Adams v. Haskell & Woods

Citations

• 6 Cal. 113

Syllabus

<p>Parties appointed as assignees of an insolvent firm, in a proceeding in insolvency which was illegal and void, are merely the custodians, receivers, or bailees of the fund in their hands by virtue of the order of the Court, and only hold it subject to the direction of the Court.</p> <p>Consequently, when in another proceeding for the protection of the creditors’ property, instituted by one of the insolvent firm against his partners, in the same Court, an order is made that they pay over the fund to a receiver appointed by the Court, it is no answer or defence, that the fund has been attached in their hands in actions brought by the creditors, or that it had been attached in the hands of a former receiver, appointed by the same Court, from whom they, under a like order, had received it.</p> <p>Nor is the disposition of the fund affected by any action of the immediate parties to the action, which was instituted to secure a distribution of the assets among the creditors— an object which a Court of Chancery will carry out, without regard to any attempt by any of the partners to evade or defeat it.</p>