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[Sheriff Court at Glasgow.
(See Leggat Brothers v. Gray, 1908 S.C. 67, 45 S.L.R. 67.)
Sheriff — Jurisdiction — Arrestment — Furthcoming — Sheriff Courts (Scotland) Act 1907 (7 Edw. VII, cap. 51), sec. 6 (9).
The Sheriff Courts (Scotland) Act 1907, First Schedule, Rule 50, provides—“When a deed or writing is founded on by any party in a cause, all objections thereto may be stated and maintained by way of exception without the necessity of bringing a reduction thereof.”
Held that a decree in foro was not a deed or writing in the sense of the rule.
The Sheriff Courts (Scotland) Act 1907 enacts, section 6—“Any action competent in the Sheriff Court may be brought within the jurisdiction of the sheriff … ( g) Where in an action of furthcoming or multiple-poinding the fund or subject in medio is situated within the jurisdiction, or the arrestee or holder of the fund is subject to the jurisdiction of the Court.”
Held that where the arrestee was subject to the jurisdiction it was unnecessary to found jurisdiction in a furthcoming against the common debtor.
The Sheriff Courts (Scotland) Act 1907 (7 Edw. VII, cap. 51), section 6, and First Schedule, Rule 50, are quoted in the rubrics ( supra).
Leggat Brothers, printers, Port-Dundas, Glasgow, pursuers, raised in the Sheriff Court at Glasgow an action of furthcoming against Moss' Empire, Limited, of 23 York Place, Edinburgh, having a place of business in Sauchiehall Street, Glasgow, arrestees, and George Gray, music hall artiste, “whose only known address is The Savage Club, Adelphi Terrace, London,” the common debtor.
The claim or demand of the pursuers was—“That there should be made available to them for satisfaction of—(First) The sum of £125 sterling, with interest thereon from the 19th day of January 1910, (Second) the sum of £20, 0s. 11d. sterling of expenses, and (Third) for the expenses of this process, 145 preference shares and 100 ordinary shares held by the defender, and registered in the name of George Herbert Gray, of Moss' Empires, Limited, and which shares are numbered as follows, … the said sums of £125 sterling, with interest as aforesaid, and £20, 0s. 11d. sterling of expenses, being the amounts contained in an extract decree obtained by the pursuers in the Sheriff Court of Lanarkshire at Glasgow in an action at their instance against the defender George Gray, upon the dependence of which action the pursuers on the 18th day of February 1910 used arrestments in the hands of the defenders Moss' Empires, Limited.”
The pursuers accordingly craved the Court to grant warrant to a stockbroker to sell the shares or such a number as might be sufficient to satisfy their claim.
The pursuers in evidence of their claim produced the extract decree, which was in the following terms—“At Glasgow, the fifteenth day of June, and fourth day of July Nineteen hundred and ten, in an action in the Sheriff Court of the County of Lanark at Glasgow, at the instance of Leggat Brothers, printers, one hundred and seven Bishop Street, Port-Dundas, Glasgow, pursuers, against George Gray, music hall artiste, presently performing at The Palace Theatre of Varieties, Main Street, Gorbals, Glasgow, defender, the Sheriff decerned the defender to pay to the pursuers One hundred and twenty-five pounds sterling, with interest thereon from the Nineteenth day of January Nineteen hundred and ten, and twenty pounds and elevenpence of expenses: And the Sheriff grants warrant for all lawful execution thereon by instant arrestment, and also by poinding after a charge of seven free days if the defender is within Scotland, and fourteen free days if furth thereof.”
The pursuers also produced the execution of the arrestments on the dependence referred to in their claim.
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Defences were lodged in the action of furthcoming for George Gray, the common debtor. His defence was threefold.
He averred—“At the time said action, i.e., the action of constitution, was raised, and during the dependence thereof, there was no jurisdiction to entertain it. No such action was served upon him, and he gave no instructions to anyone to defend such an action. The said decree is inept, irregular, and illegal, and the said decree does not constitute any debt against this defender. It is referred to for its terms, beyond which no admission is made.
