Reichner v. Reichner

Decision Date14 October 1912
Docket Number129
Citation237 Pa. 540,85 A. 877
PartiesReichner, Appellant, v. Reichner
CourtPennsylvania Supreme Court

Argued May 13, 1912

Appeal, No. 129, Jan. T., 1912, by plaintiff, from judgment of C.P. No. 4, Phila. Co., Sept. T., 1907, No. 3226, on verdict for garnishee in case of Winfield K. Reichner v Samuel K. Reichner, Defendant, and Richard M. Cadwalader Garnishee. Affirmed.

Attachment execution. Before AUDENRIED, J.

From the record it appeared that on October 25, 1907, Winfield K Reichner entered judgment, in the Court of Common Pleas, No. 4, of Philadelphia County, against Samuel K. Reichner upon a judgment note for $7,700, dated August 8, 1905, and payable one day after date. The same day damages were assessed at $9,470 and an attachment execution issued against Richard M. Cadwalader and three other persons as garnishees. Subsequently rules were taken to dissolve the attachment and to open the judgment, but were discharged. Interrogatories and answers were filed, and a rule for judgment against Richard M. Cadwalader was entered and discharged. Cadwalader filed a plea, but appellant failed to print it in his paper-book. In his abstract of proceedings he says that "an issue was framed upon the usual general issue pleas being filed."

The case was called for trial February 7, 1912, before AUDENRIED, J., and resulted in a "verdict for the defendant in the issue, i.e. for garnishee Cadwalader." Plaintiff moved for a new trial and for judgment non obstante veredicto, but both motions were dismissed and judgment was entered on the verdict. Plaintiff appealed.

Upon the trial plaintiff showed that garnishee, who is a member of the bar, had been attorney for Mrs. Caroline Vautier in four suits brought against her by the defendant, Samuel K. Reichner, one of which had been marked to the use of the plaintiff, Winfield K. Reichner. On February 1, 1907, while these suits were still pending, an agreement was entered into between the parties to them and their respective attorneys, as follows:

"It is hereby agreed between George Bradford Carr, attorney-at-law, as counsel for Samuel K. Reichner, and Samuel K. Reichner, individually, and Winfield Reichner, assignee of the said Samuel K. Reichner, by a certain assignment bearing date May 8, 1906, as parties of the first part, and Richard M. Cadwalader, attorney-at-law, for Caroline Vautier, and Caroline Vautier, individually, that the case of Samuel K. Reichner against Caroline Vautier in Court of Common Pleas No. 1, March Term, 1906, No. 3767, and the case of Samuel K. Reichner against Caroline Vautier instituted in Common Pleas Court No. 2, March Term, 1906, No. 3768, but since transferred to Court No. 1, and the case of Samuel K. Reichner against Caroline Vautier instituted in the Court of Common Pleas No. 5, March Term, 1906, No. 3769, but since transferred to Court No. 1, and the case of Samuel K. Reichner to use of Winfield Reichner against Caroline Vautier in the Court of Common Pleas No. 5, June Term, 1906, No. 4772, shall be settled on the following terms and conditions:

"The sum of $2,500.00 to be paid by the said Caroline Vautier in settlement of the above cases and all and any claims against her subject to the judgment of Frank A. Barnett against Samuel K. Reichner and Caroline Vautier, garnishee, C.P. No. 4, March Term, 1906, No. 2448, together with interest and costs, subject also to all the claims and demands of the creditors of the estate of Charles Reichner in the Orphans' Court, October Term, 1903, No. 541, of which the said Samuel K. Reichner was administrator and now is under order of said court to file his account. The said Caroline Vautier also to be released from her bond of $2,000.00 entered in the office of the Register of Wills as security for Samuel K. Reichner for the faithful performance of his duty upon taking out letters of administration upon the estate of Charles Reichner, deceased. Also it is especially understood and agreed that after all costs, interest and claims above mentioned, including the cost of taking depositions, are met that all the above named cases shall be discontinued and marked on the docket settled and ended, and all judgments against the said Caroline Vautier where Samuel K. Reichner is the judgment creditor marked satisfied. And the balance in hand, if any, paid to the said George Bradford Carr, counsel for the said Samuel K. Reichner, and his formal receipt given therefor."

