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Scottish Court of Session Decisions |
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You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> D. & J. Macdonald v. Reid and others [1881] ScotLR 19_119 (18 November 1881) URL: http://www.bailii.org/scot/cases/ScotCS/1881/19SLR0119.html Cite as: [1881] SLR 19_119, [1881] ScotLR 19_119 |
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Page: 119↓
[Sheriff of Renfrewshire.
The Police and Improvement (Scotland) Act provided—“That all actions, suits, or proceedings in respect of any matter or thing relating to the execution of this Act to be brought by or against the commissioners shall be in the name of their clerk or treasurer or collector for the time being, as the party, pursuer or defender, representing the commissioners.” The duties of the clerk to the commissioners of police in a burgh were confined to “keeping the books and records of the commissioners and their committees;” he had no duty in relation to the funds belonging to the commissioners, which never passed into his hands, but were. received by the collector, and thereafter managed by the treasurer. Held that an arrestment in the hands of the clerk was not effectual to attach any funds belonging to the commissioners.
This was an action of furthcoming for £37, 17s. 6d. against “James Reid, writer, Johnstone, clerk to the Commissioners of Police of the burgh of Johnstone, and as such on behalf of and representing the said commissioners, arrestee, and William Telford, merchant, Johnstone, common debtor.”
In defence the common debtor pleaded—“The arrestee neither held nor holds, nor has the control of, any funds belonging to the common debtor, either as an individual or in his capacity of clerk to the commissioners. An arrestment in the hands of a clerk to commissioners of police, acting under 13 and 14 Vict. cap. 33, does not, unless repeated or intimated by the arrester to the treasurer appointed and acting under that Act, attach any funds due to creditors of such commissioners.” The common debtor further stated that “The treasurer of the burgh on 30th April and 7th May 1881 paid to the common debtor two sums respectively, £8 and £15, to account of the above mentioned £34—said payments being bona fide made in ignorance of the arrestments in Mr Reid's hands.”
The arrestee expressed his readiness to pay under decree of Court.
The provisions of the Police and Improvement (Scotland) Act (13 and 14 Vict. cap. 33), upon which the question depended, are quoted in the opinion of the Lord President, infra.
The Sheriff-Substitute ( Cowan) pronounced the following interlocutor:—“Finds that the arrestment founded on in this case was used in the hands of ‘James Reid, writer, Johnstone, clerk to the Commissioners of Police of the burgh of Johnstone,’ and that the clerk to the commissioners of the said burgh, it was admitted in argument, does not bold any funds belonging to the commissioners, these being in the hands
Page: 120↓
and custody of the treasurer to the commissioners of the burgh: Finds in law that the said arrestment is not effectual to carry any funds belonging to the commissioners: Therefore assoilzies the arrestee James Reid from the conclusions of the action,” &c. On appeal the Sheriff ( Moncreiff) adhered.
The pursuer appealed, and argued—The arrestment was valid, because it was used in the hands of an officer in whose name the corporation might sue or be sued. As to the difficulty that the treasurer might pay away in ignorance of the arrestment, the corporation was one, and it was the duty of each officer to know what the other was doing.
Replied for respondent—The provision with reference to suing and being sued must be understood with reference to the respective duties of the several officers, and as the clerk had nothing to do with the funds, an arrestment in his hands was incompetent, and was practically inconvenient, as the treasurer might, and in this case actually had paid away bona fide the funds arrested.
Authorities— Keir v. Creditors of Menzies, January 10, 1739, M. 738; Mitchell v. Hepburn, January 15, 1830, 8 S. 319; Ormiston v. Redpath, Brown, & Company, February 24, 1866, 4 Macph. 488; Ersk. Inst. iii. 6, 5; Bell's Prin. 2276.
The Lords made avizandum with the case.
At advising the following opinions were pronounced:—
Now, this depends entirely on the provisions of the Statute 13 and 14 Vict. cap. 33, and it is necessary to attend somewhat carefully to these provisions, because the arrangement for the appointment of the officials of a body like these Police Commissioners is a little peculiar. The 51st section directs the commissioners to appoint a clerk, who is to keep the books and records of the commissioners and their committees, and to give certified copies or extracts of these books and records, and so far his duty is entirely confined to keeping books—in short, to act exclusively as a clerk. Then the 53d section directs the commissioners to appoint a treasurer and collector, who are to grant bond with sufficient sureties for their intromissions and the faithful execution of their office. The 54th section gives the commissioners power to allow reasonable salaries to be paid to these three officials. The 55th section provides that the “collector shall be obliged to lodge all money received by him in a chartered or other bank, or in one of the branches of such bank in the burgh to be fixed by the commissioners, upon an account to be opened in the name of the commissioners, and to be operated upon by the treasurer for the time.” Then the 57th section provides that the same person may be appointed both treasurer and collector but not clerk. Lastly, the 58th section provides that “all actions, suits, or proceedings in respect of any matter or thing relating to the execution of this Act to be brought by or against the commissioners shall be in the name of their clerk or treasurer or collector for the time being, as the party, pursuer or defender, representing the commissioners.”
Now, under most statutes of this kind there is one official, and one only, in whose name bodies of commissioners are to sue or be sued, but under this Act either the clerk or the treasurer or the collector may represent the commissioners, and looking to the duties devolving on each of these officials, it seems to me that it depends on the nature of the proceeding which is the proper official to represent the commissioners. Now, the object of the present proceedings is to attach funds in the hands of the commissioners which they are due or owing to the common debtor. But the way in which funds belonging to the commissioners are to be treated is quite clear. They are to be lodged in a bank or branch bank in Johnstone, upon an account in the name of the commissioners. Arising as they do from assessments, they are to be lodged in that bank by the collector, and once there they are to be operated on only by the treasurer. Now, what has been done in the present case is to arrest funds belonging to the commissioners in the hands of the clerk. But the clerk has nothing to do with these funds, and never can have any money in his hands belonging to the commissioners. And the effect of arresting funds in the hands of the clerk would be that the treasurer might pay away the sums arrested without the slightest knowledge of the arrestment. That will not do. I think, therefore, for the reasons given by the Sheriff-Substitute, that the pursuer has mistaken his remedy. He ought to have arrested in the hands of the treasurer as representing the commissioners—not certainly as treasurer to the commissioners (that would be an entire mistake), but as representing the commissioners. He is their proper representative in a matter of this kind. It is necessary to explain this distinctly, because in certain circumstances a different rule might prevail. If the only person in whose name the corporation could sue or be sued had been the clerk or the secretary, there would be no choice. The only way to arrest would then be in the hands of the only person entitled to represent the body, and to arrest in the hands of a person not entitled to represent the body would be an entire mistake. He is their mere hand, and the case would fall under that series of decisions which show that
Page: 121↓
The Lords refused the appeal.
Counsel for Appellant— Rhind. Agent— R. P. Stevenson, S.S.C.
Counsel for Respondent— Watt. Agent— A. Clerk.