Blow v. Gage

Citations

• 44 Ill. 208

Syllabus

<p>1. Assignment for the benefit of creditors&emdash;power to malee, and give preferences. A debtor in failing circumstances may make an assignment for the benefit of his creditors, and in so doing, he may make a preference in favor of a portion of Ms creditors.</p> <p>2. Same&emdash;must be in good faith. But to be valid, it must be done in good faith; for, if intended to delay creditors, or otherwise for fraudulent purposes, or if the preference be a secret trust, it is void.</p> <p>3. Same&emdash;will be rigidly scrutinized. Transactions of this character are required to he fairly and honestly made, and, to that end, they will be rigidly scrutinized.</p> <p>4. Chancery practice&emdash;proof requisite, to overcome a sworn answer. Where an answer to a bill in chancery is required to be made under oath, and is responsivo to the allegations of the hill, it must he received as true, unless disproved by the evidence of two witnesses, or that of one and corroborating evidence amounting to the evidence of another, such answer being evidence of a higher grade than that of a single witness.</p> <p>5. Assignment for the benefit of creditors&emdash;of particular words in the deed. It is no objection to a deed of assignment, that it contains this language: “ deducting and retaining all such costs, charges, damages, expenses and disbursements, as shall he sustained, incurred, or reasonably due, for or in relation to the execution of the trusts.” The use of the word “ damages ” therein does not vest in the trustee power to squander the assets, by the charge of fictitious damages.</p> <p>6. Same—reasonable costs, and charges attending the execution of the trust allowed—whether provided for in the deed or not. The law allows all reasonable charges, costs, expenses and disbursements, to be paid out of the fund, but they are always subject to be reviewed by a court of equity; and such disbursements will be allowed, whether provided for in the deed or not.</p> <p>7. Same—damages awa