Clayton v. Johnson

36 Ark. 406
CourtSupreme Court of Arkansas
DecidedNovember 15, 1880
StatusPublished
Cited by13 cases

This text of 36 Ark. 406 (Clayton v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clayton v. Johnson, 36 Ark. 406 (Ark. 1880).

Opinion

Enolish, C. J.

The deed of assignment under which ihe litigation in this case arose, is, in substance, as follows:

“Whereas, we, Chowning, Saunders & Co., a firm doing business in the city of Pine Bluff, etc., are indebted to McGehee, Snowdon & Violett, of the city of New Orleans, etc.; E. T. Jaffrey & Co., of the city of New York; Renner & Co., B. Lowensteiu & Co., and Schoolfield, Hannauer & Co., of the city of Memphis, etc., in a large amount of money, much beyond our ability to pay, and being desirous of securing said creditors, as well, also, as all other creditors whom we may be owing, now we, said Chowning, Saunders & Co., do hereby grant, bargain and sell to W. I). Johnson, assignee, in trust, for the benefit of our creditors, the goods, wares and merchandise hereto attached in schedule “A,” made part of this conveyance, to have and to hold to him, in trust, as aforesaid, forever.

“We do likewise convey to the said W. D. Johnson, for the use aforesaid, and in trust aforesaid, all notes, books, accounts, and every class and character of evidences of debt to us belonging, or relating to our business in any manner whatever, with full authority in said Johnson to collect the same and apply them to the uses of this trust.

“The said Johnson shall proceed to sell said goods, etc., on the best terms he can, in his discretion, and the proceeds apply to the payment of our creditors, share and ■share alike; provided, that no creditor herein provided for shall participate in the assets herein assigned unless he accepts the same in full of his claim; and provided further, that nothing shall be claimed or collected from Bettie Saunders or Dillard Saunders. This assignment to be ■closed up under the direction of creditors assenting to the same.

1. Assignment: Statute of, is constitutional.

“This January 19, 1878.

“Chowning, Saunders & Co.”

It may be remarked, in passing, that it.' appears that Bettie Saunders and her husband, Dillard Saunders, were not indebted to the grantors at the time the assignment was made.

On the diy the assignment was made (the nineteenth of January, 1878), the stock of goods in controversy in this suit were, under the deed of assignment, turned over to and taken possession of by Johnson, the trustee, and he made an inventory and prepared his bond as such.

The assignment was accepted by McGehee, Snowden & Violett, E. S. Jaffray & Co., W. A. Blome & Co., and other creditors, but not by Schoolfield, Hannauer & Co , nor B. Lowenstein & Co.

On the twenty-sixth of January, 1878, the two dissenting firms brought suit against Chowning, baunders & Co., the makers of the assignment, before a justice of the peace of Vaugine towoship, in which Pine Bluff is situated. On the ■sixth of February following, they recovered judgment in the-suits, and on the same day executions were issued thereon and placed in the hands of a deputy of John M. Clayton, sheriff, etc., at which time the goods in controversy were in the possession of the trustee, in said township, and locked up in a house in which they were kept, and had been in his actual possession for ten days. The sheriff's deputy demanded the key for the purpose of levying the execution on the goods, and the trustee said to him that he would give him the key or an answer in half an hour. Before the expiration of the half hour, the-trustee filed a schedule of the goods in the office of the clerk of the probate court, and procured the judge of said court to approve his bond as trustee, under the statute-regulating assignments (see Gantt’s Dig., ch. X), and then, refused to surrender the key; whereupon the sheriff's deputy broke the door, levied the execution upon the goods, and took them into his possession.

Johnson, the trustee, brought this action against Clayton, the sheriff, in the circuit court of Jefferson county, and,, on a trial before the court, obtained judgment.

I. The ninth declaration of law, moved for appellee, vaguely expressed, was, perhaps, intended to question the constitutionality of the statute regulating assignments. Its language is, that: “The probate court had no jurisdiction of the matters in controversy.” The court refused to make this declaration, but the judgment was in favor of appellee, he did not appeal, and if its refusal was an error, he was not prejudiced by it. If, however, the statute is-plainly in conflict with any provision of the constitution,, it is invalid, and it would be useless to consider further a question in the ease involving its construction.

The statute requires the assignee in an assignment of property for the payment of debts, to file in the office of the clerk of the probate court a full and complete inventory and description of such property.

It also requires the assignee to make and execute a bond to the state, in double the estimated value of the property in the assignment, with good and sufficient security, to be approved by the judge of said court, conditioned that such assignee shall execute the trust confided to him, sell the property to the best advantage, and pay the proceeds, thereof to the creditors mentioned in said assignment, according. to the terms thereof, and faithfully perform the duties according to law.

Also, “ That such assignee shall, at the first term of the-probate court of the county in which such assignment is made, after one year from the date of said assignment, and at the corresponding term of said court every year thereafter, until the proceeds of the property assigned be disposed of for the'benefit of the creditors, present to the probate court a fair written statement, or account current, in which he shall charge himself with the whole amount of the property assigned, including all debts due, or to become due, and credit himself with all sums of money ex- ■ pended, either by the payment of debts, or otherwise, exhibiting with such account the receipts and vouchers for all moneys paid out to the creditors of said assignment, which said account, so made out, shall be filed in the office of the clerk of the probate court of said county, and become a part of the record thereof; certified copies of which shall be competent evidence of the facts therein contained, in any of the courts of this state, in the same manner and to the same extent as the records of any other court.”

Finally, that the assignee shall sell all the property assigned, etc., within 120 days after the execution of the bond, etc., and that any person damaged by his neglect, waste, or misconduct, may bring an action on the bond, in the name of the state, for his use, etc. Acts of 1858-9, p. 151; Gantt’s Digest, secs. 385-7.

At the time the act was passed (February 16, 1859), the constitution of 1836 was in force; and, by it, the county judge was made judge of the court of probate, with such jurisdiction in matters relative to the estates of deceased persons, executors, administrators and guardians as might be prescribed by law, etc. Art. 7, sec. 10.

There was a similar provision in the constitution of 1864. Art. 8, sec. 12.

By the constitution of 1868, inferior courts, including courts of probate, and their jurisdiction, were under legislative control. Art. 8, sec. 5.

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Bluebook (online)
36 Ark. 406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clayton-v-johnson-ark-1880.