Oppenheimer v. M. Halff & Bro.

Citations

• 68 Tex. 409
• 4 S.W. 562
• 1887 Tex. LEXIS 707

Syllabus

<p>1. Sale of Goods—Debtor and Creditor—Fraud.—A debtor in failing circumstances has the right to prefer a creditor, and to this end to sell out to him bis entire stock of merchandise; if the goods thus transferred in payment are not of value more than the debt, no fraud is perpetrated provided the only purpose of the creditor who receives payment in this manner, is to collect.his debt.</p> <p>2. Same.—If, however, the merchandise thus conveyed, exceeds in value the sum due, and the creditor being aware of this fact, and of the debtor’s insolvency, pays to the creditor a sum of money to induce the transfer, whereby other creditors are prevented from enforcing their claims against so much of the. goods as are not necessary to pay the preferred creditor’s claim, then the conveyance should he deemed fraudulent, and the entire transaction void as to other creditors.</p> <p>3. Same—Attachment—Measure of Damages.—In determining the liability of the purchasing creditor, in a suit by other creditors, if the purchase be deemed fraudulent, the value of the goods transferred in payment of the preferred claim at the time of their transfer and conversion, is the measure of the preferred creditor's liability and not the sum real ized afterwards from their sale. .</p>