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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> North British Railway Co. v. White and others [1881] ScotLR 19_59_1 (4 November 1881)
URL: http://www.bailii.org/scot/cases/ScotCS/1881/19SLR0059_1.html
Cite as: [1881] SLR 19_59_1, [1881] ScotLR 19_59_1

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SCOTTISH_SLR_Court_of_Session

Page: 59

Court of Session Inner House Second Division.

[Sheriff-Substitute of Midlothian.

Friday, November 4. 1881.

19 SLR 59_1

North British Railway Company

v.

White and others.

Subject_1Process
Subject_2Multiplepoinding
Subject_3Competency.

Mandatory
Subject_4Foreigner claiming in Multiple-poinding.
Facts:

Creditors of S., who was notour bankrupt, and who was alleged to have made a pre-tended sale of his household furniture to R., his brother-in-law, who resided in Dublin, arrested the furniture in the hands of a railway company with whom the brother-in-law had placed it for conveyance to his address in Dublin. The creditors having raised a multiplepoinding in the Sheriff Court to have the right to the furniture determined, R.

Page: 60

objected to the competency of the action, on the ground that the furniture was his under a contract of sale which must stand unless reduced in the Supreme Court, and that as it must be held by the Sheriff to be his until such reduction, the arrestments were inept, and there was no double distress. Held that the multiplepoinding was competent.

Opinions that in the circumstances R. was not bound to sist a mandatory to enable him to claim in the multiplepoinding.

Headnote:

Charles Seton, who resided at 35 Lorne Street, Leith Walk, Edinburgh, having in March 1881 gone over to Dublin, granted while there, to David R. Roberts, his brother-in-law, a receipt dated Dublin, 19th March, 1881, and bearing to be for £135, 10s., as the amount agreed upon to be accepted by him for the whole furniture and plenishing in his house 35 Lorne Street, Leith Walk, which furniture and plenishing were thereby declared to be sold to Roberts, with full power to him to remove them when it might suit him. He bound himself also to relieve Roberts of all liability with regard to the half-year's rent of the house then coming due. On 14th April 1881, Robert White, grocer, Leith, obtained decree against Seton in the Sheriff Court of Midlothian for a sum due by Seton to him, with interest and expenses. On 2d May the furniture was delivered by Roberts to the North British Railway Co. at Edinburgh, consigned to himself at Dublin, and a receipt was granted to him therefor. On the same date the furniture was arrested in the hands of the railway company as belonging to Seton by White in respect of the decree he held against Seton, and by William Massie and David Wilson on the dependence of actions they had raised against Seton, and in which they subsequently obtained decree. On 14th May a further arrestment was laid on the furniture by G. & J. Walker, in virtue of a bill of which Seton was acceptor, and which had been protested for non-payment and duly registered. On 12th May White raised this action of multiplepoinding in name of the railway company to have the right to the furniture determined. Roberts was not called in this action, but was sisted as a defender by minute, and objected to the competency of the multiplepoinding. He averred that the furniture was his, and had been taken delivery of by him, and was held for him by the railway company, and that none of the arresters had any claim against him. He therefore pleaded that the arrestments were inept, and that there was no double distress. The real raiser averred in answer that there was no bona fide transaction between Seton and Roberts, who was his brother-in-law, and a conjunct and confident person; that Seton was insolvent at the date of the alleged sale, and was now notour bankrupt, and that the pre-tended sale was an attempt to defeat the diligence of his creditors. He also pleaded that Roberts being a foreigner was bound to sist a mandatory. Claims were also lodged for the other arresting creditors of Seton. The Sheriff — Substitute ( Hallard) on 1st July found the multiplepoinding competent, and ordained Roberts to sist a mandatory, and on appeal the Sheriff adhered. Roberts then, without prejudice to his previous defences, lodged a claim to the whole furniture as being his property. He did not sist a mandatory. On 7th October the Sheriff-Substitute, in respect of his failure to sist a mandatory, disallowed his claim.

Roberts appealed to the Second Division, and argued—The furniture being his, the arrestments used on the footing that it was Seton's were null. If this sale were reducible, as the arresting creditors of Seton alleged, it must be first reduced in the Court of Session, the only Court competent to such a reduction, before the arresting creditors could claim it as Seton's. In such a process he would not have to sist a mandatory. The process could not go on before the Sheriff till that question was settled.

