Brown v. Deford

Citations

• 83 Md. 297
• 34 A. 788

Syllabus

<p>Advance of Money Under Agreement that Property Purchased Therewith Shall Belong to the Lender—Construction of Contract—Assignment for the Benefit of Creditors—Rights of Subsisting Creditors— Interest.</p> <p>When A. advances money to 15., who is indebted to him, under an agreement that B. shall use the same in the purchase of articles to be prepared for the market by B. and then sent to A. for sale on commission, the net proceeds to be placed to B.’s credit, and it is also agreed that the things so purchased shall be the property of A., such * agreement entitles A. to claim the articles so purchased in B.’s possession as against pre-existing creditors of B. and his assignee for the benefit of creditors.</p> <p>Certain tanners who shipped leather to D. & Co. to be sold on commission became indebted to the latter on drafts in advance of sales. An agreement in writing was then made between the parties which set forth that the money advanced by D. & Co. was for the purchase of hides and bark ; that the leather was to be sent to D. & Co. for sale, and after deducting charges the net amount was to be placed to the credit of the tanners to pay their indebtedness to D. & Co. It was also agreed that the leather, &c., “is the property of D. & Co., and they are authorized at any time to come forward and take possession of the same, and there are no other parties furnishing us money for the purpose of buying hides and bark.” Subsequently the tanners made an assignment for the benefit of creditors, there being at that time upon their premises a large quantity of hides purchased with money advanced by D. & Co. These were sold by the assignees under an agreement that the rights of the parties should be transferred to the fund. The claim of D. & Co. to the same was contested by the trustees and by creditors of the tanners who were such at the time the agreement with D. & Co. was made. Held,</p> <p>ist. That D. & Co.’s claim to the property could not be disputed by the trustees u