Davis v. Billings

Citations

• 254 Pa. 574
• 99 A. 163
• 1916 Pa. LEXIS 770

Syllabus

<p>Bankruptcy ■ — ■ Trustee’s title — Oharactei--Conflict of laws — Claims against trustee.</p> <p>1. A trustee in bankruptcy is vested with no higher or better right or title to the property than the bankrupt had when the trustee’s title accrued, and unless in contravention of some established principle of law or public policy a claim valid against the bankrupt will be held valid against the trustee.</p> <p>2. Unless the bankruptcy law otherwise provides, the validity of an assignment or claim is to be determined in accordance with the principles of the local law.</p> <p>Pledgor and pledgee — Retention of possession by pledgor — Validity of pledge.</p> <p>3. While in ordinary cases of pledges of personal property possession of the pledge by the pledgee is indispensable to the validity of the pledge, where by agreement of the parties, possession is to remain with the pledgor, all are bound who claim under the latter except purchasers for value without notice.</p> <p>4. An, executory agreement whereby the owner of personal property discloses an intention to make the property mentioned in the agreement security for a debt or other obligation creates an equitable lien upon the property indicated, enforceable against the property in the hands of not only the original pledgor but of his heirs, administrators, executors, voluntary assignees and purchasers or encumbrancers with notice.</p> <p>Bankruptcy — Preferences-—Validity—Pledge—Action by trustee against pledgee — Defenses—Case for jury.</p> <p>5. In' an action by a trustee in bankruptcy to recover sums paid defendant by the bankrupt within four months of the bankruptcy and at a time when he was insolvent, the trial judge erred in refusing defendant’s offer to prove that the sums so paid were the proceeds of the sale of autombbiles which more than four months prior to the bankruptcy the bankrupt had agreed to pledge with defendant to protect him from liability on certain notes of tbe bankrupt which he had endorsed and