Sill v. Kentucky Coal & Timber Development Co.

Citations

• 11 Del. Ch. 93
• 97 A. 617
• 1916 Del. Ch. LEXIS 21

Syllabus

<p>The decision of a judicial tribunal having jurisdiction of the cause and of the parties is, in every other court everywhere, a complete and absolute defense in bar to another proceeding for the same cause of action.</p> <p>A judgment in another state for the same cause of action may be pleaded in bar, and a final decree in Chancery has the same force and effect respecting another bill filed by the same complainant against the same defendant for the same subject-matter.</p> <p>The bar of res judicata is more properly set up by plea than by answer, since, if set up by answer, it must be proved, while if by plea, it is taken as true, if a replication thereto is not filed within thirty days, under Rule 31, of the Court of Chancery.</p> <p>In establishing res judicata, the identity of the two causes must be alleged and proved, or admitted, and of this the record of the prior cause is the most satisfactory evidence, since it shows the final decree.</p> <p>Where a prior judgment is pleaded in the answer, it is of no avail at a hearing on a motion to dismiss the bill, and cannot be established until the trial.</p> <p>In a suit for a receiver based on insolvency, appealing to the discretionary power, it does not necessarily follow that an order refusing the appointment in one court on one state of facts will bar the appointment under other facts in another court, since the circumstances must be alike to make the prior adjudication controlling.</p> <p>Insolvency may mean inability to pay debts as they fall due in the ordinary course of business, or a deficiency of assets over liabilities, and neither definition is to be adopted to the exclusion of the other; but the discretion to appoint a receiver may be invoked when need of judicial action to protect interests of all concerned appears.</p> <p>Insolvency is sufficiently alleged in a bill which states that a corporation is unable to pay its debts as they mature, though other allegations should be included to invoke discret