Court Opinion

ID: 9579547
Source: CourtListenerOpinion
Date Created: 2023-08-21 21:56:05.673553+00
Date Added: 2024-06-11T13:35:34.838553
License: Public Domain

Pannell, Judge,
dissenting. I disagree with the conclusion reached by the majority that a "third-party” claim under Section 14(a) of the Civil Practice Act is necessarily “ancillary” to the main suit so that the venue of the main suit attaches thereto. Section 82 of the Civil Practice Act (Code Ann. § 81A-182) specifically provides that nothing in that Act shall be construed to extend or limit the jurisdiction of the courts or the venue of the actions therein. And even if the intent of the Act had been to extend the venue of the courts in third-party complaints under Section 14 of that Act (Code Ann. § 81A-114), the statute could not change or alter in any way the venue provisions of the Constitution of this State contained in Article VI, Section XIV, Paragraphs *346I through VI (Code Ann. §§ 2-4901 through 2-4906). "No legislative or judicial tinkering can add to, take from, or vary” these provisions. Harvey v. Atlanta &c. Nat. Bank, 164 Ga. 625, 626 (139 SE 147); Terhune v. Pettit, 195 Ga. 793 (25 SE2d 660). These provisions are "mandatory, and cannot be altered by legislative enactment or any rule of construction.” Bradley v. Burns, 188 Ga. 434, 435 (4 SE2d 147). "The right conferred by the Constitution and the Code, that legal proceedings must be brought in the county of the residence of the defendant, is a substantial right.” Danziger v. Shoob, 203 Ga. 623, 626 (48 SE2d 92). It is obvious, therefore, that the decision in this case does not depend upon any provisions or terminology of the Civil Practice Act, or the decisions as to jurisdiction and venue in the Federal district and circuit courts of appeal, but can be determined very readily by applying the law of the State of Georgia as to the venue of civil actions as it was before the Civil Practice Act was passed and as it still is after the passage of that Act.
Neither are we concerned here with the question of the desirability of extending or limiting the venue provisions of the Constitution so as to make the third-party practice more effective as has been so often suggested by the writers of articles and textbooks. Changing the Constitution is not the function of this court, but is rather the function of the electorate by adopting applicable constitutional amendments presented to them in the manner provided in the Constitution.
Section 14 (a) of the Civil Practice Act (applicable to all courts of record) is as a whole nothing new to our procedure as "a defendant to any suit or claim in the superior court, whether such suit be for legal or equitable relief, may claim legal or equitable relief, or both, by framing proper pleadings for that purpose, and sustaining them by sufficient evidence” (Code § 37-905), although primarily these rights were asserted in the superior court which had jurisdiction of equity matters and all necessary parties could be made by amendment (Code § 37-1005) and equitable relief could be secured by amendment (Code § 37-903) and any person claiming equitable relief could obtain the use of extraordinary remedies in aid thereof (Code § 37-904). Section 14 (a) of the Civil Practice Act relating to third-party actions and Section 13 (g) re*347lating to cross claims against a co-party do, however, make a procedural change by asserting that such cross claims or cross complaints may be brought against a party "who is or may be liable to” the cross complainant or third-party plaintiff for all or part of the claim asserted in the main action against such cross complainant or third party plaintiff. It is now no longer necessary that the third-party plaintiff tortfeasor have a judgment rendered against him and pay a part thereof before proceeding against the other joint tortfeasor for contribution. Under the third-party procedure invoked in the present case, the other joint tortfeasor can be made a party prior to such recovery against the first and payment of the judgment by the first.
The emphasis by the majority is put upon the contention that the third party action here is "ancillary” to the main case and the constitutional provisions as to venue do not apply to it; relying almost entirely on lower court Federal cases and circuit courts of appeal Federal cases (the Supreme Court has not yet passed on the question; see Annotation 100 ALR2d 693, 705), which have no application to our Georgia constitutional provisions as to venue. On this theory that the "ancillary” nature of the proceeding eliminated the constitutional requirements as to venue the majority opinion must stand- or fall.
