Davis v. Hukill

Citations

• 173 Pa. 138
• 33 A. 882
• 1896 Pa. LEXIS 670

Syllabus

<p>Debtor and creditor — Fraud—Sale—Assignment.</p> <p>A bona fide creditor who takes his own money to redeem hypothecated property of his debtor in order to prevent its being sacrificed, and at the same time takes from the debtor an assignment of the property so that he may sell it and pay his debt, is not guilty of constructive fraud against the other creditors of the debtor, and such a creditor is held to a less strict accountability than a mere volunteer who interferes to help the debtor.</p> <p>Where such a creditor actually redeems the property and takes a transfer of it to himself, he may afterwards employ the former owner to sell the property, and even allow him a large commission therefor without being liable to the other creditors of the former owner, as for a constructive fraud.</p> <p>In such a transaction the fact that, at the time the other creditors sought to hold liable the creditor to whom the property was assigned, the property was in value greatly in excess of the amount which was paid for it, is immaterial where it appears that the property at the time of the assignment was. of uncertain value, and that it subsequently increased in value-through more economical administration and additional capital^</p>