Whelan v. Shain

Citations

• 115 Cal. 326
• 47 P. 57
• 1896 Cal. LEXIS 1013

Syllabus

<p>Partnership—Preference of Partnership Over Individual Creditors—Priority of Attachment Immaterial.—The debts of a partnership must be discharged out of the partnership property before any portion of it can be applied to the individual debts of the partners; and the creditors of the partnership are entitled to preference over the creditors of the individual partners in the payment of their debts out of the partnership property or moneys arising therefrom, without regard to the priority of attachment liens.</p> <p>Id.—Joint Note—Individual Action and Judgment.—Where an action is brought against two partners, as individuals, upon a joint note executed by them individually and not as partners, and a judgment is rendered therein against them jointly, as individuals, and not as partners, an attachment in such action levied upon the partnership assets is subject and subordinate to a subsequent attachment levied upon such assets by a creditor of the partnership who sues the partners as such, and the latter is entitled to priority of payment out of moneys realized by the sheriff from sale of the partnership property.</p>