Metropolitan Trust Co. v. Northern Trust Co.
Metropolitan Trust Co. v. Northern Trust Co.
Opinion of the Court
This is an appeal by the Metropolitan Trust Company, us assignee of Mason H. Crittenden, from an order of the district court of Hennepin county appointing the Northern Trust Company receiver in insolvency of the property of Mason H. Crittenden and Archie M. Crittenden, copartners as M. H. Crittenden & Son.
This proceeding was instituted upon the petition of Hill, Sons & •Co., as creditors of the firm of M. H. Crittenden & Son. The petitioners held th'e overdue note of that firm for the sum of $2,500, and charged in their petition for the appointment of a receiver in insolvency of the property of said debtors that Archie M. Crittenden was a general partner in the firm of M. H. Crittenden & Son prior to and at the time of the pretended voluntary assignment by Mason H. •Crittenden, as the sole member of said firm, to appellant, and that «such assignment of Mason H. Crittenden, on August 15, 1894, was
The principal issuable fact was the question of the partnership between Mason H. Crittenden and Archie M. Crittenden, and this involved the validity of the assignment by Mason H. Crittenden, as sole member of the firm. The debtors, Crittenden & Son, do not deny that they were partners at the time of the assignment, nor is it denied by any creditor. It is the assignee alone who asserts that the Crittendens were not partners.
We are of the opinion that the petition for the appointment of a receiver under the insolvency law states facts sufficient to constitute a cause or ground for such appointment. It is unnecessary for us to go into an examination of all the facts which lead to this conclusion, nor is it necessary for us to spend time in analyzing the evidence introduced to sustain the facts alleged in the petition. Whatever may have been the business relation between the Crittendens, as to their being partners as between themselves, the conclusion is so irresistible that they were partners as to third persons that we need not discuss the matter. Hence the attempted assignment of Mason H. Crittenden of all of his property would include his partnership interest in the firm of M. H. Crittenden & Son, and as to the other partner, Archie M. Crittenden, who was present at the time of the assignment, and did not join therein, such assignment is void as to the copartnership creditors. Even if the assignment was valid as to Mason H. Crittenden’s individual creditors, yet it would be giving a preference to them as against the partnership creditors. “It is not necessary that the act or action should have gone so far as actually to give and consummate the preference. It is enough if such will be its effect.” In re Kollmann, 34 Minn. 282, 25 N. W. 602.
Not only this, but he omitted to do that which he might lawfully have done to prevent some of his creditors from obtaining a preference over other of his creditors. On September 12,1894, one Walter M. Berry commenced an action in the district court of Hennepin county against Mason H. Crittenden & Son, as copartners, and filed his verified complaint in said court on the same day, and 20 days thereafter judgment was entered by default against them, as such copart
Our conclusion, therefore, is that the order appealed from, appointing the receiver, should be, and hereby is, affirmed.
Reference
- Full Case Name
- METROPOLITAN TRUST COMPANY, Assignee v. NORTHERN TRUST COMPANY, Receiver
- Status
- Published