Frazier v. Fredericks

24 N.J.L. 162
CourtSupreme Court of New Jersey
DecidedNovember 15, 1853
StatusPublished

This text of 24 N.J.L. 162 (Frazier v. Fredericks) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frazier v. Fredericks, 24 N.J.L. 162 (N.J. 1853).

Opinion

The Chief Justice

delivered the opinion of the court.

The general principle is fully and unequivocally settled, that personal property is transferable according to the law of the country where the owner is domiciled. A transfer of personal property, therefore, good by the law of the owner’s domicil, or by the law of the place where it is made, is valid wherever the property may be situate. Story on Conf. of Laws, § 383, 384; 2 Kent’s Com. 454; Varnum v. Camp, 1 Green 329.

The general principle is not universally true, but is subject to several exceptions. The necessary intercourse of mankind requires, to use the language of Chancellor Kent, that the acts of parties, valid where made, should be recognised in other countries, provided they be not contrary to good morals nor repugnant to the policy and positive institutions of the state. 2 Kent’s Com. 455.

The principle applies to a voluntary conveyance of property by the owner, not to a conveyance by operation of law. An assignment by law has no legal operation out of the territory of the law maker. Such, at least, is conceded to be the decided weight of American authority. Milne v. Morton, 6 Binney 361; Blake v. Williams, 6 Pick. 307; Holmes v. Remsen, 20 J. R. 266; Story on Conf. § 410; 2 Kent’s Com. 406.

The assignment under which the plaintiff claims is not an involuntary legal conveyance, or statutory transfer of property, made in case of bankruptcy or insolvency. It is a voluntary assignment, made by a debtor residing in Pennsylvania, for the benefit of his creditors. Such an assignment all the authorities (even those which most strenuously deny the operation of a statutory transfer upon extra-territorial property) concur in holding valid and effectual to vest extra-territorial property in the assignee, as against a subsequent attaching [167]*167creditor of the state where the property is situate. “ I do not mean,” said Justice Platt, while denying the prior right of an assignee under the English bankrupt act over an attaching creditor in the state of New York, “to suggest a doubt that, independent of the statutory transfer, a bona fide assignment for valuable consideration, or for payment of debts, fully made by such foreign creditor himself, would be valid against a subsequent attachment here.” Holmes v. Remsen 20, J. R. 260.

And Chief Justice Tilghman, while maintaining the same views against the efficacy of an involuntary assignment under the bankrupt law, said, “ We have no laws prohibiting foreigners from a free disposal of their personal property situate here; therefore, if Topham (the bankrupt) had made an assignment of his property in the hands of the garnishee, the case would not have admitted of a moment’s speculation.” Milne v. Morton, 6 Binney 361.

. And the Supreme Court of Massachusetts distinguish, in like manner, between a statutory and a voluntary trausfer for the benefit of creditors, even where preferences are given to particular creditors. The latter, they say, would be consistent with our laws and our practice. Admitting their validity is merely acknowledging the personal right of the proprietor to dispose of his effects for honest purposes. Blake v. Williams, 6 Pick. 314. See Green v. Mowry, 2 Bailey 163; Speed v. May, 5 Har. 93; 6 Ib. 185.

A voluntary assignment, made by a debtor for the benefit of his creditor, would seem, upon principle, to stand upon the same ground, so far as the present inquiry is concerned, with any other transfer of personal property by the owner. If, then, a sale by the owner of property lying in a foreign state be effectual for the absolute transfer of the property to the vendee, an assignment of the same property for the benefit of creditors must be equally valid and effectual.

Admitting the assignment to be valid by the laws of Pennsylvania, where the assignment was executed, there is nothing in its terms repugnant to the provisions of our statutes or to the policy of our laws. The terms of the trust are, that tho trustee shall convert the property assigned, as speedily as may be, [168]*168into cash, and, as the proceeds are from time to time realized, to pay all the creditors of the assignor their respective demands, indiscriminately and without preference. It is said that there is no provision in the trust for the payment of the creditors in the ratio of their respective claims, and that the assignee may, at his discretion, pay one creditor in preference to another. But this construction is plainly inadmissible, and is in fact in direct conflict with the express terms of the trust, which requires that the trustee shall pay all the creditors their respective demands indiscriminately and without preference. The terms of the trust are in fact in strict accordance with the provisions of our statute, which forbids all preferences of one creditor over another. It may be added, moreover, that it is in accordance with the dictates of justice and with sound morality. The case, therefore, does not fall within the objection which prevailed in Varnum v. Camp, being that the contract was in violation of a statute of this state, and in contravention of its obvious policy. If the contract was valid and effectual for the transfer of the property of the assignor in Pennsylvania, it is, upon the principles already stated, equally effectual for the transfer of his property in this state.

Independent of any peculiar provision of the laws of Pennsylvania, the assignment is clearly a valid contract at common law, made for a lawful purpose and upon a valuable consideration. It is proven moreover, upon the trial, that the assignment is valid by the laws of Pennsylvania. It is in no wise material that the assignment was not recorded in this state, or that the particular directions prescribed by our statute have not been pursued, unless, indeed, the broad ground be assumed, that no assignment for the benefit of creditors made in another state can prevail in this state against the claim of an attaching creditor. But no such objection is adverted to in Varnum v. Camp. That case, indeed, proceeds upon the ground, that the assignment made in New York, if not made in contravention of law, would have been effectual to transfer the property in this state.

It is objected that the assignment cannot operate as a valid transfer of the vessel, because there was no delivery of the [169]*169property to the vendee. The assignment bears date on the 9th of August, 1851. The trust was accepted, and the deed recorded on the 11th of August. At the date of the assignment, the vessel in question was lying at the wharf in Camden, and so continued until the 16th of August, when it was attached by the sheriff, at the suit of a New Jersey creditor, as the property of the assignor, being then in charge of his watchman. The boat was sold by the auditors in attachment, under an order of the court, on the 15th of October, and purchased by the defendant in this suit, no possession having in the mean time been taken, or attempted to be taken, of the vessel by the plaintiff.

By the common law, as understood in England and in this state, delivery is not necessary upon a sale of a chattel to vest the title in the vendee.

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Bluebook (online)
24 N.J.L. 162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frazier-v-fredericks-nj-1853.