Johnston, Tallman & Co. v. Tuttle Bro's

Citations

• 65 Miss. 492

Syllabus

<p>Attachment. Deed of trust on stock of goods. Agreement for grantor to remain in possession and continue business. Case in judgment.</p> <p>T. .executed a deed of trust on his stock of goods to secure a promissory note in favor of E., and it was agreed verbally between them that T. should remain in possession of the goods, sell the same, replenish the stock, pay off his debts and conduct the business in his usual manner. This agreement was being carried out when T. was attached by one of his creditors on the ground that he had disposed of his property with intent to hinder, delay and defraud his creditors. In the trial of the issue raised by a traverse of the ground of attachment the facts above stated were proven; and there was evidence to show that T. and E. had no fraudulent intent in the matter. Held, that the legal effect of such an arrangement was to hinder, delay and defraud creditors, and the law conclusively imputes a fraudulent purpose, without regard to the actual motives of the parties. The attachment was properly sued out.</p>