Galbraith v Grimshaw
| Jurisdiction | UK Non-devolved |
| Year | 1910 |
| Court | House of Lords |
| Date | 1910 |
Attachment of Debts - Scottish Judgment - Extension to England - Garnishee Order Nisi - Service on Garnishee - Subsequent Bankruptcy of Judgment Debtor in Scotland - Rights of Trustee in Bankruptcy -
A judgment for a sum of money which was obtained in an action in Scotland was extended to England under the
After the service of the garnishee order nisi the whole estate of the judgment debtor was sequestrated under the Scottish bankruptcy law and transferred wherever situated to the appellant as trustee for the creditors with power to recover all estates, debts, or money due to the judgment debtor. In an interpleader issue in England between the trustee and the judgment creditor as to their respective claims to the garnished debt:—
Held, that the judgment creditor had by the service of the garnishee order nisi obtained an attachment in England before the date of the sequestration, and that the Scottish Court had no power to interfere with his claim.
THE facts material to this appeal are stated in the head-note. The dates are as follows: October 23, 1908, judgment for 311l. and costs in an action in Scotland by Grimshaw and another against Merrens & Sons; October 26, judgment extended to England; October 27, garnishee order nisi in respect of 400l. owed to Merrens & Sons in England served upon the firm in England who owed the 400l.; November 12, sequestration in Scotland of the estate of Merrens & Sons; December 7, confirmation of the appellant as trustee of the sequestrated estate.
In the interpleader issue between the appellant and the respondents (Grimshaw and another) as to their respective claims to the garnished debt Ridley J. gave judgment for the appellant. This decision was reversed by the Court of Appeal (Farwell, Buckley, and Kennedy L.JJ.), who entered judgment for the respondents. Hence this appeal.
June 22, 23. Radcliffe, K.C., and Pringle, for the appellant. The garnishee order nisi did not transfer the property in the sum garnished from the judgment debtor, nor did it create a charge. There is in our law no term which exactly defines the right of a garnishor, which has been described as a lien or security; it is something like a distringas on stock. A receiver in a debenture-holders' action is entitled to precedence over the garnishor, although appointed after the garnishee order: Norton v. YatesF1; Geisse v. TaylorF2; Cairney v. Back.F3 A garnishee is but a stakeholder. In Rogers v. WhiteleyF4 Lord Watson said: “The effect of an order attaching all debts …. is to make the garnishee custodier for the Court, of the whole funds attached.” In In re Combined Weighing and Advertising Machine Co.F5 it was held that a garnishee order does not create between garnishor and garnishee any debt either at law or in equity. Holmes v. TuttonF6 was like the present case, and the title of the assignees in bankruptcy prevailed.
The Court will recognize and give effect to a foreign bankruptcy: Sill v. Worswick.F7 In Solomons v. RossF8 the title of the administrator of “desolate” estates in Holland was preferred to that of a person who had, like a garnishor, attached moneys of the bankrupt. A similar order with respect to Irish property was made in Neale v. CottinghamF9, referred to in the same note, and in...
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial
-
Al Sabah and another v Grupo Torras SA and another
...is that if the doubt is well-founded, it shows that the Bahamian trustee in bankruptcy, like the Scottish trustee in bankruptcy in Galbraith v Grimshaw [1910] AC 508, 510 may still "find himself … falling between two 8 The Bahamian court's letter of request came before the Grand Court of t......
- Lian Seng Properties Sdn Bhd and Another; Pembinaan KSY Sdn Bhd
- Re Doyle; ex parte Brien
-
The Companies Act (2023 Revision) and HQP Corporation Ltd (in Official Liquidation)
...in Re CEFC Shanghai International Group Ltd [2020] 1 HKLRD 676 distinguished the House of Lords decision in Galbraith v Grimshaw [1910] AC 508 and declined to follow it. Harris J at paragraph 19 was of the opinion that the analysis of the House of Lords in the early 20 th century was “ inco......
-
A Welcome Red Packet Hong Kong Court Recognizes Mainland Chinese Administration For First Time
...in Hong Kong. Harris J. found that the reasoning of an early 20th century English House of Lords authority Galbraith v. Grimshaw [1910] AC 508 - which had held that an English garnishee order nisi made before a Scottish bankruptcy order should be allowed to stand - was out of kilter with cr......