Conroy v. Woods

Citations

• 13 Cal. 626
• 1859 Cal. LEXIS 218

Syllabus

<p>The lien of firm creditors is paramount to the lien of individual creditors.</p> <p>And, where one partner buys out his copartners, agreeing to pay the debts of the firm, the partnership property remains bound for firm debts, just as before the sale. The lien of firm creditors attaching, must be preferred to the lien of an individual creditor of the remaining partner, attaching first.</p> <p>A lien by attachment enables a creditor to file a creditor’s bill, without waiting for judgment and execution.</p> <p>Partners may make a bona fide sale of their property any time before their creditors acquire a lien; but such sale cannot include a sale directly or indirectly to one of the partners, with a stipulation, that he will pay the firm debts, there having been no credit given by the individual creditor on the strength of an apparent sole ownership in the vendee.</p> <p>The fact that an individual creditor obtains judgment, issues execution, and levies on firm property, gives him no right to the property as against firm creditors, who have not yet obtained judgment.</p> <p>In such case of conflict between the individual and firm creditors, equity has jurisdiction. Ño action lies against the Sheriff for levying the execution of the individual creditor, and a sale to different purchasers might result in a loss of the property.</p>