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Keywords

jurisdictionpleacorporationattachment
plaintiffjurisdictionpleaoverruledattachmentgarnishmentseizure

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National Fire Ins. Co. of Hartford v. Chambers, 53 N.J. Eq. 468, 8 Dickinson 468, 32 A. 663

Facts

The National Fire Insurance Company, a Connecticut corporation, was indebted to Frank Chambers, a New Jersey resident, for a fire loss. Chambers had an outstanding debt to Harding, Whitman & Co., who obtained a writ of foreign attachment against him in Pennsylvania. Chambers later assigned his claim against the insurance company to J.J. Crandall, who sued the company in New Jersey. The insurance company filed a bill of interpleader to resolve the conflicting claims between the creditors.

The complainant duly appeared to this suit, and then, according to the practice in the Pennsylvania courts, the plaintiffs, Datz & Bro., served interrogatories upon it, wherein, among other questions, they asked whether at the time the writ was served upon complainant's agent there was anything due from it to Frank Chambers on a policy of insurance.

Issue

Did Harding, Whitman & Co. obtain a lien on the debt due from the complainant to Chambers through their attachment proceedings in Pennsylvania, thereby affecting an involuntary assignment of the debt?

The only question here involved is this: Did Harding, Whitman & Co., by their proceeding in attachment in the Philadelphia common pleas, obtain a lien upon the debt due from the complainant to Chambers, now represented by the fund in court in this cause?

Rule

The rule states that jurisdiction for foreign attachment requires the res to be within the territorial jurisdiction of the court, but this applies only to tangible property, not to choses in action. Jurisdiction to attach a chose in action depends on the ability to serve process on the debtor within the court's jurisdiction.

The rule that, in order to give a court jurisdiction in cases of foreign attachment, the res must be within the territorial jurisdiction of the court, applies only to tangible chattels capable of actual seizure, and not to choses in action.

Analysis

The court analyzed whether the Pennsylvania courts had jurisdiction over the debt owed by the insurance company to Chambers. It concluded that since the insurance company had consented to jurisdiction by appointing an agent in Pennsylvania, the attachment proceedings were valid. The court determined that Harding, Whitman & Co. had acquired a lien on the debt through their attachment, as the debt was attachable in Pennsylvania where the insurance company was doing business.

The court of common pleas No. 2, after argument, in a considered judgment reviewing the authorities, overruled this defense, holding that this court had no power to enjoin Datz & Bro., and that the complainant was subject to garnishment in Pennsylvania through its duly–authorized agent.

Conclusion

The court concluded that Harding, Whitman & Co. had a superior claim to the debt owed by the insurance company to Chambers due to their timely attachment proceedings in Pennsylvania.

It follows that it is thoroughly established that, according to the system of jurisprudence administered by the courts of Pennsylvania, Harding, Whitman & Co. did acquire a lien upon this debt due from complainant to Chambers by their proceedings in the Pennsylvania courts.

Who won?

Harding, Whitman & Co. prevailed in the case because their attachment proceedings established a lien on the debt owed to Chambers, which was recognized by the court as valid under Pennsylvania law.

I am therefore forced to the conclusion that if Harding, Whitman & Co. had not submitted themselves to the jurisdiction of this court, but had proceeded in their attachment suit with the ordinary proceedings against complainant as garnishee, they would have recovered judgment against complainant which would have bound it in all jurisdictions.

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