Jeffries v. Bleckmann
Jeffries v. Bleckmann
Opinion of the Court
— On the second and eleventh days oi December, 1875, Bleckmann, Horn & Menkhaus, partners in the milling business, under the name of Bleckman, Horn & Co., were largely indebted and were insolvent. They then made two bills of sale, one of personal property and the other of ah interest in a steamboat to Grrothouse. Two of the partners also made to the same person a deed of the milling property. These •conveyances were all made to Grrothouse in trust for their creditors. The trustee gave bond as an assignee, inventoried the property, had the same appraised, allowed •demands and paid dividends thereon. He sold the real •estate without an order of court to Soltrop and Schegmann for $15,345. He resigned and the circuit court ■appointed two other persons assignees in his stead, who received the purchase money and made a deed of the real estate to these purchasers, who were in possession when this suit was brought. These deeds, and the bills of sale are alleged tobe fraudulent, as against the plaintiff, and this is a suit to set aside and cancel the same, for that reason.
The deed to the trustee was duly recorded on the third of January, 1876, and the sale of the real estate was made by the assignee on the twenty-fifth of that month. Subsequently, and in April, 1876, the plaintiff, Coleman, recovered a judgment before a justice of the peace for $12.60, a transcript of which was filed with the clerk of the circuit court upon which execution was issued and under it plaintiff purchased the real estate for $1,500. This is their title. Jeffries and Davis, the other plaintiffs, were also creditors of Bleckmann, Horn & Company, to the
The contention is that the assignment is fraudulent, as to some of the creditors because the deeds require a release from creditors in order to participate in the fruits of the assignment. The three instruments are substantially the same. The title to the real estate, it would seem, was in Bleckmann and Horn, and they, with their wives, executed this deed. It recites the names of a large number of creditors of Bleckmann, Horn & Company, the execution and delivery of the two bills of sale; that said creditors had executed to the debtors a release from any and all indebtedness, and in consideration •of such release and of the agreement of said creditors to surrender or destroy the evidences of such indebtedness, and of one dollar paid by the trustee, conveys to him the milling property, in trust for the creditors, as follows: “First, to run and operate such mill and other property in such manner as shall be for the best interests of all the creditors of the said firm of Bleck
It has been several times held in this state that an assignment, containing a stipulation for the release of the debtor as a condition of receiving any benefit, is void as-to the creditors not consenting thereto. Brown v. Knox, 6 Mo. 302; Drake v. Rogers, Id. 317; Bradley et al. v. Ames, 50 Mo. 387. And the same rule prevails in New York. Burrillon Assignments, section 192. But does this deed fall within the rule % Here a number of creditors, nearly all of them, did execute such a release-at and prior to the delivery of the deed of assignment. If' they saw fit to do this, to get what contingent dower interest the wives of the assignors might have in the real property, and to avoid the consumption of the property by way of costs in bankruptcy proceedings, as seems to have been the motive, that alone would not render the assignment fraudulent. The deed professes to be made for the benefit of all the creditors, whether named“or not. The-release by certain creditors is recited by way of consideration in part. But there is no stipulation that those only who have or shall sign the release shall share in the avails of the assignment. We do not understand the-deed to contemplate such a condition. The plaintiff, Coleman, was not recited as a creditor at all, but that was wholly immaterial. Our statute, then in force, declared that every voluntary assignment should be for the
Though Jeffries and Davis, the other plaintiffs, were mentioned, still they did not sign the release, nor were they bound so to do. These plaintiffs could have proved up their demands, as other creditors did, and have shared in the dividends. It seems to be contended that by so doing and receiving a dividend they would surrender whatever balance might be due on their demands. This is a misconception of the terms of the deed, as we have seen. It contemplates no such results as to those creditors who had not already, at the time of the assignment, executed the release.
The bill and the case made therein is without merit. The judgment of the circuit court should be affirmed. It is so ordered.
Reference
- Cited By
- 2 cases
- Status
- Published