The respondents argued—The multiplepoinding was quite competent. The cases of Craig v. Thomson, January 13, 1847, 9 D. 409; Mathew v. Fawns, May 21, 1842, 4 D. 242; Metzenburgh v. Highland Railway Company, June 25, 1869, 7 Macph. 922—settled that in such circumstances the railway company was entitled to bring a multiplepoinding. They were willing that the process should go on before the Sheriff without a mandatory being sisted.

At advising—

Judgment:

Lord Justice-Clerk—The sort of question raised here in many circumstances becomes very perplexing and troublesome, especially when one of the parties is out of the jurisdiction of the Court, but this, I think, is not a very difficult instance. The transference of this furniture to the claimant Roberts, who, it appears, is the brother-in-law of Seton, the original owner of it, is alleged to have taken place in March, and Roberts endeavours to prove his title to the goods by means of a receipt granted to him by Seton for the price.

The furniture having been entrusted to the railway company for conveyance to Dublin, certain of Seton's creditors used arrestments in the hands of the company, and in order to try the question as to whom the furniture is to be given up this multiplepoinding has been brought.

The first question is, whether Roberts being resident in Ireland, is to be compelled to find a mandatory before he can insist in his claim? I think that would be a great hardship. With respect to the question of title, it may be that his title may require to be reduced, but that does not affect the competency of the action of multiplepoinding.

On the whole matter, I think we should find the multiplepoinding competent, and recal that portion of the interlocutor rendering it compulsory on Roberts to sist a mandatory at this stage.

Lord Young—I am of the same opinion, and on the same grounds. The only observation I wish to make is, that the general rule is that a foreigner is not subject to the jurisdiction of the Inferior Courts of Scotland. That is the rule. But there are exceptions, of which this case may fairly be regarded as one. An important and large class of exceptions—larger, I think, than its authors intended—was introduced by a recent statute, the Sheriff Court Act of 1876, which statute subjects foreigners to the jurisdiction of the Sheriff Court by reason of arrestments jurisdictionis fundandœ causa. A

Page: 61

foreigner might always bring an action in the Inferior Court against a defender subject to its jurisdiction, and now it is provided that a foreigner may be sued there if arrestments have been used to found jurisdiction. Laying that provision and the old law together, the result is that where two London merchants have a dispute arising out of a contract made there, one of them, by arresting a ship belonging to the other which is lying in the Clyde, may found jurisdiction in the Sheriff Court of Lanarkshire, and the Sheriff would be bound to entertain the action. That is one extensive exception to the rule that a foreigner can only be made answerable to Scotch jurisdiction in the Supreme Court.

I think, with your Lordship, that we have another exception here where the furniture was stopped in transitu by an arrestment. It might equally well have been done by interdict. It is a case in which it is alleged that there has been a fraudulent removal of a debtor's furniture for the purpose of cheating his creditors. It would be the same case if the goods were alleged to be stolen goods. Such goods might be stopped in the hands of the railway company to have the question of their ownership tried here though they were consigned to someone out of Scotland. There is thus no objection in the circumstances to the stoppage of the goods, and to the question of the right to them being raised in a multiple-poinding in the Sheriff Court. I agree with your Lordship also in holding that a foreigner who comes into a Sheriff Court, as Roberts does in this case, shall be in no other position than if the allegation of fraud has been the subject of reduction in a competent process in which he was defender. I also agree that the appellant ought to be allowed to urge his claim without sisting a mandatory.

Lord Craighill concurred.

The Court pronounced this interlocutor:—“Find the action of multiplepoinding competent: Sustain the appeal to the effect of recalling so much of the interlocutor of the 1st July last as requires the said David R. Roberts as a claimant to sist a mandatory, and so much of the interlocutor of the 7th October last as disallows the claim of the said claimant Roberts: Quoad ultra dismiss the appeal, and affirm the judgment appealed from, and remit to the Sheriff to proceed with the cause.”

Counsel:

Counsel for Roberts (Appellant)— Nevay. Agent— R. Broatch, L.A.

Counsel for Other Claimants— Mackintosh—Shaw. Agent— P. Morison, S.S.C.

1881


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