Ritchie v. White
Ritchie v. White
Opinion of the Court
delivered the opinion of the court. This action was commenced by the syn-dies to recover a certain quantity of merchandize, described in their petition, or its value, from the defendants, who received the goods in dispute from the insolvents, after an order had been made to stay proceedings against the latter, upon an application to surrender their property for the benefit of their creditors. It is stated in the petition, that these
The judgment of the district court being in favor of the plaintiffs, only for the amount claimed on account of rent, they appealed.
The evidence in the cause, and admissions of the parties, shew that the goods in question are not the property of the insolvents, but were held by them on consignment from the owners; for whom the defendants received and now hold them. This is literally true, in relation to all, except thirty-eight bags of pepper, which were bought by the bankrupts on account of the consignors, and paid for with the funds of the latter. These circumstances, it is believed, place this property on the same footing with the rest of the goods.
In case of failure and cessio bónorum, it is' clearly the duty of the insolvent to surrender all his own goods: but to give up as his own, those of another person, which might be in his possession, at the time of such failure, would be illegal and dishonest.
But the appellees, in pursuance of a late act of the legislature, in answering to the appeal, have assigned errors, on which they rely to have judgment reversed in toto.
In relation to these errors, we are of opinion, that the syndic, in representing the mass of the creditors, represents each individual composing said mass, so far as concerns the property of the cedant, which he is bound to administer for the benefit of all who may be interested therein, whatever may be the different interests.
The pursuit of the goods of a third person to pay rent on a contract of lease, as provid'ed for by law, is clearly a proceeding in rem, in which the lessee has no direct and immediate interest; therefore protection granted to him and his property, ought not to delay the lessor from seizing such goods whilst they remain in the leased premises; or if pursued in the hands of another person, wdthin the time limited by law. As to this extraordinary privilege of landlords, it is believed that they are not represented by syndics, appointed to represent the mass of creditors in the management of insolvent estatefi; but that they
It is therefore ordered, adjudged and decreed, that it be avoided, reversed and annulled, and that judgment be rendered for the defendants and appellees, with costs in both courts.
Reference
- Full Case Name
- RITCHIE & AL. SYNDICS v. WHITE & AL.
- Status
- Published