Furth v. Snell

Citations

• 6 Wash. 542
• 33 P. 830
• 1893 Wash. LEXIS 332

Syllabus

<p>FRAUDULENT CONVEYANCES — SUFFICIENCY OF EVIDENCE — ASSIGNMENT FOR BENEFIT OF CREDITORS.</p> <p>A debtor in failing circumstances made a bill of sale of his stock of goods and store fixtures to the plaintiff, the consideration paid by the plaintiff being the surrender of three promissory notes executed by the debtor as follows: One for $500, to the plaintiff, one for $3,700, to the debtor’s father, and one for $300, to the debtor’s brother-in-law, the latter two notes having been turned over to the plaintiff by the father and brother-in-law in payment of valid indebtedness from them to him; it was not clearly established that the debtor owed these sums to his father and brother-in-law, but it was clearly shown that the latter parties owed the sipns named to the plaintiff, and that the plaintiff acted in good faith, without knowledge of the debtor’s other indebtedness, or of any intent on his part to defraud. The plaintiff took possession of the stock of goods, but shortly thereafter it was attached by other creditors and sold as the property of the debtor, although the creditors had full notice of the plaintiff’s rights. Held, That the plaintiff was entitled to recover the value of the stock of goods and store fixtures.</p> <p>' The fact that a debtor in failing circumstances disposes of his entire property to one creditor does not work an assignment thereof, by operation of law, for the benefit of creditors.</p>