The third-party action here involved neither meets the definition of an ancillary proceeding set forth in the majority opinion nor is it the type of "ancillary” proceeding in which the courts of this State permit the venue to attach to the main suit without a separate application of the venue provisions of the Constitution of this State. The third-party complaint here does not grow out of the main action, although the proof in the main action may be sufficient proof to support the third-party action; nor is it subordinate to or in aid of the action in the main case.
Merely because a proceeding in a case may be "ancillary” to the main case under the Georgia decisions carries no magic repeal of the provisions of the Constitution of this State that one must be sued in the courts of the county of his residence (Code Ann. §§ 2-4906, 3-202) nor does it necessarily prevent the application of the constitutional provisions as to venue where the party defendant in the ancillary proceeding is a nonresident of the county in which *348the main case is pending, nor does the fact that the proceeding is "ancillary” prevent the application of the constitutional provision that equity cases must be brought in the county where a defendant resides against whom substantial equitable relief is prayed (Code Ann. § 2-4903). It has been so decided by the Supreme Court of this State, as will be hereinafter shown. I will be the first to admit, however, that a certain type of "ancillary” proceeding was at one time permissible without the application of the constitutional requirements as to venue separately thereto. In this area lies the difference. The majority seeks to expand this area by permitting "ancillary” proceedings without a separate requirement as to venue, which has heretofore not been permitted. It may illuminate the question somewhat by discussing those cases and the history of constitutional provisions relating to venue.
Prior to the amended Constitution adopted in 1861, there were no constitutional provisions as to venue specifically referring to equity causes (Railroad Commission v. Palmer Hardware Co., 124 Ga. 633, 639 (53 SE 193)), although the Constitutions of 1777 and 1789 had provisions relating to "matters in dispute” and "causes” being tried in the county where the defendant resides, except real estate, which shall be tried in the county where the real estate lies, and the Constitution of 1798 first made provision in cases of joint obligors and joint promisors. Code Ann. § 3-202, relating to equitable proceedings, was an adoption of case law prior to the constitutional provisions relating to venue in equity cases. See Carswell v. Macon Mfg. Co., 38 Ga. 403, 406. By analogy to the law, equity cases were brought in the county where a defendant resided against whom substantial equitable relief was sought, and this requirement was placed in the Constitutions of 1861, 1865 and 1868, but it was ruled, however, these venue provisions of the Constitution in equity cases did not apply to bills "ancillary” to suits already pending, "as for discovery, injunction, etc. In such causes, so far as the bill is merely defensive, and seeks no relief, outside of the suit pending, the county where the suit is pending has jurisdiction.” (Emphasis supplied.) Carswell v. Macon Mfg. Co., 38 Ga. 403, 407, supra. It appears, therefore, that the "ancillary” proceedings to which the ordinary venue provisions of the Constitution do not apply, are considerably more restricted, and *349quite different from the "ancillary” proceedings defined in the majority opinion. Decisions of the Supreme Court of this State conclusively show this.
I quote from the case of Bishop v. Brown, 138 Ga. 771 (2-4) (76 SE 89): " 'Equity cases shall be tried in the county where the defendant resides against whom substantial relief is prayed.’ Civil Code, § 6540 [Code Ann. § 2-4903], Ancillary proceedings may be filed in cases growing out, and in aid of the original proceedings, in the same court and between the same parties, for the purpose of rendering complete justice among all the parties at interest. In such a case, however, an ancillary proceeding in the nature of an equitable petition to cancel a deed (and to enjoin the transfer of the property) alleged to have been made by a judgment debtor to his wife in order to hinder, delay, and defraud his creditors, will not lie against the wife in a county other than that of her and her husband’s residence, where it appears that she was not a party to the original suit in the county where the judgment was obtained, and has not waived jurisdiction in the court of the county other than that of her residence by any act on her part.” The case of Barnes v. Banks, 154 Ga. 706 (115 SE 71), cited in the majority opinion, and summarily distinguished on the ground it did not involve an "ancillary” proceeding is a case in which it appeared A and B purchased machinery from C and D and gave several notes for the balance of the purchase money which were indorsed by C and D to a bank. The bank sued the makers A and B and the indorsers C and D, the indorsers C and D being nonresidents of the county of the suit. The makers A and B answered and also filed a "cross petition” (third-party complaint), alleging there was a breach of warranty on the part of the indorsers in that the machinery purchased was not as represented and was not reasonably suited for the purpose intended, etc., and a judgment was sought against the indorsers by the makers for the amount of the purchase money already paid and for damages. The ruling of the court was as follows: "This 'cross petition’ was dismissed upon motion of the indorsers, on the ground, among others, that the Superior Court of Jones County had no jurisdiction to entertain such an action as set out in the 'cross petition’ against them, as neither of them resided in that county. Held, that the court did *350not err in dismissing the 'cross petition.’ Under the Constitution an action must be brought in the county of the defendant’s residence, and neither of the indorsers, who were the defendants in the 'cross petition,’ resided in Jones county. While they could be sued there with the makers of the notes, because they were joint obligors, the makers could not maintain in that county the 'cross petition’ against them.” In this case, the third-party defendant was already the defendant in the main action.
