Nixon v. Joshua Hendy Machine Works

Citations

• 51 Wash. 419
• 99 P. 11
• 1909 Wash. LEXIS 1203

Syllabus

<p>Assignment — -Delivery — Acceptance — Garnishment op Claims Before Delivery. There is not a complete assignment by an insolvent corporation of certain claims to one of its creditors, in part satisfaction of indebtedness, where it was made upon the express understanding that the assignee should give credit for all sums actually collected under the assignment, and the assignment was not delivered or made known to or accepted by the assignee until after the claims had been garnished, and where after the assignment part of the claims were paid directly to the assignor with the knowledge and consent of the assignee.</p> <p>Process — Nonresident Defendants — Publication of Summons and Garnishment — Assignment op Claims. The court acquires jurisdiction of nonresident defendants on service of summons by publication and the garnishment of assigned claims, where the assignment was not completed by delivery and acceptance before the issuance of the garnishment.</p> <p>Corporations — Insolvency- — -Assets — Fraud Upon Creditors. A corporation that is not able to pay its debts in due course of business is insolvent, so far as creditors are concerned, and cannot prefer a creditor.</p> <p>Same — Assignment in Fraud of Creditors. Where two corporations were controlled by the same stockholders and officers, and one was used as a shield for the benefit of the other, they are not independent concerns, and an assignment of assets by one to the other is fraud upon creditors of the assignor.</p>