Farwell v. Crandall

Citations

• 120 Ill. 70

Syllabus

<p>Insolvent debtors—assignment for the benefit of creditors—jurisdiction of the county court in the administration of an insolvent estate-how far exclusive in its character. An insolvent debtor made a voluntary assignment for the benefit of creditors. -The assignee took possession of the effects and estate of the debtor, and entered upon the duties of the trust. Subsequently, one of the creditors of the assignor recovered a judgment against him, for a certain sum, in a court of record other than the county court. Execution issued upon this judgment having been returned nulla borla, process of garnishment was sued out by the plaintiff, which was served upon the assignee, commanding him to appear and answer as the garnishee of the judgment debtor. Thereupon, the assignee presented to the county court a petition, setting up the foregoing facts, and stating that no property in which the debtor could be interested had come into his hands, except by virtue of the assignment mentioned, and asking the county court to restrain the further prosecution of the garnishment proceeding. The plaintiff in the judgment answered, admitting the facts as alleged, but charging, by way of defence, that the assignment was made in fraud of creditors. Upon this presentation of the matter, the county court ordered that any further prosecution of the garnishment proceeding be restrained and enjoined, not, however, passing upon the validity of the assignment, but reserving to the plaintiff in the judgment the right to contest that question, on proper proceedings, in the county court, and also reserving to the plaintiff all rights, if any, accruing to him by reason of having commenced the garnishment proceeding, to be adjusted also in that court. It was held, this disposition of the matters presented was correct. The county court having already full power and jurisdiction over the entire subject of the assignment, and the assets being in custodia legis, that was the proper forum in which to rai