Subject_1Arrestment Subject_2Forthcoming Subject_3Heritable and Moveable.
Facts:
Circumstances in which held that a fund arrested was heritable, and the arrestment of it therefore inept. Decree of forthcoming following thereon suspended.
Headnote:
The question involved in this case was the competency of an arrestment and a forthcoming. The charger, Margaret Shearer, had a claim against the common debtor, John Learmont, which she constituted in 1863 by obtaining decree in absence against him. Having used an arrestment on the dependence in the hands of the trustees named in Learmont's father's settlement (under which he had right to a sixth share of the residue of his father's estate), she thereafter raised an action of forthcoming against the trustees, and obtained decree in absence, upon which they were charged. The trustees then brought a suspension of this decree in absence, which was passed in terms of the Act 1st and 2d Vict., cap. 86, sec. 5, and a record was made up in the suspension. After a proof had been allowed and taken, the Lord Ordinary (Ormidale) found as matter of fact, that at the date when the arrestment was used in the hands of the trustees, they were not indebted and resting-owing to the common debtor in any sum of money, and, for that reason, that in point of law the decree of forthcoming was not well founded and could not be maintained. He therefore suspended the decree and charge thereon, “reserving the effect otherwise of said arrestment, and in particular its effect, if any, in attaching the
jus crediti pertaining to the common debtor in the trust-estate of his father.” The Lord Ordinary referred in support of his judgment to the case of
Cunninghame v. Cunninghame, 28th February 1837 (
15 S. 687).
The charger reclaimed, and moved that the action of forthcoming should be sisted until that portion of the trust-estate which was heritable was sold off and the sum due to the common debtor was ascertained. She had also made this motion before the Lord Ordinary, who refused it. The Court to-day adhered to the Lord Ordinary's interlocutor, holding that the arrestment was inept. The judgment of the Court was delivered by
Judgment:
Lord Curriehill, who after narrating the above circumstances, said—This is a note of suspension, passed in terms of section 5 of 1 and 2 Vict. c. 86. It is proper to keep in view that the effect of passing the note was not to repone the suspenders. It is quite settled by decisions that the passing of such a note has not the effect of extinguishing the decree and charge, but simply of sisting them until the note is refused or decree of suspension is pronounced. It has also been settled that the record should be made up in the suspension process, as was done here. There are various reasons of suspension stated, but it is not necessary to deal with all of them. The only one which requires to be dealt with is, I think, intended to be stated in the 4th plea in law. It was stated to us in argument that as the trustees had not realised the property of the estate, and as they therefore had no money with which to pay the common debtor his share of the residue, the arrestment was therefore an inept diligence. I cannot sustain the plea stated in that broad way. Suppose there had been sufficient moveable estate out of which the share could have been paid, I think the arrestment would have been quite valid. This was settled in the cases of
Grierson v. Ramsay, 25th February 1780 (M. 159, and Hailes 855), and
Douglas v. Mason, 1796 (M. 16,213); and these cases have been since acted upon. I therefore think there was a fund attachable by legal diligence although it had not been realised. But that is not conclusive, for the question arises, what kind of diligence was appropriate? That depends on whether the fund was heritable or moveable. If moveable, and so far as moveable, arrestment was the proper diligence. If heritable, it was not attachable by arrestment. That leads me to consider whether the right of the common debtor in his father's estate was heritable or moveable. That depends on the construction of the trust-deed. By it the truster conveyed his whole property, heritable and moveable. The purposes of the trust were the payment of his debts, the delivery of his stock-in-trade to his two sons, William and Thomas, the payment of certain money provisions to his two daughters, and the division of the residue among his six sons and daughters. The only provision in favour of the common debtor was this sixth part of residue. This deed was executed in 1851. In 1852 the truster married again, when he granted a bond of annuity of £50 to his wife. That, of course, created a debt. In 1859 he made it a real burden on his heritage, and at the same time he made over to his wife his household furniture, &c. According to the state of the deceased's affairs at his death, it appears that after payment of the truster's provisions, there was not sufficient moveable estate to pay his debts. It therefore follows that there was nothing but heritage out of which the residue could be paid. That being the state of matters, the fund is heritable, unless the trust-deed contains a direction or power to convert it into money before division. I find in the deed no such power. Whether it may turn out afterwards that it is necessary to convert before
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division is not the question now before us. At present all that the common debtor can claim from the trustees is heritage. It appears to me, therefore, that the diligence here used was inept.
The defenders moved for expenses, which, after discussion, they were allowed, but subject to substantial modification, in respect (1) they had allowed decree in absence to pass against them; and (2) they had not pleaded the invalidity of the diligence on the ground now adopted by the Court.
Counsel:
Counsel for Charger—
Mr C. Scott. Agent—
Mr James Barton, S.S.C.
Counsel for Suspenders—
Mr G. H. Pattison and
Mr Alexander Blair. Agent—
Mr John M'Cracken, S.S.C.