Sacry v. Lobree

Citations

• 84 Cal. 41
• 23 P. 1088
• 1890 Cal. LEXIS 757

Syllabus

<p>Insolvency — Definition — Ability of Merchant to Pay Debts — Preference of Creditor — Action by Assignee. —A debtor is not insolvent, within the meaning of the insolvent law of this state, if he has sufficient means or resources of any kind to enable him to pay all of his debts as they become due in the ordinary course of business, though he may not have sufficient money in hand or in hank to meet them, or to pay a particular debt in money when due; and a finding, in an action by the assignee of an insolvent merchant against a preferred creditor to recover property transferred in payment of the debt to such creditor, that, at the time of the conveyance and transfer to the creditor of such property, the debtor was not insolvent or unable to pay his just debts, will be sustained, if the evidence shows that the merchant then had property enough to enable him to pay all of his debts, and that he intended to pay them all, and did not contemplate insolvency, though he was then under attachment for a small amount, and had not money on hand sufficient to pay all of his creditors whose claims were due at that time. (Beatty, C. J., and Thornton, J., dissenting.)</p>