In pursuance of the above agreement Mrs. Vautier placed in the hands of Mr. Cadwalader the $2,500.00, which appears, according to his testimony, to have been actually paid him by Mr. Reichner. At the time the attachment was served on him he had made payments under the agreement which reduced the amount in his hands to $1,533.76. He had paid none of the claims of the creditors of the estate of Charles Reichner, deceased, which, according to the adjudication of the Orphans' Court, amounted to $1,701.18. Mr. Cadwalader testified under objection, that none of these claims had been paid at the time of the trial, and that, when they should be paid, there would be nothing left from the fund for Samuel K. Reichner, the defendant.

Plaintiff claimed that he was entitled to a verdict against the garnishee for the balance of $1,533.76 remaining in his hands, but the trial judge held that the claims of the creditors of Charles Reichner were first entitled to be satisfied out of the fund and instructed the jury that, if they believed from the testimony that those claims had not been satisfied, they should find for the garnishee. If they believed that they had been paid, their verdict should be for the plaintiff for the amount of the unpaid balance. The jury found a verdict for the garnishee upon which judgment was entered.

Errors assigned among others were in the following form:

9. The learned trial judge erred in refusing plaintiff's motion for binding instructions.

10. The court below erred in refusing plaintiff's motion for a new trial.

11. The court below erred in refusing plaintiff's motion for judgment, non obstante veredicto.

The assignments of error are dismissed, and the judgment is affirmed.

Jay R. Grier, for appellant. -- The facts show that no trust for the benefit of creditors of Charles Reichner estate was created: Beans v. Bullitt, 57 Pa. 221; Wallace v. Wainwright, 87 Pa. 263; Johnson's App., 103 Pa. 373; Burger v. Burger, 135 Pa. 499.

Even if the facts show an assignment in trust for the benefit of the creditors of Charles Reichner estate, such assignment not having been recorded as required by law, is void, as against the attaching creditor: Potts v. Mfg. Co., 25 Pa.Super. 206; Driesbach v. Becker, 34 Pa. 152; Colvin v. White, 200 Pa. 277; Wallace v. Wainwright, 87 Pa. 263; Englebert v. Blanjot, 2 Whart. 240; McCleery v. Stoup, 32 Pa.Super. 42.

The testimony of appellee as to the creditors of Charles Reichner estate being still unpaid was irrelevant: McCormac v. Hancock, 2 Pa. 310.

Clarence E. Kuemmerle, with him Thomas Cadwalader and William D. Neilson, for appellee. -- An attaching creditor stands in the shoes of the debtor, and any equities or defenses that could be set up against the latter by the garnishee are equally available against the former: Farmers' & Mechanics' Bank v. Little, 8 W. & S. 207; Riddle v. Etting, 32 Pa. 412; Patten v. Wilson, 34 Pa. 299; Reed v. Penrose, 36 Pa. 214; Fessler v. Ellis, 40 Pa. 248; Kuhn v. Warren Springs Savings Bank, 20 W.N.C. 230; Jarecki Manufacturing Co. v. Hart, 5 Pa. Superior Ct. 422; Meigel v. Connecticut Fire Insurance Co., 5 Pa. Superior Ct. 491; Howard Oil & Grease Co. v. Hughes, 12 Pa.Super. 311.

The record of the estate of Charles Reichner, deceased, in the Orphans' Court of Philadelphia County was admissible to prove the claims of the creditors of the estate of Charles Reichner, deceased: Mengel v. Fire Ins. Co., 5 Pa. Superior Ct. 491.

Even if the agreement of February 1st, 1907, could be construed as an assignment for the benefit of creditors and void because not recorded under the provisions of the Act of March 24, 1818, Section 5, 7 Smith's Laws, 131 (2 Purdon's Digest, Stewart's, page 1902), the appellant could not successfully attach the fund in question.

The agreement of February 1st, 1907, is not an assignment for the benefit of creditors and it was not necessary that it be...

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