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HENLEY v. COLONIAL STAGES SOUTH INC. et al.

Supreme Court of Georgia1937-05-18No. No. 11794
184 Ga. 445

Summary

Holding. The Court of Appeals, not the Supreme Court, has jurisdiction because the case involves only legal relief (money judgment with a special lien on garnished funds) rather than equitable relief, notwithstanding the petition's initial equitable characterization. The case is transferred to the Court of Appeals.

Colonial Stages South Inc. sued J. A. Henley and E. E. Barfield in superior court to recover money owed on notes and contracts. Although the petition was filed as an equity case citing the defendants' insolvency and requesting appointment of a receiver over their bus line franchise, no receiver was ever appointed. Henley answered with purely legal defenses denying the debt. After Henley was declared bankrupt, the trial court directed a verdict for the plaintiff awarding a money judgment with a special lien against funds obtained through garnishment, and imposed a perpetual stay on other execution.

The jurisdictional issue was whether this case qualified as an equity matter within the Supreme Court's jurisdiction or a legal matter within the Court of Appeals' jurisdiction. The court determined that although the original petition contained equitable elements, all equitable features were eliminated during the proceedings. The plaintiff ultimately sought only a money judgment with a special lien on garnished funds—legal relief—while the defendant raised only legal defenses in opposition. A receiver's involvement as a substituted party did not change the legal character of the case.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a case initially pleaded as equity retains equitable character when all equitable features are eliminated during proceedings
  • Whether requesting a special lien on garnished funds constitutes equitable or legal relief
  • Whether substitution of a receiver as plaintiff affects the equitable or legal nature of a case

Procedural posture

The defendant appealed by writ of error following the trial court's directed verdict for the plaintiff and denial of the motion for a new trial.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Bell, Justice.

The Court of Appeals, and not the Supreme Court, has jurisdiction of this case. The jurisdictional question is whether the writ of error presents an “equity case.” Code, § 2-3005. Colonial Stages South Inc. filed a suit in the superior court of Lowndes County against J. A. Henley and E. E. Bar-held, residents of that county. The main purpose of the suit was to recover a money judgment upon several notes and contracts on which the defendants were alleged to be indebted. The petition was filed, however, as a suit in equity, because of alleged insolvency of the defendants, with the exception of a franchise to operate a bus line in which they were interested and as to which a receiver was prayed. The petition also prayed that the defendant Barfield be required to answer in detail as to any claim or claims which he might have against his codefendant Henley, and “that petitioner have such other relief as to the court may seem right and proper.” No action was ever taken on the application for a receiver, and no appearance was made by the defendant Barfield. Henley filed an answer denying any indebtedness to the plaintiff, and at later stages of the case asserted other alleged defenses, none of which was equitable in nature. After ■ the suit was filed, Colonial Stages South Inc. was dissolved as a corporation, and J. B. Copeland as receiver of its assets in the State of Georgia was made a party plaintiff in its stead. Pending the-action a. garnishment was servedupon a resident of a different county, and the garnishee filed an answer in the superior court of that county, as required by the summons, admitting that he was indebted to the defendant in a stated sum. Before verdict the defendant Henley was adjudicated a bankrupt, and filed a plea seeking to stay the action. At the close of the evidence the judge directed a verdict in favor of the plaintiff for a stated sum of money, providing, however, that the judgment should be collected and satisfied solely out of the fund in garnishment, and granting a perpetual stay of execution otherwise. The court also directed that the plaintiff should have a special lien upon the fund, and all these conditions were stated in the verdict and judgment. The defendant filed a motion for a new trial containing the usual general grounds, to which other grounds were added by amendment. The court overruled the motion, and the defendant excepted. The judgment overruling the motion for a new trial is the only judgment or ruling assigned as error in the bill of exceptions. As the ease was presented at the trial, the plaintiff was asking only -for a money judgment with a special lien on- the fund in garnishment, while the defendant was merely resisting the grant of such relief, on grounds purely defensive.

The plaintiff in asking for the special lien against the fund in garnishment was not seeking equitable relief. Carlton v. Reeves, 157 Ga. 602 (3) (122 S. E. 320); Bennett v. McConnell, 88 Ga. 177 (3) (14 S. E. 208); Marshall v. Charland, 109 Ga. 306 (2), 309 (34 S. E. 671). Nor does the fact that the verdict and judgment were obtained by a receiver as substituted plaintiff make the case one in equity. Brightwell v. Oglethorpe Telephone Co., 176 Ga. 65 (166 S. E. 646). It thus appears that all of the equitable features of the case have been eliminated, and that the only questions involved under the writ of error relate to the legal relief as obtained by the plaintiff and opposed, by the defendant. It follows that the Court of Appeals, and not the Supreme Court, has jurisdiction. Burress v. Montgomery, 148 Ga. 548 (3) (97 S. E. 538); Taylor Lumber Co. v. Clark Lumber Co., 159 Ga. 393 (125 S. E. 844); United States Fidelity & Guaranty Co. v. Koehler, 161 Ga. 934 (132 S. E. 64); Coats v. Casey, 162 Ga. 236 (133 S. E. 237); Byrd v. Piha, 169 Ga. 115 (149 S. E. 699); Martin v. Deaton, 172 Ga. 557 (158 S. E. 331; Collier v. Barnesville, 174 Ga. 294 (162 S. E. 530); Brightwell v. Oglethorpe Telephone Co., 176 Ga. 65 (166 S. E. 646).

Transferred to the Court of Appeals.-

All the Justices concur.