Another case cited by the majority also summarily distinguished on the grounds that the third-party action involved was "independent rather than one ancillary to the main action,” is Huckabee Auto Co. v. Norris, 190 Ga. 515 (9 SE2d 840). In that case, it appeared that Norris bought from Huckabee Auto Company an automobile and gave in part payment a note. The note was transferred to General Motors Acceptance Corporation which, upon Norris’ refusal to pay the note, brought an action against him in the Superior Court of Twiggs County. In his answer, Norris set up various representations made by Huckabee Auto Company, alleging it to be a resident of Bibb County, Georgia, and relating to the automobile and that immediately after he took the automobile home he saw it was not as represented and he took it back to Huckabee Auto Company and offered to rescind the trade, but that Huckabee Auto Company refused and then transferred the note to General Motors Acceptance Corporation. He pleaded that he might not be able to make a good defense against the plaintiff "and therefore that Huckabee Auto Company was liable to him for whatever judgment the General Motors Acceptance Corporation might obtain against him.” The court, following the reasoning in Barnes v. Banks, 154 Ga. 706, supra, said (p. 516): "under the procedure which obtains in this State, it is permissible for a defendant sued at law to file such pleadings as will convert the case to one in equity; and new parties may be made in equity cases [and in law cases under the Civil Practice Act]. But neither of these two propositions, nor both of them combined, will authorize an action in a forum forbidden by our Constitution.” (Emphasis supplied.) The trial judge was reversed for his failure to dismiss the crosp complaint or third-party action against Huckabee Auto Company, which motion was made on the ground of lack *351of venue of the Huckabee Auto Company, which was a resident of Bibb County, Georgia.
This case to me appears to be on all fours with the present case in which the third-party plaintiffs seek to have alleged joint tortfeasors (joint with the third-party plaintiffs) made third-party defendants who allegedly "may be liable over to these third-party plaintiffs” and "prays judgment against the third-party defendant for the legally determinable pro rata amount of any recovery that the plaintiff may obtain against these third-party plaintiffs . . .” If there be a difference, where is it?
The majority seek to distinguish Barnes v. Banks, supra, and Huckabee Auto Co. v. Norris, supra, on the grounds (a) already stated (that they did not involve an ancillary, or third-party practice, proceeding) and (b) that when those cases were decided, we did not have the "procedural device” permitting the making of such third parties, and (c) that in Barnes and in Huckabee other items of recovery were sought than the action for recovery of contribution. These distinctions are obviously without merit.
I will demonstrate this in the order stated, (a) That the actions over involved warranties is even conceded in a part of the majority opinion to be matters comprehended within the third-party practice. With this we agree. And if the majority contends the third-party practice involves "ancillary” proceedings, then ancillary proceedings were involved in Banks and in Huckabee according to the majority’s own standards of definition.
