Dexter Horton & Co. v. Schwabacher Bros. & Co.

Citations

• 5 Wash. 344
• 32 P. 771
• 1892 Wash. LEXIS 66

Syllabus

<p>APPEAL —FINAL ORDER — DISTRIBUTION OF FUNDS HELD BY ASSIGNEE— ASSIGNMENT FOE BENEFIT OF CREDITORS—RIGHT OF SECURED CREDITOR.</p> <p>On an application for a partial distribution of the funds in the hands of the assignee of an insolvent debtor the court directed the assignee to pay dividends to all the creditors except plaintiff, which held collateral security; that plaintiff be first required to exhaust its collateral security and apply the proceeds to the reduction of its debt, and that it thereafter be paid dividends upon the balance of its debts, which dividends should equal at the time of payment the rate of dividends paid to the other creditors up to that time, and that in the meantime the assignee retain .sufficient funds in his hands to meet the requirements of said order. Held, That the order is final so far as it affects the plaintiff’s rights to that portion of the proceeds of the estate which was distributed, and that an appeal will lie therefrom.</p> <p>Where an assignment has been made for the benefit of creditors, a secured creditor is entitled to share pro rata with the unsecured creditors in the assets of the insolvent estáte only upon the balance of his claim which remains after exhausting and applying the proceeds of his security to its diminution.</p>