Douglas County National Bank v. Sands
Douglas County National Bank v. Sands
Opinion of the Court
The opinion of the court was delivered by
The judgment of the court below in each of these three cases will be affirmed, upon the authority of the case of the Watkins National Bank v. James G. Sands, just decided. See, also, the following authorities: Case v. Ingersoll, 7 Kas. 367; Cuendet v. Lahmer, 16 id. 527; Harris v. Cappell, 28 id.117; Kelsey v. Harrison, 29 id.143; Tootle v. Coldwell, 30 id. 125; Bailey v. Manufacturing Co., 32 id. 73; McPike v. Atwell, 34 id. 142; Hershfield v. Lowenthal, 35 id. 407; Hosea v. McClure, 42 id. 403; Allen v. Fuget, 42 id. 672; Cooper v. Clark, 44 id. 358; Furniture Co. v. Armstrong, 46 id. 270. See, also, 1 Wade, Att., § 96. The first ofLhe above cases now under consideration, the one of the Douglas County National Bank, cannot be distinguished from the Watkins National Bank case, above cited and followed. The second case, that of the National Bank of Lawrence, can scarcely be distinguished from the Watkins National Bank ease, there being no important differences between them. As to the other case, that of George A. Banks, there is a difference in the facts which it is claimed is of importance. Banks’s action was commenced on May 15, 1889, on promissory notes dated in 1882, and it is claimed that after that time, and in August, 1887, Sands gave to his wife $1,300 in cash for a consideration of about $800, and therefore that $500 of the amount was a pure gift, and that Sands was insolvent at the time, and therefore that the transaction was a fraud upon Sands’s creditors. Of course it is a fraud against creditors for an insolvent person to give away his property; but this claim, however, of the plaintiff in error, Banks, is not sufficiently shown by the evidence, and
We think the decision in this case and in the other Sands cases will do ample justice. Under it neither the mortgagees nor the attaching creditors will get advantages or preferences over the other creditors, but all of Sands’s property which is not exempt from judicial process will be used for the benefit of all his creditors in proportion to their respective' claims. This is equity, while to give preferences or advantages to either the mortgagees or the attaching creditors would not be equity.
The order and judgment of the district court in the three cases now under consideration will therefore be affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.