(b) We have previously shown that "procedural devices” were in effect when Banks and Huckabee were decided and, further, Huckabee contains within its opinion a refutation of the majority’s distinction (which refutation has been previously emphasized in this opinion). In that opinion attention is called to the fact that two so-called "procedural devices” were in effect permitting the making of parties. It was then ruled (p. 516): "But neither of these two propositions [procedural devices], nor both of them combined will authorize an action in a forum forbidden by our Constitution.” To the same effect is the case of Fourth Nat. Bank v. Mooty, 143 Ga. 137 (84 SE 546), cited by the majority. We quote from the opinion in that case as follows: ’’The Uniform Procedure Act of 1887, permitting the joinder of legal and equitable causes, and obtaining *352appropriate relief in the same action, did not change any essential feature of the law respecting the venue of actions. Before its passage a creditor without a lien, under ordinary conditions, could not first maintain an action to set aside a fraudulent conveyance of his debtor; but since its enactment a creditor, in one action, may attack a sale made by his debtor as fraudulent, and obtain judgment against his debtor for the debt. Booth v. Mohr, 122 Ga. 333 (50 SE 173). This does not mean that a creditor without a lien may go out of the county of his debtor and institute an action against the debtor’s grantee, in the county of the latter’s residence, for the purpose of obtaining judgment against his nonresident debtor and subjecting to its lien property which it is alleged the debtor fraudulently conveyed to his grantee. A creditor may sue his debtor in the county of the latter’s residence, and in the same action (if it be in a court which has equitable jurisdiction) may have equitable relief in canceling his debtor’s fraudulent deed, although the grantee may reside in a different county. The jurisdiction of the court having equitable jurisdiction draws to its power of rendering judgment against the debtor the power of administering proper ancillary equitable relief. It is not the power to render the ancillary relief which fixes the jurisdiction of the court over the person, but, rather, the jurisdiction over the person to render judgment includes the jurisdiction to grant ancillary relief appropriate to the enforcement of the judgment to be obtained in the same action. The plaintiff’s right to cancellation is dependent upon his right to a judgment against his debtor who lives in Fulton County. The Uniform Procedure Act of 1887 did not provide that a creditor could go out of the county of the debtor’s residence and obtain a judgment, and ancillary relief against him, but that simultaneously in his action for a judgment, in the county of the debtor’s residence, he could join therein a supplementary cause of action for equitable aid in the enforcement of his judgment.” (Emphasis supplied.)
(c) While, in both Barnes and Huckabee, other items of recovery were sought other than the action for recovery of contribution, and this constitutes a difference in those cases and the one before the court, it constitutes no distinction. The inference in making this distinction is that these cases were dismissed because there *353was no venue as to the items sought to be recovered outside of the recovery for contribution. It is obvious by reading the cases that they were dismissed because there was no venue as to any of the items for which recovery was sought, and if there had been venue for the recovery of contribution, the whole case would not have been dismissed. This is demonstrated in the case of Etowah Milling Co. v. Crenshaw, 116 Ga. 406 (42 SE 709) where there was a suit for equitable relief and damages against a corporation. The residence fixed by charter was in a county different from that of the suit. The court dismissed the equity portion of the case on grounds of lack of venue, but entertained that portion embracing a claim for damages, as the corporation by statute was a "resident” of the county where the wrong or injury for which damages were sought occurred.
