Switow v. Sher
Decision Date | 07 February 1939 |
Citation | 136 Fla. 284,186 So. 519 |
Parties | SWITOW v. SHER et al. |
Court | Florida Supreme Court |
Creditor's bill by S. J. Switow to set aside allegedly fraudulent conveyance made by Jacob Sher and Samuel C. Levenson, wherein L. M. Gerstel, as trustee in bankruptcy of Charles Gordon filed petition for leave to intervene. From an order granting leave to intervene and an order denying plaintiff's motion to strike out intervener's answer and motion to dismiss intervener's cross-bill, the plaintiff appeals.
Orders affirmed. Appeal from Circuit, Court, Dade County; H. F. Atkinson, judge.
Marion E. Sibley, of Miami, and Whitfield & Whitfield, of Tallahassee, for appellant.
S. P Robineau, G. M. Budd, Jr., and Troy C. Davis, all of Miami for appellees.
The appeal brings for review order granting petition to intervene signed by the Honorable H. F. Atkinson on March 23, 1938, and recorded on the 24th day of March, 1938, in Chancery Order Book 463 at page 326, and that certain interlocutory order or decree signed by the Honorable H. F. Atkinson on July 5th 1938, and recorded on the 9th day of July, 1938, in Chancery Order Book 474 at page 427, in which the plaintiff's motion to strike the answer of the intervener and motion to dismiss the cross-bill of complaint of the intervenor L. M. Gerstel were denied.
Appellant poses three questions for our consideration as follows:
I. 'Where a plaintiff files a suit at common law as the owner and holder of a promissory note and thereafter files his creditors bill under Section 5035, Compiled General Laws of the State of Florida for 1927, seeking to set aside alleged fraudulent conveyances, may a stranger to such creditors bill intervene therein, over the objection of the plaintiff, for the sole purpose of contesting plaintiff's ownership of the promissory note?'
II. 'May a stranger to a creditors bill, who has intervened therein without order permitting him to intervene otherwise than in subordination to and in recognition of the propriety of the main proceeding, file a cross-bill against the plaintiff for the purpose of trying plaintiff's title to the promissory note sued upon by the plaintiff in a common law action, where the promissory note is not the subject matter of the equity suit?'
III. 'Is the subject matter of a cross suit which seeks to try title and ownership of a promissory note germane to the subject matter of a creditors suit which seeks to set aside fraudulent conveyances and hold property subject to the payment of the plaintiff's claim?'
The appellee submits that the second and third questions should be stated differently, or as follows:
Stated either way, the answers to the questions will be the same.
The record shows that in March, 1938, Switow exhibited his creditor's bill in the Circuit Court of Dade County, naming certain defendants, seeking to set aside an alleged fraudulent conveyance alleged to have been made by two debtors named defendants in that suit, one Jacob Sher and one Samuel C. Levenson, under the provisions of Section 3229, R.G.S., section 5035, C.G.L., which is as follows: 'A creditors' bill may be filed in the courts of this State, having chancery jurisdiction, before the claims of indebtedness of the persons filing the same shall have been reduced to judgment, but no such bill shall be entertained by such court, unless the complainants therein shall have first instituted suits in the proper courts at law for the collection of their claims; and no final decree shall be entered upon such creditors' bill until such claims shall have been reduced to judgment.'
In the bill it was alleged, inter alia,
Attached to the bill of complaint was copy of the note sued on in common law action marked Exhibit A and made a part of the bill, which is as follows:
'No. --- $14778.48 Miami, Florida,
'Deferred interest payments to bear interest from maturity at 8 percent. per annum, payable semi-annually.
'Due --- 193-
'The Lev-Sher Realty Co., Inc.
'By Sam'l C. Levenson, Pres. (Seal)
'Jacob Sher (Seal)
'Sam'l C. Levenson (Seal)
'Endorsed on back:
'Charles Gordon, Inc.
'By Charles Gordon, Pres.'
The bill prayed for relief against alleged fraudulent conveyances and asked for the appointment of a Receiver under the creditor's bill to take charge of the property alleged to have been fraudulently conveyed.
When the application for appointment of Receiver came on for hearing before the Honorable H. F. Atkinson, Judge of the Circuit Court of Dade County, Florida, on March 23, 1928, L. M. Gerstel, as Trustee in Bankruptcy of Charles Gordon, presented to the Judge his petition for leave to intervene in the creditors suit 'for the purpose of claiming and asserting and prosecuting the rights to said note as Trustee in Bankruptcy of Charles Gordon.'
Neither Charles Gordon nor Charles Gordon, Inc., was party to the law action nor to the suit instituted by way of creditors bill.
The record shows that upon the application for intervention being made the Chancellor called Switow, appellant here and plaintiff in the court below, as a witness, and during the examination the note, the cause of action sued on in the law action, was introduced in evidence. At the end of the hearing the Court, over objection of appellant's counsel, announced his intention to allow the petitioner to intervene.
The transcript shows that during examination of the witness by Mr. Robineau, Attorney for the Petitioner, the following occurred:
'Mr. Sibley: No.
'The witness: I don't think it is necessary.
'Mr. Robineau: Well, I think we will allow the necessity to be judged by the Court, and not yourself.
'Mr. Sibley: You say you want to hear from Mr. Robineau?
'Mr. Robineau: No; he said it follows the previous statement that I have made.
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