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Held (1) that it is incompetent to use arrestments on the dependence of an action of reduction or of any other action containing no petitory conclusion other than that for expenses; (2) that a conclusion for expenses is not a “conclusion for payment of money” within the meaning of the Statute 1 and 2 Vict. cap. 114, sec. 16.
This was a petition praying for the recall of arrestments used upon the dependence of an action at the instance of Mrs M'Laurin and her husband against Mrs Stafford and her husband. The summons in that action concluded for reduction of a disposition granted by the pursuers in favour of Mrs Stafford, and of a ratification of the disposition by Mrs M'Laurin, both dated the 12th November 1874. The summons contained no further conclusion except for expenses.
Upon the 6th October following, the pursuers, by virtue of letters of arrestment purporting to be on the dependence of the action of reduction, arrested in the hands of John Sinclair, merchant, Oban, and Robert Lawrence, writer, Oban, all sums of money due by them to the petitioners.
The petitioners presented this petition to the Lord Ordinary under the Act 1 and 2 Vict. cap. 114, sec. 20, praying that the arrestments might be recalled on the ground that they were incompetent and without warrant, and further, that they were nimious and oppressive, and used for the purpose of embarrassing the petitioners.
The Lord Ordinary pronounced the following interlocutor:—
“19 th October 1875.—Having heard counsel, recals the arrestments complained of, except to the extent of £100 sterling, and decerns, reserving the question of expenses.”
The petitioners reclaimed, and argued—The action was one of reduction, and contained no pecuniary conclusion except for expenses. A conclusion for expenses was not a “conclusion for payment” falling under 1 and 2 Vict. c. 114, sec. 16; and apart from the statute, did not warrant arrestment. Moveable property could not be attached unless in respect of a debt already due. It was true that arrestment covered expenses, but these were incidents of the general claim, and followed it. If the case of Ross v. Renton, M. 690, were held to govern, the matter was already decided.
Authorities— Ross v.Renton, M. 690; Erskine's Inst. iii. 6, 10; Bell's Comms. (MacLaren's edition) ii. 67; May v. Malcolm, June 7, 1825, 4 S. 76; Telford's Exr. v. Blackwood, Feb. 3, 1866, 4 Macph. 369; Dove v. Henderson, Jan. 11, 1865, 3 Macph. 339; Weir v. Otto, July 19, 1870, 8 Macph. 1070; Statute 1592, cap. 144; Shand's Practice, 226; Wilkie v. Tweedale, Feb. 25, 1815, F.C.
The respondents argued—Arrestment covered expenses, and therefore arrestment upon a conclusion for expenses was valid. A conclusion for expenses was a conclusion for “payment of money.”
Authorities—Statutes 33 Geo. III., cap. 74, sec. 3, and 54 Geo. III., cap 137, sec. 2; Thomson v. Butter, M. 1225; Wight v. Wight, May 23, 1822, 1 S. 424; M'Donald v. Halket, Feb. 2, 1825, 3 S. 494; Ritchie v. M'Lachlan, May 27,1870, 8 Macph. 815.
At advising—
But there are various other authorities which have been referred to, and which are of great importance, because in these cases it was undoubtedly taken for granted that such a diligence as has been used here would have been incompetent. For example, there is the case of Telford's Executor v. Blackwood, 4 Macph. 369, in which the petitioner prayed for recall of arrestments used upon the dependence of an action of count, payment and reckoning. This action concluded for payment by the defenders to the pursuers of the amount that should appear to be due to them, while the pursuers at the same time expressed willingness to pay to the defenders whatever balance, if any, might be found after the count and reckoning to be due by them. With great difficulty the Second Division, when I sat there, held that the arrestment was competent, upon the ground that the conclusion was for payment of a sum of money apart altogether from the separate conclusion for a sum in name of expenses. If the conclusion for expenses had been considered to warrant the arrestment, we should have had no reason to consider the other point. That and a variety of other decisions are not direct authorities, but go greatly to aid the inference we draw from the case of Weir v. Otto.