Let us examine the authorities on which the majority rely in saying that the present third-party complaint is not an action or case covered by the constitutional provisions relating to venue. It is clear that we have a plaintiff and a defendant in the ordinary and usual sense of the term and that the action brought by the defendant party against another not a party to the case is not one in aid of the main case or action or one growing out of it even though "ancillary” thereto. That the third-party plaintiff has no right to recover against the third-party defendant unless and until a recovery is had in the main action and payment made thereon does not make the third-party action here one "growing out of” the main case. On the contrary, these requirements are but a condition precedent to a right of action for contribution. While we have a procedural device now for making a joint tortfeasor a party to the main case, this has not changed the nature of the action ultimately sought to be asserted against the joint tortfeasor for contribution. The majority rely on cases holding that a garnishment proceeding is not a case or suit within the meaning of the constitutional provisions and seem to get comfort from the statement in a case that the garnishment is "ancillary to the main case.” A garnishment proceeding is ancillary to the main action in the sense that it is an attempt to enforce the judgment obtained in the main action in behalf of the plaintiff in the main action. However, as we have shown, merely being "ancillary” is not a *354controlling factor. What really distinguishes the garnishment case from the case now before the court is that it is not an action or case which has a plaintiff and a defendant (as quoted by the majority from Huron v. Huron, 1 T. U. P. Chrlt. 160), but also for the reasons stated in that case, which were left out of the quotation by the majority. That portion is as follows: "A bill may be filed in equity to procure testimony in aid of the bill original (or for other collateral purposes) against a person not a resident of the county. This is mentioned for the purpose of illustration, and the present case may be assimilated to it. The garnishee is not a party, in its technical acceptance, he can not be recognized as a defendant. He is called a 'third person’ by the attachment act; and by the process served upon him, he is merely required to surrender to the attacking plaintiff (creditor) property which may enable the plaintiff to derive a benefit from his action. None of the rights of the garnishees are so implicated as to require a trial of his vicinage.” The present third-party complaint carries none of the earmarks of the garnishment proceeding against a garnishee which prevent that proceeding from falling within the constitutional provisions relating to venue.
The other cases, or principles, upon which the majority rely is that of vouchment, whereby the vouchee, who may be a nonresident of the county where the main action is pending may be bound by the judgment against the voucher. This remedy is used quite often where the voucher defendant in the main action may have a right of action over against a third party. The judgment in the main suit is binding on the vouchee, but only to the extent that the plaintiff was entitled to a judgment against the defendant voucher as to the matter sued upon. The voucher, even under that procedure, must file a separate action against the vouchee in the county of the vouchee’s residence to establish the vouchee’s liability to him. The underlying reason requiring a separate procedural action is that the vouchee is not a party to the case and can not be made such over the objections of the plaintiff. See Pardue v. Masters, 211 Ga. 772 (88 SE2d 385).
Yet the majority opinion, in the face of this plain law and the Constitution, and while conceding that this proceeding "requires the bringing of a second action to determine the liability of the *355vouchee to the voucher,” contends that the procedural devices of the third-party practice in Section 14 (a) of the Civil Practice Act extends the venue provisions of the Constitution in that very type of action with the following statement: "If the vouchee traditionally could be concluded as to the plaintiff’s [in the main case] right to recover and the amount thereof, and no independent venue or jurisdictional grounds were required to bind him as to these two fundamental elements,” there is no reason why "he cannot also be bound as to the third element — his liability over to the original defendant — in the same action.”
Here again we are met with the fallacious argument that a "procedural device” can change the venue provisions of the Constitution. Let us give an example we have referred to previously to show the error of this argument.
It may be noted also that prior to the Civil Practice Act an action for contribution (see Code § 37-303) could not be brought unless and until a judgment in the main action has been had and paid in whole or in part by the person claiming contribution. Huey v. Stewart, 69 Ga. 768 (3); Autry v. Southern R. Co., 167 Ga. 136 (3) (144 SE 741); Snyder v. Elkan, 187 Ga. 164 (2) (199 SE 891). Therefore, it appears that a separate suit had to be brought therefor by the defendant in the main case in the county of the residence of the other joint tortfeasor after these requirements were met, and that the action for contribution was not then something "ancillary” to the main action so as to permit bringing the "ancillary” action in the county where the main action was brought although the defendant in the ancillary action was not a resident of that county. "Ancillary” actions of a character which do not require a separate application of the venue requirements of the Constitution can be brought either as a part of the main action or separately therefrom, such as injunctions, discovery, etc., so that the procedural device of permitting the joinder of the party against whom the "ancillary” action is brought is not a determinative factor as to whether the "ancillary” proceeding is one requiring a separate venue or is one controlled by the venue of the main action.
Accordingly, it is my opinion that the action for contribution herein sought, even assuming it can be brought as a third-party *356action insofar as jurisdiction to entertain the action is concerned, it must, under the venue provisions of the Constitution, be brought against the third-party defendants in the county of their residence. The trial judge should be reversed.
I am authorized to state that Judge Evans concurs in this dissent.