Lilienthal v. Ballou

Citations

• 125 Cal. 183
• 57 P. 897
• 1899 Cal. LEXIS 823

Syllabus

<p>Pledge oe Merchandise by Partnership—Attachment—Leviable Interest oe Pledgors—A transfer of a stock of merchandise by a partnership to trustees as security for the payment of the claims of certain attaching creditors, who released their attachments when the transfer was made, is in the nature of a pledge, dependent upon actual possession. If the pledge is valid, the firm, as the owner of the property, subject to the rights of the trustees for the creditors, has a leviable interest which may be reached by garnishment; and if it is not valid, the property itself may he seized upon attachment by another creditor of the firm.</p> <p>Id.—Statute op Frauds—Delivery and Change of Possession.— In order to render such a pledge of the partnership property effective against seizure under an attachment by another creditor of the firm, the delivery to the trustees for the creditors must he as complete, and the actual change of possession as continuous and open, as is required in case of sales of personal property, by section 3440 of the Civil Code.</p> <p>Id.—Continuance of Managing Partner—Insufficient Change of Possession.—Where the agreement between the firm and the trustees for the creditors provided that the managing partner should he continued in employment, at a salary, subject to the supervision of the trustees, who did not take personal possession, and the business was continued under the control of the same manager, and with the same employees as before, and the conspicuous signs of the partnership were allowed to remain, with a small and less conspicuous sign added, containing the names of the trustees designated as successors to the firm, and the business continued to be advertised extensively in the name of the firm, there was no sufficient change of possession, to prevent seizure of the property under attachment by another creditor of the firm.</p> <p>Id.—Possession of Pledgors—Attached Property—Effectiveness of Pledge—Actual Change of Possession.—The fact the f