Smith v. J. B. Moors & Co.

Citations

• 215 Pa. 421
• 64 A. 593
• 1906 Pa. LEXIS 814

Syllabus

<p>Equity — Equitable assets — Distribution among creditors — Equality is equity — Mingling of goods.</p> <p>It is a general rule that equitable assets shall be distributed equally and pari passu among all the creditors without any reference to the priority or dignity of the debt; for the courts of equity regard all debts in conscience as equal jure naturali, and equally entitled to be paid; and here they follow their own favorite maxim that equality is equity. And if the fund falls short, all the creditors are required to abate in proportion.</p> <p>Where a pledgee of goods belonging to different persons, or upon which different persons have liens, mixes the proceeds of the sale of the goods so that it is impossible to identify any specific part of the money as having been derived from any specific goods, a court of equity will not prefer one claimant over another, but if there is a deficiency all will be required to abate in proportion.</p>