Pollock v. Simmons Bros.
Pollock v. Simmons Bros.
Opinion of the Court
delivered the opinion of the court.
A. F. and B. L. Simmons, engaged as partners in the mercantile business at Booneville, and owning a stock of goods, wares, and merchandise of about $7,000 in value, and being largely indebted beyond their ability to pay, and being pressed by S. M. Barnett for a debt due him, as well as on one for which he was their security at the Tupelo National Bank, on October 15, 1895, sold their said stock of goods to S. M. Barnett at seventy-one cents on the dollar-of the cost price. In settlement of the purchase price of the said stock of mer
On the 28th day of October, 1895, Pollock & Bernheimer, creditors of said Simmons Bros, in the sum of $611.06, filed their bill in the chancery court against said A. F. and B. L. Simmons and said S. M. Barnett, to set aside a sale of the goods of said Pollock & Bernheimer to said Simmons Bros., on account of the sale thereof being made through false representations of the solvency of said Simmons Bros, to said Pollock & Bernheimer, and, also, to set aside the sale of the stock of
The facts, in part, are as hereinbefore recited, and it is maintained that the sale of the stock of goods by Simmons Bros, to Barnett is void as to their creditors, because the execution of the note of $1,668.15 by Barnett to Allen, and the holding of the $535 note by Mrs. Dalton, do not, at least ter the sum of said notes, constitute Barnett a bona fide purchaser for the value of said stock of goods. In other words, it is said that Barnett, in consequence of our anti-commercial statute, could defeat a recovery upon said notes if sued by Allen and Dalton thereon.
Allen and Dalton were creditors of Simmons Bros., and if Barnett had paid them in money there could be no cause of complaint at the transaction. That he gave his notes for the amounts does not affect the result. Allen and Dalton took the notes of Barnett, before they became due, in discharge of debts due them from Simmons Bros., and thereby received them discharged of all equities between Barnett and Simmons Bros, of which they had no knowledge. On the facts as they appear in the record, it cannot be that Barnett, if sued by Allen and Dalton, conld plead any failure of consideration or other defense to the notes held by them. These notes were given them in extinguishment of the notes of Simmons Bros., and they are bona fide holders for value. Emanuel v. White, 34 Miss., 56; 1 Dan. on Neg. Inst., sec. 832; Ethridge v. Gallagher, 55 Miss., 458. Mrs. Dalton and Allen severally had an
There were other matters in the case which it was contended vitiated the assignment to Barnett, but the evidence in regard to them was so uncertain that it made no sufficient impression upon the mind of the chancellor, and we cannot say that he erred in his conclusion.
The decree of the court below is affirmed.
Reference
- Full Case Name
- Pollock & Bernheimer v. Simmons Brothers
- Status
- Published
- Syllabus
- 1. Fraudulent Sale. Purchase in part' on credit. Promissory note. Assignment. Anti-commercial statute. Code 1882, \\ 3503. Notwithstanding onr anti-commercial statute (code 1892, § 3503), a buyer of property from one who fraudulently purchased it may be a bona fide purchaser, although he may not have fully paid the purchase price which he promised therefor. He is such a purchaser where, before the notice of his vendor’s fraud, he gave his promissory note for the ci'edit part of the purchase price, and the note was transferred by the payee to the latter’s bona fide creditor, and the maker of ithe note took it up and substituted for i t his new note payable to such creditor, he and the creditor acting in good faith. 2. Same. Bona fide subsequent purchaser. Actual payment. In such case the defrauded party cannot hold the maker of the notes liable as a trustee mala fide on the ground that he is not a bona fide purchaser to the extent to which he has not paid for the property.