Field v. Ridgely

Citations

• 116 Ill. 424
• 6 N.E. 156

Syllabus

<p>1. Assignment for the benefit of creditors—under the statute— of a prior execution lien. The issuing of an execution upon a valid judgment, and its levy upon goods by the sheriff, will give the plaintiff in execution a valid lien on the same prior to the claims of other creditors of the defendant in the execution, under an assignment made by him after the execution came into the hands of the officer.</p> <p>2. In this case, after the entry of a judgment by confession and the issue of an execution thereon, the judgment debtor made a general assignment of his property, under the statute, for the benefit of creditors, and the assignee replevied the goods levied upon under the execution, and took the same from the sheriff, and made sale of them. The other creditors proved their claims in the county court, and that court directed the assignee to pay the judgment creditor first, out of the proceeds of the sale, which was done: Held, that the judgment creditor had the prior lien on the goods when replevied, and in equity was entitled to have their proceeds applied, as they were, in satisfaction of his judgment, and that the other creditors could not •maintain a bill to have such proceeds returned and applied in payment of their claims, in the absence of any other equitable grounds.</p> <p>3. Same—failure of a creditor to record his mortgage—or to make prompt collections—or to give notice of his dealings with his debtor—as affecting the rights of other creditors. The fact that a creditor having judgment notes and a mortgage to secure them, neglects to record the mortgage given to secure the same, and fails to take prompt measures to collect his notes when due, or give notice to others dealing with the debtor and giving him credit in ignorance of his financial embarrassment, when not asked to do so by them, is not evidence of fraud as against such subsequent creditors, so as to make the prior creditor a trustee for them in respect to property levied upon under a judgment