Jacobs Bros. & Co. v. Ervin

Citations

• 9 Or. 52

Syllabus

<p>Insolvency — Assignment—Enforcement of Creditor’s Rights.</p> <p>An assignee for the benefit of creditors, under the act of October 18, 1878, does not occupy the position of a purchaser in good faith, but he is, under said act, the trustee of the creditors, as to the property conveyed to him by the assignment, and so far represents them that it is his duty to oppose any attempt by a creditor who claims a lien on any of such property, which is void as to other creditors, to enforce the same. Such power is essential to the effectual performance of his trust.</p> <p>Chattel Mortgage — No Lien when Fraudulent.</p> <p>Where, upon the execution of a chattel mortgage on a portion of a stock of goods in the store of a retail merchant, there is a verbal agreement between the parties that the mortgaged goods shall remain in the mortgagor’s possession, and form part of his stock in trade, and that he shall have full power to sell and dispose of the same in the usual course of his business, and the mortgagor did retain possession and hold the goods for sale in accordance with such agreement: Held, that the chattel mortgage was fraudulent and void as to the other creditors of the mortgagor, and created no lien on the goods. Following the case of Orton v. Orton, 7 Oregon, 478.</p>