Woods v. Spoturno

183 A. 319, 37 Del. 295, 7 W.W. Harr. 295, 1936 Del. LEXIS 19, 1936 Del. Super. LEXIS 12
CourtSuperior Court of Delaware
DecidedFebruary 17, 1936
Docketscire facias, No. 25
StatusPublished
Cited by11 cases

This text of 183 A. 319 (Woods v. Spoturno) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woods v. Spoturno, 183 A. 319, 37 Del. 295, 7 W.W. Harr. 295, 1936 Del. LEXIS 19, 1936 Del. Super. LEXIS 12 (Del. Ct. App. 1936).

Opinion

Harrington, J.,

delivering the opinion of the Court:

The plaintiff, John F. Woods, procured a judgment by default in this court in a foreign attachment proceeding against Francois Coty, the French perfumery manufacturer, and a resident of France, for $1,144,089.27. Francois Coty subsequently died and the plaintiff issued a scire facias on that judgment in order to make the personal representatives of Mr. Coty parties to it; and the case is before us on a motion of the defendants to dismiss that writ and to quash the services of it. Other contentions are made, but this motion is mainly based on the contention that the judgment is void on its face, because it not only appears from the record of it that the rights and interests of Mr. Coty, in the corporate stock attached, are purely equitable in their nature, but it also appears that such alleged interests do not [303]*303appear on the books of the corporation, and, therefore, are not subject to attachment.

The return of the sheriff showing what he did pursuant to the directions of the attachment writ is a part of the judgment record. The “First” paragraph of that return shows that he attached the interest of Francois Coty in 606,661 shares of the capital stock of Coty, Inc., a Delaware Corporation, a portion of which stock was in the name of Lee & Co., and the remainder in the name of Hurley & Co. It also appears from that paragraph of the return that both of these concerns were merely acting as nominees of Mr. Coty in holding the stock registered in their names.

From the broad language of the “Second” paragraph of the sheriff’s return on the writ it might seem that other and additional stock, stock options, or right or interest in stock of Coty, Inc., had been attached. At the argument of the case the plaintiff’s attorney admitted, however, that the only property rights of Mr. Coty seized under the writ were those described in the “First” paragraph of that return.

This admission is consistent with the statements made by the plaintiff in the attachment affidavit, which also composes a part of the judgment record.

A judgment in a foreign attachment proceeding is a judgment in the nature of a judgment in rem and not in personam; and the validity of this judgment, therefore, depends on whether such equitable rights or interests in corporate stock, as were seized, were subject to attachment under Section 2009 of the Revised Code of 1915 (Corporation Law, § 95), as amended by Chapter 105, § 1, Volume 33, Laws of Delaware. McLaughlin v. Bahre, 5 W. W. Harr. (35 Del.) 446, 166 A. 800.

[304]*304 As a general rule the issue raised by a scire facias on a judgment is a very narrow one, and no questions that were or might have been raised prior to the entry of the judgment will be considered under it. Bobbins v. Bacon, 1 Root (Conn.) 548; Green v. DeWit, 1 Root (Conn.) 183; Dowling, Adm’r, v. McGregor, 91 Pa. 410; Bank of Eau Claire v. Reed, 232 Ill. 238, 83 N. E. 820, 122 Am. St. Rep. 66; St. Paul Harvester Co. v. Mahs, 82 Neb. 336, 117 N. W. 702; Malsberger v. Parsons, 1 Boyce 254, 75 A. 698; 34 C. J. 662; 56 C. J. 869. This is necessarily so because that writ partakes of the nature of a declaration (Woodward v. Daniels, 3 W. W. Harr. [33 Del.] 36, 130 A. 30), and also because of the limited scope of its allegations; but that rule does not apply if the invalidity of such judgment clearly appears from the record of it. St. Paul Harvester Co. v. Mahs, 82 Neb. 336, 117 N. W. 702; Robbins v. Bacon, 1 Root (Conn.) 548; Dowling, Adm’r, v. McGregor, 91 Pa. 410; Bank of Eau Claire v. Reed, 232 Ill. 238, 83 N. E. 820, 122 Am. St. Rep. 66; Lashmett v. Prall, 83 Neb. 732, 120 N. W. 206; Amer. Freehold Land Mortg. Co. v. Smith, 84 Neb. 237, 120 N. W. 1113; Malsberger v. Parsons, 1 Boyce 254, 75 A. 698; 34 C. J. 663.

In Malsberger v. Parsons, 1 Boyce 254, 75 A. 698, 702, supra, the court said: “If the scire facias is in character a judicial writ, issuing upon the record, then only these defences may be pleaded that go to the denial, release, and discharge of the record;” and because of alleged jurisdictional defects, apparent on its face, the validity of the plaintiff’s judgment is one of the questions in this case. When such defects are so apparent, a judgment may be attacked collaterally, and this would seem to be so no matter for what purpose the writ of scire facias is issued. See Frankel v. Satterfield, 9 Houst. 201, 19 A. 898; see, also, Sharon v. Terry (C. C.), 36 F. 337, 346, 1 L. R. A. 572. [305]*305Woods v. Coty et al., 21 Del. Ch. —, 180 A. 587, 589, is not inconsistent with this conclusion. In that case the court in commenting on Frankel v. Satterfield, 9 Houst. 201, 19 A. 898, supra, said:

“Where the scire facias seeks execution of a judgment, it is obvious that it is a pertinent and immediate subject of inquiry whether the judgment has a legal existence.”

' As we shall hereafter see that is the real purpose of the writ in this case. In most cases questions of this character are raised by the plea of nul tiel record, but if the plaintiff’s judgment is void on its face, as is contended by the defendants, no new parties should be made to it, or other proceedings taken on it. There would, therefore, seem to be no good reason why the questions raised by the defendants cannot be considered under their motion to dismiss the scire facias issued on that judgment and to quash the service of that writ.

Shares of stock in a corporation are intangible property in the nature of choses in action and are not capable of a manual seizure and delivery. By reason of that fact at common law they could not be levied on and sold on execution process. Fowler v. Dickson, 1 Boyce 113, 74 A. 601; 11 Fletcher on Cor. (Per. Ed.) 103.

That general rule has been changed, in this State, by statute and corporate stock is now subject to seizure and sale in attachment proceedings, but the question is, whether that statute applies to the facts of this case.

For the reason already stated, at common law, an equitable interest in personal property could usually be reached by a creditor’s bill in equity, but it could not be seized on execution process issued by a Court of Law. Lessee of Smith v. McCann, 24 How. 398, 16 L. Ed. 714; Disborough v. Outcalt, 1 N. J. Eq. (Saxton) 298; Scott v. [306]*306Scholey, 8 East. 467; 6 Pom. Eq. Jur. (3d Ed.), § 871; 23 C. J. 340; 15 C. J. 1376.

The same general rule also applied to an equitable interest in land. Lessee of Smith v. McCann, 24 How. 398, 16 L. Ed. 714; Disborough v. Outcalt, 1 N. J. Eq. (Saxton) 298; Sawyer v. Morte, 21 Fed. Cas. page 567, No. 12,401; Flanagin v. Daws, 2 Houst. 476; 6 Pom. Eq. Jur.,

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Bluebook (online)
183 A. 319, 37 Del. 295, 7 W.W. Harr. 295, 1936 Del. LEXIS 19, 1936 Del. Super. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-v-spoturno-delsuperct-1936.