Francisco v. Aguirre

29 P. 495, 94 Cal. 180, 1892 Cal. LEXIS 662
California Supreme Court·Decided March 30, 1892·No. No. 13956·Published·Cited by 24 cases

Opinions

Harrison, J.

In October, 1888, Mrs. M. E. Edmonston, being the owner of certain household furniture then situate in the Ramsay House, at Los Ángeles, executed a bill of sale thereof to Martha O’Hara for the sum of $825, and at the same time received from her a lease of the same furniture until February 1, 1889, that being [181] the date at which a lease of the Ramsay House would expire. On the first day of February, 1889, Mrs. O’Hara made demand of Mrs. Bdmonston for the possession of the furniture, and upon being refused such possession, on the next day began an action of claim and delivery therefor. At the time of ‘making the bill of sale, Mrs. Bdmonston was indebted to various parties, and on the morning of February 2d made an assignment to the plaintiff for the benefit of her creditors, which was filed for record in the recorder’s office at ten minutes after nine o’clock of that morning. The plaintiff did not, however, take possession of the furniture on that day, and, later in the day, the defendant Aguirre, as the sheriff of the county, took the property under directions therefor given by the plaintiff in the action of Mrs. O’Hara, and when the plaintiff went there two or three days later,” he found the sheriff in possession under those proceedings. The defendant in that action not having demanded a redelivery of the property, the sheriff, on the 9th of February, turned the property over to Mrs. O’Hara. The present action was brought by the plaintiff against the sheriff and Mrs. O’Hara for a conversion of the property, in which a verdict and judgment was rendered in his favor, and from which, and an order denying a new trial, the defendants appealed.

The question presented upon the appeal' is the validity of the sale from Mrs. Bdmonston to Mrs. O’Hara, and the right of the plaintiff to question such validity.

At the trial the court instructed the jury as follows: In this case if you should find from the evidence that the transfer made by Mrs. Bdmonston to Mrs. O’Hara was in fact an actual sale of the property in question, but that the vendor, Mrs. Bdmonston, did not make an immediate and actual delivery of the property so sold to the vendee, or if such delivery, then that the same was not followed by an actual and continued change of the possession of the property so sold, then such a transfer would be wholly void as against this plaintiff, and would not affect any rights acquired by him as assignee of the [182] said Mrs. Edmonston. If the jury should find from the evidence that the instrument executed by Mrs. Edmonston to Mrs. O’Hara, and designated as a bill of sale, was in fact made for the purpose of securing an indebtedness then existing between the parties, and to become due thereafter, then such a transaction would not constitute an actual sale of the property, but would be more in the nature of a mortgage. In that event, unless it appears to your minds that such mortgage was given to secure the purchase price of the property so mortgaged, then the transfer would be void as to this plaintiff.”

Other instructions of the same import were given by the court.

Upon the execution of the bill of sale to Mrs. O’Hara, the title to the property therein described vested in her; and although, without an actual delivery and a continued change of possession, such title could not be asserted by her against the creditors of her vendor, yet, as between the parties to the instrument, she could at any time maintain an action to recover the possession from her vendor, irrespective of such non-delivery. The plaintiff, as the voluntary assignee of Mrs. Edmonston, acquired no greater right in. the property than she had at the time of the assignment. As the statute stood at the date of this assignment to the plaintiff, an assignee for the benefit of creditors was selected by the assignor, and, subject to the statutory restrictions, acquired only those powers or rights in reference to the property assigned which were embraced in the instrument of assignment.

Upon the principle that an assignor cannot confer upon his assignee any greater right than he himself had in the property, it is held, in an almost unbroken line of authorities, that, in the absence of any statute giving such power, the assignee cannot maintain an action to recover property that had been conveyed by his assignor in fraud of his creditors. This rule rests upon the ground that the assignee is merely the representative of his assignor, and does not represent the creditors, and [183] that, notwithstanding the assignment, they are not bound to accept its provisions, but may themselves subject such property to the satisfaction of their debts. This right is held by them, not as beneficiaries under the assignment, or by virtue of any of its provisions, but as creditors of the assignor, and wholly independent of its provisions.

“ Under the common law of assignments, the assignee stands in the place of the assignor, and can assert no claim to property which the assignor might not. The assignment, therefore, does not carry with it to the trustee the title to property which the assignor has previously transferred in fraud of his creditors, for the purpose of hindering, delaying, and defrauding them.” (Burrill on Assignments, sec. 110. See also Wait on Fraudulent Conveyances, sec. 115; Brownell v. Curtis, 10 Paige, 219; Estabrook v. Messersmith, 18 Wis. 551; Hawks v. Pritzlaff, 51 Wis. 160; Vandyke v. Christ, 7 Watts & S. 373; Marks’s Appeal, 85 Pa. St. 233; Housel v. Cremer, 13 Neb. 298; Keller v. Smalley, 63 Tex. 520; Heinrichs v. Woods, 7 Mo. App. 236; Browning v. Hart, 6 Barb. 91; Leach v. Kelsey, 7 Barb. 470; Warner v. Jaffray, 96 N. Y. 254; Flower v. Cornish, 25 Minn. 473; Wakeman v. Barrows, 41 Mich. 363; Stewart v. Platt, 101 U. S. 739; Wilson v. Randall, 14 R. I. 621.)

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Francisco v. Aguirre, 29 P. 495, 94 Cal. 180, 1892 Cal. LEXIS 662 (Cal. 1892).

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