Baum v. A. Pearce & Co.
Baum v. A. Pearce & Co.
Opinion of the Court
delivered the opinion of the court.
The construction which we have placed upon the deed of assignment forbids our declaring it void upon its face. The deed of assignment, after conveying the estate to the assignee, directs him “ to dispose of for cash or otherwise as is customary or according as the law directs, or shall be agreed upon by a majority of the said creditors all of said property, etc.” The wording is not precise, and the meaning is not free from obscurity, but we must give it such interpretation, if it may be done, as will not destroy the instrument. The maxim ut res magis valeat quam pereat is of force in this case of ambiguous interpretation, and must control. We take it the meaning is, that the assignee may sell for cash, or on time, as is customary in cases of assignments, or as the law directs in such cases, or that he may sell for cash, or on a credit,.as a majority of all the creditors agree. The phrase will bear this interpretation, and this will render the deed free from objection, and we therefore so construe its language.
The deed of assignment conveys, or purports to convey the entire estate of the assignors, including the accounts, notes, and other choses in action of the assignors’ mercantile firm, and refers to schedule B, attached to the deed, as containing an accurate list of such choses in action. In this schedule certain notes are mentioned as being held by A. J. Weems, Jno. T. Hardie & Co., and the Meridian Fertilizer Company, as security for debts due them respectively by the assignors.
On the trial of the plea in abatement interposed by appellees, in the court below, it was shown by some of the evidence, that these
Reversed and remanded.
Reference
- Full Case Name
- Joseph Baum v. A. Pearce & Co.
- Cited By
- 1 case
- Status
- Published
- Syllabus
- 1. Assignment foe Cbeditoes. Ambiguous provision. Ut res magis valeat quam pereat. A provision that the assignee is “ to dispose of for cash or otherwise, as is customary or according as the law directs, or shall he agreed upon by a majority of the said creditors,” all of the property, conveyed does not render an assignment void. Under the maxim ut res magis valeat quam pereat, an interpretation will be given to the ambiguous language that will uphold the instrument. 2. Same. Retention of property by grantor. Vitiates general assignment. Intent. One cannot assign his property for the benefit of creditors and yet hold and control it. If the grantor in a general assignment retains and controls certain of his choses in action which the deed recites are held by certain creditors as collateral security, the assignment will be void. In such case his motive in withholding the assets is immaterial.