Newell v. Morgan

Citations

• 2 Del. Ch. 20

Syllabus

<p>The oldest judgment creditor at law, having obtained a decree in equity setting aside a fraudulent conveyance to the debtor’s children of land purchased by him prior to the recovery of the judgment, is not entitled to a preference in equity in the distribution of the proceeds of the land sold under a decree. In such case the equitable doctrine of distributing assets among creditors pari passu applies.</p> <p>Equity will recognize and give effect to a judicial preference at law by judgment or execution ; but such judicial preference arises, not out of the speed of the parties in pressing their claims at law but out of their having obtained a prior legal lien upon the property in controversy.</p>