Kinney v. Paine
Kinney v. Paine
Opinion of the Court
delivered the opinion of the court.
The claim that there was undue delay in presenting the bill of exchange for payment is disposed of by the evidence, and is not maintainable.
• Section 1300 of the code has no place in a contest between creditors of the common debtor, \vho used or acquired the property which is the subject of contest. It makes property subject to creditors in the state of case prescribed, but has no application as between creditors.
The claim of a bona fide purchase is not predicable of the debt due from Carroll (which was a mere book account) to the bank, and the dealing between the attaching creditors who exhibited their bill in chancery and the non-attaching creditors and Gattman & Co., in which $6135.00 was paid, could have no effect whatever on the rights of Kinney & Co., who, in the view of a court of equity, remained the real owners of the claim on Carroll sent to Gattman & Co. for collection, and entitled to pursue it through all the devious ways disclosed.
Reversed and remanded.
Reference
- Full Case Name
- Kinney & Co. v. R. Paine, Receiver
- Cited By
- 8 cases
- Status
- Published
- Syllabus
- 1. Bill of Exchange. Presentation. Delay. Where a hank in Aberdeen, Miss., having made a collection for plaintiffs on the 7th, and remitted them at Nashville, Tenn., its New York check, which was received on the 19th, and presented in New York on the 22d, there is no undue delay in presentation. The drawer having failed on the 18th, it will not avail to show that the draft would have been paid if it had been presented on that day. 2. Code, 1880, § 1300. When applicable. Controversy between creditors. Where one transacts business with the addition of the word “ agent,” and “ co., ” or the like, without a sign showing who is his principal or partner, § 1300 of the code makes all property, etc., used or acquired in the business subject to his debts. It is not applicable in a controversy between creditors of the common debtor over property so used or acquired. 3. Bank. Collection. Trust. Bona fide purchaser. A bank, having for collection a draft, received therefor the debtor’s check on itself, and failed without paying over the money. Other creditors attached the bank, and there was a general creditors’ suit in which a receiver was appointed, and the bank conveyed its assets to him. Under a decree therein certain creditors purchased and paid for all the assets of the bank. Afterwards the drawers of the draft, not being parties to said suit, filed a bill to enforce a trust on the indebtedness of the drawee to the bank, a part of which was represented by the check. Held, that complainants, in equity, remained owners of this claim, and were entitled to pursue it, and that the creditors receiving the assets were not bona fide purchasers of the claim, a mere account.