Howell v. Moores

Citations

• 127 Ill. 67
• 19 N.E. 863

Syllabus

<p>1. Insolvent debtors—assignment for the benefit of creditors—prior to act of 1877. The provisions of an act concerning voluntary assignments, and conferring jurisdiction therein upon county courts, which took effect July 1, 1877, have no application to an assignment by an insolvent debtor or debtors made before that act took effect.</p> <p>'2. Same—assignment by partnership firm, and by the individual part-tiers—rule of distribution. Where co-partners make an assignment of tlieir individual and firm property for the benefit of their creditors, in the absence of statutory regulations the assignee will be justified in making such distribution as the assignment calls for, there being no proof of any fraud or improper conduct either in the making of the deed or in the carrying out of its provisions.</p> <p>3. A and B, composing a partnership firm, made an assignment, in January, 1877, of all the partnership and individual property, to an assignee, for the benefit of their creditors, both of the firm and of the individual partners. The schedule of debts, made a part of the deed of assignment, described three notes, of $500 each, signed severally by each partner, in his own name, as partnership or firm debts. The assignee, in distributing the proceeds of thé assets of the firm and of the several partners, treated such notes as firm obligations, and paid dividends on them out of the partnership assets: Held, on bill seeking to hold the assignee’s estate liable for not applying the proceeds of the estate of the several partners on such notes, that he was justified in acting as he did under the instrument which defined his powers and duties, and that his estate was not liable for his not applying the assets of the several partners upon the notes.</p> <p>i. Same—compensation of assignee. An assignee’s account, in the case of a voluntary assignment to him for the benefit of creditors, showed credits for his services in excess of that allowed by law for similar services by a