Davis v. White
Davis v. White
Opinion of the Court
The opinion of the court was delivered by
The decision of this case is to be affected by the application of equitable principles that are in no respect obscure or doubtful.
This is a creditor’s bill, founded on a judgment entered in the circuit court of the county of Gloucester. The sheriff had returned the execution, which was against both lands and goods, entirely unexecuted, stating that he could find nothing on which to levy. Before the rendition of this judgment the defendant in it had transferred and conveyed to various persons, who are made defendants, all his personal and real estate, and after doing this, he had made an assignment to the appellant for the benefit of his creditors, pursuant to the statute.
The bill charges that all these various transfers of the property of which the defendant in the judgment had been seized or
To this bill the appellant has demurred.
By this step the appellant admits that it is true that the transfers of property made antecedently to his own appointment as assignee for creditors are fraudulent, as to such creditors, and that consequently it would be incumbent on him to have them set aside. This undoubtedly would be his plain duty, in the performance of which he could not be superseded except when peculiar circumstances existed. The usual course is, if a duty of this kind be neglected, for a creditor, interested in the matter, to give notice to the assignee that he requires its performance; and if such application be disregarded, the creditor may then supplant, measurably, the assignee, and proceed, as the actor, in the suit, to enforce the equities of himself and the other creditors. This is so clearly the course of practice that it would be superfluous to refer to authorities in its vindication.
But it is not always necessary that the creditor, in order to become dominus litis, should thus urge the assignee to the fulfillment of the duty in question. The creditor is absolved from such a step whenever it is plain that it would be either useless or disadvantageous, and such, by the appellant’s own admission, was the situation of things in the present instance, for he confesses, by force of his demurrer, that when the bill was filed he was implicated in the conspiracy to defraud the complainant and the other creditors. The point will not bear discussion, and the conclusion of the chancellor, that the standing of the complainant in court was altogether unimpeachable, was correct.
We also agree to the view indicated in the opinion in the court below, that the assignment to the appellant for the benefit of creditors should not, in all probability, be set aside, but that, on final hearing, it should be retained and enforced. It is true that the complainant in his bill asks that it may be set aside, but there is
Let the decree appealed from be affirmed.
For affirmance — The .Chief-Justice, Depue, Dixon, Garrison, Magie, Reed, Scudder, Van Syckel, Werts, Bogert, Brown, Clement, Smith, Whitaker — 14.
For reversal — None.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.