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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Ferrier (Connell's Trustee) v. Bushnan and Others [1878] ScotLR 15_413 (6 March 1878)
URL: http://www.bailii.org/scot/cases/ScotCS/1878/15SLR0413.html
Cite as: [1878] SLR 15_413, [1878] ScotLR 15_413

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SCOTTISH_SLR_Court_of_Session

Page: 413

Court of Session Inner House First Division.

Wednesday, March 6. 1878.

[ Lord Rutherfurd Clark, Ordinary.

15 SLR 413

Ferrier (Connell's Trustee)

v.

Bushnan and Others.

Subject_1Process
Subject_2Multiplepoinding
Subject_3Competency.
Facts:

Where there was neither double distress nor the refusal of beneficiaries to concur in granting a discharge— held that a trustee is not entitled to raise a multiplepoinding in order to try the question, whether the only claimant of the fund in dispute has a valid title to grant a discharge.

Headnote:

The pursuer in this action was the surviving trustee under the trust-disposition and settlement of the late Miss Susan Graham Connell, and the subject in dispute was a legacy of £500 which the truster left to her nephew Mr Newton O. R. Bushnan. This legacy was subject to the liferent of the truster's sister Mrs Bushnan, who died in September 1875. Previous to this date, on 30th November 1866, Mr Bushnan executed an indenture of mortgage, in English form, by which he assigned all that he might become entitled to receive under the will of Miss Connell to Mr John Laws Milton, his executors, administrators, and assigns, with power to them to sue in his name. On the 15th October 1868 Mr Bushnan, becoming bankrupt, assigned his estate and effects to Mr Smallpage, one of his creditors in London, as trustee under the Bankruptcy Act 1861. In 1876, on the death of the liferentrix Mrs Bushnan, Mr Smallpage demanded payment of the £500 upon a discharge to be granted by himself alone. The pursuer objected to accept this discharge without satisfactory evidence that the preferable creditor's claim was satisfied. Eventually Mr Smallpage withdrew his claim, and assented to the whole legacy being paid to Mr Chalk, as assignee of the first mortgagee Mr Milton. The mortgage was assigned to Mr Chalk on the 7th September 1876. He offered the pursuer a complete discharge, but the pursuer doubting Chalk's title considered it

Page: 414

necessary to raise this action of multiplepoinding, calling as defenders Bushnan, Smallpage, Chalk, and Milton.

The defender Chalk pleaded, inter alia—“The action is incompetent, in respect that there is no double distress, and that in any view this is an incompetent process for the purpose of trying the question—Whether the only claimant of the fund in question has a valid title to grant a discharge?”

The Lord Ordinary dismissed the action, finding the pursuer liable in expenses.

The pursuer reclaimed, and argued—If there was no judicial discharge, Smallpage might repeat his claim—indeed, it might be doubted whether he was legally entitled to waive it. There was no actual double distress, but that was not absolutely necessary.

Authorities— Taylor v. Robinson and Others, May 24, 1836, 14 S. 817; Dunbar v. Sinclair, Nov. 14, 1850, 13 D. 54; Mitchell v. Strachan, Nov. 18, 1869, 8 Macph. 155 (Lord Benholme); Park v. Watson, Nov. 21, 1874, 2 R. 118.

Argued for Chalk—The discharge offered was a good and sufficient one; but even were it otherwise, a multiplepoinding was not a proper form of action for trying this question of title, as there was no double distress, and the authorities showed that where there was no double distress those bound to grant a discharge must have refused to do so in order to make a multiplepoinding competent.

Authority— Moncrieff v. Thomson, June 1, 1844, 6 D. 1100.

At advising—

Judgment:

Lord President—It is of course the object of the pursuers in this multiplepoinding to represent it as one of those cases in which trustees holding the universitas of an estate are permitted to throw the estate into Court for distribution by a multiplepoinding, not because there are competing and hostile claimants, but because the beneficiaries will not concur in granting a complete discharge. It is an established rule that trustees in these circumstances are entitled to come into Court by a multiplepoinding. But what is the position of the pursuer here? He has a definite sum of money—£500—which, under deduction of legacy-duty, makes a net sum of £484, 2s. 6d. He is debtor in that sum, and the fact that he is debtor as trustee does not affect the question at all. He is not entitled to bring a multiplepoinding unless he can show that there is double distress. Now, this he has totally failed to do. His only object is that it may be settled what discharge he is entitled to get. I have not the least hesitation in saying that a multiplepoinding is an incompetent form of action for this purpose. I think the case of Moncrieff is directly in point. If the debtor is not satisfied with the discharge which is offered he has an obvious remedy. If the debt is on a bond and disposition in security, as it was in Moncrieff, it is suspension. If it is an ordinary debt, the remedy is to let the creditor raise an action for payment, and in defence the debtor will have an opportunity of saying that the discharge offered is not enough. That is the proper form of action here.

Lord Deas, Lord Mure, and Lord Shand concurred.

Counsel:

Counsel for Pursuer and Reclaimer— Campbell Smith. Agent— Party.

Counsel for Defender and Objector (Chalk)— Kinnear.— Jameson. Agents— Mylne & Campbell. W.S.

1878


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URL: http://www.bailii.org/scot/cases/ScotCS/1878/15SLR0413.html