In re H. G. Andrae Co.

Citations

• 117 F. 561
• 1902 U.S. Dist. LEXIS 82

Syllabus

<p>L Bankruptcy—Liens—What Law Governs.</p> <p>Where a claim of priority is filed in bankruptcy, based on a chattel mortgage withheld from record for an unreasonable time, the validity of the claimant’s lien is to be interpreted by the statutes of the state governing the record of such mortgages, where the claim does not fall within the inhibitions of the bankrupt act.</p> <p>2, Same—Fraudulent Conveyance—Chattel Mortgages—Failure to Record-Unreasonable Delay—Effect.</p> <p>Rev. St Wis. 1898, § 2313, provides that no mortgage of personal property shall be valid against any other person than the parties thereto without delivery of possession, unless filed as prescribed by section 2314, which provides the place of filing, but contains no express limitation as to time. Held, that where a chattel mortgage was withheld from record an unreasonable time, and was not recorded until after the mortgagor had made an assignment for the benefit of his creditors, the mortgage was void, notwithstanding its subsequent record, as against creditors whose claims for goods sold arose prior to the recording of the mortgage.</p> <p>8. Same—Assignment for Creditors—Assignee—Powers.</p> <p>Since by Laws Wis. 1901, c. 207, an assignee for the benefit of creditors represents the rights of creditors in respect to transfers or liens which are fraudulent or void as to creditors, and the creditor is given the right to enforce such claims if not enforced by the assignee, a chattel mortgage executed by the assignor, but not recorded until after the assignment, was inoperative to create a lien on the assignor’s property as against the general creditors of the assignor.</p> <p>4. Same—Necessity of Prior Judgment.</p> <p>Since Laws Wis. 1901, c. 207, confers on contract creditors the right to enforce their claims as against transfers or liens fraudulent or void as to creditors, no prior judgment on the claims, nor resort to legal remedies, is required in order to establish such creditor’s interest.</