Ewing v. Van Wagenen

32 P. 1009, 6 Wash. 39, 1893 Wash. LEXIS 222
CourtWashington Supreme Court
DecidedMarch 7, 1893
DocketNo. 716
StatusPublished
Cited by1 cases

This text of 32 P. 1009 (Ewing v. Van Wagenen) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ewing v. Van Wagenen, 32 P. 1009, 6 Wash. 39, 1893 Wash. LEXIS 222 (Wash. 1893).

Opinion

The opinion of the court was delivered by

Stiles, J.

This appeal presents another phase of the same matter heretofore presented in Traders' Bank v. Van Wagenen, 2 Wash. 172 (26 Pac. Rep. 253). Appellant, as the assignee in insolvency of the individuals composing the firm known as the Buckley Lumber and Shingle Manufacturing Company, commenced his action against the insolvents, their respective wives and others who, it is alleged, are holding certain real estate conveyed by the insolvents in fraud of their creditors, to have the several conveyances set aside and the title cleared so that the property may be subjected to the payment of debts which would otherwise be unprovided for.

The allegation of the amended complaint is, that on the -day of April, 1891, Frederick Mottet was duly appointed assignee; that on the 6th of October, 1891, he resigned and his resignation was duly accepted by the court, and that on the same day the appellant was duly appointed as assignee in the place of Mr. Mottet. To this allegation each of the defendants answered as follows:

[42]*42“That said insolvency proceedings referred to in the complaint were begun January 22, 1890, and said assignment was made on said date under the 'provisions of the laws of the State of Washington then in force; that this action is brought by plaintiff under color and pretense of authority of said insolvency proceedings, and since the making of said assignment, said laws of the State of Washington, under which said insolvency proceedings were instituted, have been repealed, and have become without force and effect.”

The plaintiff demurred to this separate defense in each answer, on the ground that it did not state facts sufficient to constitute a defense. The demurrers were overruled and, plaintiff electing to stand on his demurrers, the action was dismissed at his cost, and he appeals from the judgment thereupon entered.

Upon the face of these answers the only question which we are required to determine is whether the act of March 6, 1890 (Laws 1889-90, p. 83), entitled “An act to secure creditors a just division of the assets of debtors who convey to assignees for the benefit of creditors,” had the effect to put an end to all insolvency proceedings then pending in the courts of the state, where no assignee had been elected when the act took effect.

It is admitted by the respondents that, upon the appointment of an assignee under the insolvency law found in the Code of 1881, all the assigned property of the insolvent passed to such assignee and could not afterwards be divested by the legislature. Under such concession it would not be strictly necessary that we go further in this case, since between the time when the petition for insolvency was filed, January 22, 1890, and the time when the act of March 6th went into effect, almost five months, there was ample time for proceedings, under the code, through which an assignee might have been appointed. The fact that it is alleged that Mr. Mottet was appointed assignee in April, [43]*431891, would not justify this court in presuming that no other assignee was appointed before June 7, 1890, when •the act-of that year became operative.

There are several provisions of the Code of 1881 which would lead to a different prima facie conclusion. Sec. 2018 required the judge receiving a petition to make an order requiring all creditors to show cause, etc.; § 2021 directed that the clerk issue a notice calling the creditors together within thirty days from the date of publication of the notice; and § 2031 provided that if, on the day appointed for the meeting, creditors having been duly summoned did not attend or refused to appoint an assignee, it should be lawful for the judge to authorize the sheriff to accept the surrender of the property offered by the debtor*, and perform in every respect the functions of the assignee. That these things had been done in case no assignee had been regularly appointed by the creditors, could be fairly presumed in favor of the demurrer to the answers in this case; but although such might be the condition of things, wé cannot overlook the fact that neither party in this case has suggested that any such appointment was made.

The case has been presented here largely upon the assumption that a receiver had been appointed, perhaps under the provisions of § 2022, and that such receiver held the property until the time of Mottet’s appointment in April, 1891. No such fact appears in the record in this case, but a glance at the case of Traders’ Bank v. Van Wagenen, supra, shows that originally a receiver to take charge of the insolvent’s estate was duly appointed, and it would seem, therefore, that we should not be discussing a purely imaginary state of things if we follow the briefs of counsel and assume it to be a fact that there was such a receiver.

The position assumed by the respondents is, that whatever might be the temporary orders in a case of insolvency, under the Code' of 1881, until an assignee had been ap[44]*44pointed, no title to any part of hi s' estate could be divested out of the debtor, for the reason, that that statute contained no apt provision for the accomplishment of a divestiture except that found in section 2046, wherein it was declared that the property of an insolvent debtor should be fully vested in his assignee for the benefit of his creditors from and after the surrender of his property. The surrender,' it is said, could not be accomplished until there was an assignee to whom the surrender could be made; and the receiver in such a case would be merely a temporary appointee to preserve the property from being wasted pending the appointment of an assignee; and the conclusion of their argument is, that notwithstanding the appointment of a receiver, there having been no assignee until long-after the act of 1890 had gone into effect, repealing the insolvency sections of the Code of 1881, there could then be no further proceeding in the matter, and the whole attempt at an assignment would fail. There is much plausibility in these propositions, and if, upon a review of the whole statute, it is found that this property had not been placed in such a position that the court could exercise jurisdiction to appoint an assignee and proceed with the matter, the conclusion, however surprising and unfair it might be, would have to be accepted.

At the outset, so far as the two laws are concerned, we have recently held that the act of 1890 by implication repealed the code provisions on the subject of insolvent debtors. Mansfield v. First National Bank, 5 Wash. 665 (32 Pac. Rep. 789).

It is true, also, that wherever the jurisdiction exercised in proceedings depends wholly upon statute, which is repealed without any saving provision in the repealing act, the jurisdiction is gone and all pending proceedings go with it. Endlich, Interp. Stat.,§479; Sutherland, Stat. Const., § 165; N. L. N. R. Co. v. B. & A. R. Co., 102 Mass. [45]*45386; Stephenson v. Doe, 8 Blackf. 508; People v. Livingston, 6 Wend. 526.

There was no saving provision whatever in the act of 1890. All laws and parts of laws in conflict with the provisions of that act were repealed by one sweep without an apparent thought that the greatest confusion might follow.

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Related

State ex rel. Baldwin v. Seavey
35 P. 389 (Washington Supreme Court, 1894)

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Bluebook (online)
32 P. 1009, 6 Wash. 39, 1893 Wash. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ewing-v-van-wagenen-wash-1893.