He also averred—“The execution of arrestment is referred to for its terms, beyond which no admission is made. Explained that the said arrestments are inept, invalid, and illegal, in respect that they were used against a foreigner without jurisdiction having been constituted against him. Explained that the defender was not aware of said arrestment until the present action was raised, no notice of these or of any arrestments having been made to him.”
In the third place he made averments to the effect that the shares arrested were not really his, but fell under a postnuptial marriage contract which he was bound to make in virtue of an antenuptial agreement. On this third defence the case is not reported.
The pursuers pleaded, inter alia—“(1) No relevant defence. (4) The defender George Gray being indebted to the pursuers in the sums mentioned in the condescendence, and the said shares having been duly attached by arrestment, warrant to sell and apply the proceeds as craved, and authority to register should be granted with expenses.”
The defender pleaded, inter alia—“(1) The action is incompetent. (2) The action is irrelevant. (4) No jurisdiction in the action of constitution or in the action of furthcoming following upon it. (5) Said arrestments being inept, invalid, and illegal in respect they were used on the dependence of an action against a foreigner without jurisdiction having been constituted against him, the action should be dismissed. (6) Said arrestment being inept, invalid, and illegal in respect of no service, either of the action of constitution or of the warrant to arrest, the action should be dismissed.”
On 16th November 1910 the Sheriff-Substitute ( Fyfe) pronounced this interlocutor—“Repels the first plea for defender, the common debtor; sustains pursuers' first plea; grants leave to appeal.’
Note—“Strictly speaking, as I have sustained pursuers' plea to the relevancy of the defence, I should remit to a stockbroker to sell the shares, but that would not be an appealable interlocutor, and it would be obviously useless to consider the competency or the relevancy of the defence if the shares have been sold. Both parties accordingly request that I should at present pronounce only upon the first plea stated for each party, and grant leave to appeal.
“I have no hesitation at all in repelling the defender's first plea. The action is an action of furthcoming following upon a decree of this Court. If the decree is to stand, the validity of the execution of arrestment is not challenged. The only ground for the plea of incompetency is that jurisdiction was not founded in the action in which decree has been granted. In other words, the defender now wants to get behind the decree. That he cannot competently do in this Court either in the present process or any other. A decree of Court cannot be reduced by exception, for it is not a deed or writing in the sense of Rule 50 of The Sheriff Courts Act 1907. A direct action of reduction not being competent in the Sheriff Court, the only notice which I could take here of the defender's first and fourth pleas would be to sist this process to await the issue of an action in the Court of Session to reduce the decree.
The defender, however, does not ask the process to be sisted, but wants to challenge the decree in this Court, and that, in my opinion, is clearly incompetent.”
The defender appealed, and argued—It was necessary to constitute jurisdiction against the common debtor, but this had not been done. There had been no arrestment, jurisdictionis fundandæ causa, in the action of constitution, and accordingly the arrestment on the dependence and the decree of 12th July 1910 were invalid. The decree should be set aside, ope exceptionis, under Rule 50 of the First Schedule to the Sheriff Courts (Scotland) Act 1907 (7 Edw. VII, cap. 51). Even if that decree could not be so set aside, the furthcoming was a fresh process and should have been preceded by arrestment jurisdictionis fundandæ causa— Wightman v. Wilson, March 9, 1858, 20 D. 779; Harvey, Hall, & Co. v. Black & Son, June 21, 1831, 9 S. 785; Burn v. Purvis, December 13, 1828, 7 S. 194. At the most Burns v. Munro, July 18, 1844, 6 D. 1352, merely decided that it was not necessary to found jurisdiction afresh if the furthcoming were raised in the Court of Session. The Sheriff Courts Act 1907, section 6, had not taken away the rule of Wightman. Reference was also made to Graham Stewart on Diligence, p. 228.
