151 Mass. 515, 1890 Mass. LEXIS 257 (Mass. 1890).

Opinion

Knowlton, J.

This case has previously been before us on the defendant’s demurrer, and it was decided that the demurrer should be overruled, and that the service was sufficient to enable the court to render a personal judgment against the company which would be held good in any other jurisdiction as well as in this. Wilson v. Martin-Wilson Automatic Fire Alarm Co. 149 Mass. 24. A hearing has since been had, and the case now comes here on an appeal from the final decree. The defendant concedes that all parts of the decree are well warranted by the law and the facts, except that part which provides that, if the defendant shall refuse or neglect to make and deliver a written assignment of the letters patent to the purchaser after [517]*517a sale at public auction by the master under the decree, the master shall “ make and deliver such assignment to said purchaser in the name and on behalf of the defendant corporation.”

Two objections are made to this part of the decree: first, that an order for a sale of property by a master, or other person appointed for that purpose, can be made by a court of equity only under the authority of a statute, and that there is no statute which authorizes it in this case; secondly, that a patent right is property of such a nature that the title cannot be passed by a sale or assignment made under an order of the court by any other person than the owner, even if it were in other respects within the jurisdiction of the court to make such an order.

It is undoubtedly true, that primarily jurisdiction in equity is in personam, and that as a general rule, when a transfer of property is necessary, the court cannot order a conveyance of it by a person other than the owner, except under the express or implied authority of a statute. The foundation of the jurisdiction to which the plaintiff appeals is the St. of 1851, c. 206, (Pub. Sts. c. 151, § 2, cl. 11,) which authorizes “ a bill by any creditor to reach and apply, in payment of a debt due from any debtor not residing in this Commonwealth, any property, right, title, or interest, legal, or equitable, of such debtor, within this Commonwealth, which cannot be come at to be attached or taken on execution, in a suit at law against such debtor.” This statute was passed long before the courts of this State were given general jurisdiction in equity, and it was early interpreted as creating rights unknown to the courts of chancery in England. It was held that a suit under it was not like an ordinary creditor’s bill, but that any creditor might proceed without making other creditors parties, and without first obtaining judgment, and while he held security, and that it gave him a right of equitable attachment for the collection of his debt. Crompton v. Anthony, 13 Allen, 33, 37. Barry v. Abbot, 100 Mass. 396. Tucker v. McDonald, 105 Mass. 423. In some particulars the court construed it rather strictly, and held that a patent right owned by a resident here was not property within the State within the meaning of the statute, and that a creditor could not, under this process, reach and apply an equi[518]*518table remainder of the debtor in a trust fund upon the future death of an equitable tenant for life, nor any other property when his claim was for less than one hundred dollars, and intimated that the statute would not apply except in cases where there was a third person in possession or control of the property of the debtor, or in some way under obligation to him. Bartholomew v. Weld, 127 Mass. 210. Phoenix Ins. Co. v. Abbott, 127 Mass. 558. Chapman v. Banker & Tradesman Publishing Co. 128 Mass. 478. Carver v. Peck, 131 Mass. 291. Russell v. Milton, 133 Mass. 180. Thereupon the St. of 1884, c. 285, was passed, with a view to enlarge the jurisdiction of the court. Section 1 of this chapter is as follows: A bill in equity may be maintained to reach and apply in payment of a debt any property of a debtor, as provided by clause eleven of section two of chapter one hundred and fifty-one of the Public Statutes, notwithstanding the fact that the plaintiff’s debt does not equal one hundred dollars in amount, or that the property sought to be reached and applied is in the hands, possession, or control of the debtor, independently of any other person, or that it is not within the State, or that it is of uncertain value, provided the value can be ascertained by a sale or appraisal, or by any means within the ordinary procedure of the court, or that it cannot be reached and applied until a future time.” Section 2 relates to suits to reach and apply the interest of a copartner in the partnership property.

The provisions of this act indicate an intention on the part of the Legislature to give the court power effectually to reach and apply every kind of property which cannot be attached or taken on execution. It changes the statute from a mere authority to make an equitable attachment of property in the hands of an equitable trustee, and authorizes proceedings in which there is no other defendant but the debtor, and plainly implies that the court may make all such orders and take such measures as may be necessary to apply the property to the payment of the debt. There can be no doubt that under it a court may proceed against an absent defendant so far as to appropriate his equitable interest in property in this State, which cannot be attached or taken on execution, to the payment of his debt. The only way in which that could be done in his absence might be by appointing [519]*519some person to sell and convey such interest. The act does not purport to point out the modes of procedure, but it authorizes the courts to do certain things which they could not do under their general jurisdiction, and impliedly authorizes them to take any measures analogous to ordinary proceedings of courts of equity which may be necessary or proper to accomplish the work which they are set to do. We can imagine many cases in which, without authority to order a sale by a master or other person, a court would fail utterly to reach and apply the property which the statute intended it should apply in favor of the creditor. Indeed, the present case seems to be such an one. For it appears that when this bill was brought the president and treasurer and all the directors of the defendant corporation resided or had their places of business in Boston in this Commonwealth, and that all these officers have since resigned their offices, and others have been elected in their places who are all residents of the State of Maine.

One clause of the statute distinctly refers to a sale of property, as a means of ascertaining its value, under an order of the court, in certain cases. It has never been decided that a sale by a master might not be ordered under the Pub. Sts. e. 151, § 2, cl. 11, and some of the reports indicate that it has been done. Davis v. Werden, 13 Gray, 305. However that may be, we are of opinion that under the later statute there is authority to make a sale in that way, whenever it may be necessary for the purpose of applying property conformably to the statute. This view is in accordance with our decision in McCann v. Randall, 147 Mass. 81.

The next question before us is, whether a patent right so differs from other property that it cannot be sold in this way. This question relates merely to the form of transfer; for it is well settled that a court of equity has power to take it and appropriate it to the payment of the owner’s debt. Gillett v. Bate, 86 N. Y. 87. Ager v.

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Bluebook (online)
8 L.R.A. 309, 24 N.E. 784, 151 Mass. 515, 1890 Mass. LEXIS 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-martin-wilson-automatic-fire-alarm-co-mass-1890.