Flagg v. Reed
Flagg v. Reed
Opinion of the Court
The principal question in this case is whether an assignee in insolvency can maintain an action of contract against the debtor for property included in the assignment which the debtor neglects or refuses to turn over as required by law.
There is nothing in any part of the statute indicating that the assignee may sue the debtor as for á debt; indeed, an important object of the law is to leave the debtor free from debt if he does his duty, and not to permit suits against him as a part of the proceedings, whereby judgments may be recovered that will stand as new debts which are not affected by the discharge. The debtor must file a schedule of creditors, and it is in reference to claims of creditors that the proceedings are inaugurated. Nor could it have been contemplated by the Legislature that the assignee should stand in the place of a new creditor, who, instead of pursuing the property and compelling the debtor under penalty of imprisonment to turn it over, may obtain a judgment
In § 51 of the statute, it is said that the assignee “ shall have the like remedy to recover all the estate, debts, and effects in his own name as the debtor might have had if no assignment had been made.” In this respect he is put in the place of the debtor as against third persons, but the language does not imply that he may sue the debtor in contract for assets which have not been turned over to him. Undoubtedly he may take the property into his possession wherever he can find it, and it is unnecessary in this case to hold that he might not, under certain circumstances, maintain an action of replevin, or some other appropriate suit founded on his title to specific articles, even against the debtor himself. But when, as between him and the debtor, the statute particularly describes the duties of both, and provides the remedy if the debtor fails to do what is necessary to put the assignee in possession of the estate assigned, we can find no warrant for allowing a wholly different remedy, inconsistent with the general purpose of the act.
We are of opinion that the action cannot be maintained.
Exceptions sustained.
Reference
- Full Case Name
- Wallace C. Flagg v. Daniel L. Reed & another
- Status
- Published