Argued for the pursuers and respondents—The decree of 12th July was a decree in foro, and could not be set aside ope exceptionis. The furthcoming was merely ancillary to the arrestment on the dependence. Wightman ( cit. sup.) was decided prior to the Sheriff Courts (Scotland) Act 1876 (39 and 40 Vict. cap. 70). By that Act, section 47, an action of furthcoming was declared competent before a Sheriff, to whose jurisdiction the arrestee was subject, and the common debtor did not require to be subject to the jurisdiction, but provision was made for his citation. The provisions of section 6 of the Act of 1907 were similar, except that under them even citation of the common debtor was unnecessary.
At advising—
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The decree which the pursuers produce is evidenced by an extract decree for payment obtained in the Sheriff Court at Glasgow on 12th July 1910 in causa Leggat Brothers v. George Gray. The defender in that action, the common debtor, has appeared in this furthcoming, and pleads on three grounds that no decree should be granted.
His first ground is that he is not subject to the jurisdiction of the Sheriff Court in Glasgow, and that the decree of 12th July 1910 is inept. The answer to that is that the extract decree, beyond which in this case we cannot go, shows on the face of it that it is a decree in foro, and I think it is quite clear that rule 50 of the First Schedule to the Sheriff Courts Act 1907 does not apply. By that rule it is enacted—“When a deed or writing is founded on by any party in a cause, all objections thereto may be stated and maintained by way of exception without the necessity of bringing a reduction thereof.” I am clearly of opinion that a decree of Court is not a “deed or writing” in the sense of that rule, and so long as the decree is not reduced, it is beyond our competency to consider whether it was rightly granted or not.
The second objection is that no steps were taken by arrestments jurisdictionis fundandæ causa in this action of furthcoming. The arrestments which are the foundation of the furthcoming were executed on the dependence of the action in which we have an extract decree in foro. Whatever may have been the law in the cases quoted, this point seems to me to be settled by the Sheriff Courts Act 1907, which enacts—section 6—“… [ quotes, v. sup.] …” In this case the arrestees, Moss' Empires, Limited, are admittedly within the jurisdiction of the Sheriff Court at Glasgow. Accordingly I think that the second objection is settled by the statute. I only say this, that that being so, I do not make any pronouncement as to what mode of intimation would be necessary to give the common debtor a fair chance of being heard, especially in the case where the decree on which the arrestments are used was a decree in absence. That question is obviously of no moment in this case, because the common debtor has had sufficient intimation to make him appear, and therefore he cannot be heard to complain of want of notioe. I only say this by way of precaution, because I think the Sheriff Courts Act makes it unnecessary to found jurisdiction against the common debtor, and if the decree which the pursuers hold had been a decree in absence it would have been neoessary to see that the common debtor had got fair notice that his property was being taken in execution.
The only other matter is that of the supposed transference of the shares in question by an alleged marriage contract. I think the Sheriff-Substitute has satisfactorily dealt with that matter. Accordingly upon the whole matter I think the appeal should be refused.
The
Having now discovered that there are shares in Moss' Empires registered in the common debtor's name, the pursuers have raised another action against him, this time in the Sheriff Court at Glasgow, but without, so far as appears—and this, in the absence of any assertion by the pursuers to the contrary, I assume is the fact—arresting to found jurisdiction, and have obtained decree. This decree is undoubtedly one in foro, though again this is not directly stated, nor are we told how the defender was cited for £125 with £20, 0s. 11d. of expenses. I say undoubtedly, for the extract does not bear that the decree was in absence, as I think it would if that
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I am therefore for adhering on this branch of the case.
But the common debtor maintains further that there was nothing to attach. Here also. I agree with the Sheriff, and for the reasons given by him.
The Court dismissed the appeal, affirmed the interlocutor of the Sheriff-Substitute dated 16th November 1910, and remitted the cause to him to proceed.
Counsel for the Pursuers and Respondents— Horne, K.C.— Christie. Agent— James G. Bryson, Solicitor.
Counsel for the Defender and Appellant— Crabb Watt, K.C.— Kemp. Agent— James D. Turnbull, S.S.C.