Wilson v. Henderson

Citations

• 123 Cal. 258
• 55 P. 986
• 1899 Cal. LEXIS 1054

Syllabus

<p>Insolvency—Agreement of Creditors to Carry on Business—Agency of Assignee—Assumpsit.—A mutual written agreement of the creditors of an insolvent corporation authorizing and directing the assignee for his, their and each of their joint and several interest and advantage to carry on the usual business of the corporation, and authorizing, empowering and directing him to employ the necessary labor and buy the necessary supplies for that purpose, creates an agency of the assignee for such creditors as joint principals, who are liable as such to an action of assumpsit for supplies sold to the assignees on faith thereof.</p> <p>Id.—Partnership not Involved.—Such agreement does not involve any question of partnership or sharing of profits among the creditors, or of engaging in business on their part The question is simply one of agency, and of the liability of principals for acts done by their authority.</p> <p>Id.—Pleading—Agency for Creditors—Order of Court—Lien upon Assets.—In an action of assumpsit against the creditors as principals, for supplies furnished to the assignee as their agent, where the complaint specifically alleged that they were furnished under and in pursuance of the authority conferred upon the assignee by the terms of the agreement of the creditors, an allegation in the complaint that the defendants obtained an order of court authorizing the assignee to carry on the business, and directing that the costs of labor and supplies should be a first charge upon the assets, without, alleging that the supplies were furnished upon the authority of the order, does not show upon its face that the order is available to defeat the cause of action pleaded, or to relieve the creditors from their liabiity as principals, under the agreement, and to cast the whole liability upon the assignee.</p> <p>Id.—Consent to Order—Defensive Matter—Exhaustion of Lien.— The contention that plaintiff consented to be bound by the terms of the order, in seeking payment for his suppl