The only difficulty which has been suggested arises from the consideration that arrestment covers the expenses of process, and in like manner the interest which may accrue on the principal sum from the date of citation. From this it is argued that in its original use it was intended that it should so secure the expenses, and did have this effect. But I think it was a good answer which was made to this argument that expenses and interest are future debts not due at the date of the arrestment on the dependence, and therefore not covered by it. They only afterwards become a part of the debt, as incidents of and outgrowths from it, and are recoverable under the ultimate process of furthcoming. That is a good explanation of the difficulty.
The argument used on both sides upon the words of the statute 1 and 2 Vict. cap. 114, secs. 16 and 17, is not of much avail. The words of these sections give authority to insert in the summons a warrant of arrestment, and describes the summons on the dependence of which, after the insertion of a warrant, effectual arrestment may proceed, as a summons “concluding for payment of money.” It is contended on the one side that this can only be an action of debt concluding for payment of a sum of money; on the other, that a summons in which the only conclusion for payment is for expenses, is in strict language within the section of the Act. But the determination of the construction of these words of the statute brings us back to what we have already been considering. This statute must refer to summonses which conclude for payment of a principal sum of money.
It has neither been established by practice nor by decision that this arrestment is good, and the appeal to the Act of Parliament is equally unavailing. I cannot assent to the view of the Lord Ordinary, and I am of opinion that the arrestment must be recalled in toto.
The diligence which the law allows either by arrestment or by inhibition on the dependence of an action is an extraordinary remedy, and being so, it is not to be extended beyond the length to which by practice it has been carried. No instance has been cited where the privilege of that extraordinary remedy has been given in an action which contains conclusions for payment of nothing further than of expenses. All the authorities, so far as they go, are against such a proceeding. An arrestment on the dependence might then be used in every action. The conclusion for expenses is no part of the summons, and it is to be held as merely expressing that which is an incident of the action. I quite agree with your Lordship that the explanations with which we were favoured against the argument which was used by the respondent, that arrestment covers expenses where these are allowed, were perfectly satisfactory.
If I were to construe the statute, I should be of opinion that the conclusion for expenses is no part of the conclusions of the summons as therein referred to. To lead to the opposite result, we should expect first that the practice should support it, and the burden lies on those who maintain
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Arrestments in security on the dependence of an action is an extraordinary remedy,—an equitable and appropriate remedy,—but not, I think, to be extended beyond the limits which have been sanctioned by law, and recognised by practice.
I do not think the case turns on the statute of 1 and 2 Vict. The competency of using arrestments does not depend on that statute, though the procedure in arrestment was regulated. I agree with your Lordship in the chair in regard to this Act. I have no doubt that where there is a petitory conclusion for money, an arrestment on the dependence will be available to the pursuer to cover expenses.
When competently used as regards the leading petitory conclusion, it will be effectual to secure the expenses. This result is, I think, right on principle, the expenses as it were growing during the procedure, and attaching to the debt concluded for; and it is according to practice.
But on this summons there is no allegation of a present debt, no conclusion for a present payment, no ground for the extraordinary diligence of arrestment on the dependence.
The point has been decided in regard to inhibition in the case of Dove v. Henderson, 11th January 1865, and in the case of Weir v. Otto, 19th July 1870. Both judgments—one in each Division—were unanimous. In the first of these cases the opinion of Lord Curriehill, and in the last the opinion of Lord Justice-Clerk (Moncreiff), are conclusive; and the law has been so assumed in other cases, and so far as I have been able to ascertain, the use of either prohibition or arrestment to secure expenses only, where there is no petitory conclusion in the summons, is unknown in practice. No precedent for it has been adduced.
On principle, the able argument of Mr Balfour was to my mind quite satisfactory. In point of authority, the only decisions truly in point are adverse to the competency; for as regards this question, I am unable to perceive any sound distinction between inhibition and arrestment. And to sustain this arrestment would be against usage and without precedent, contrary, as I believe, to the understanding and practice of the legal profession.
Counsel for Petitioners— Balfour— J. P. B. Robertson. Agent— Thomas White, S.S.C.
Counsel for Respondents— Dean of Faculty (Watson)— Asher. Agents— Hamilton, Kinnear, & Beatson, W. S.