Haskins v. Alcott & Horton

13 Ohio St. 210, 13 Ohio St. (N.S.) 210
CourtOhio Supreme Court
DecidedDecember 15, 1862
StatusPublished
Cited by27 cases

This text of 13 Ohio St. 210 (Haskins v. Alcott & Horton) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haskins v. Alcott & Horton, 13 Ohio St. 210, 13 Ohio St. (N.S.) 210 (Ohio 1862).

Opinion

Puck, J.

Alcott & Horton having obtained judgment in Wood common pleas against the firm of Haydns, Roller & Haskins, under the provisions of section 1 of the “ act regulating suits by and against companies and partnerships ” (S. & C. St. 1188), authorizing suits by and against companies and associations, formed, for the purpose of carrying on any trade or business within the State of Ohio, by the usual and ordinary name of such firm, and being unable to make the amount of the judgment out of the joint effects, sought, in the petition filed in Wood common pleas, to subject the individual property of the persons composing said firm to its [213]*213payment, as authorized by section 4 of the act above referred to.

The persons composing the firm of Haskins, Roller & Has-kins answered in bar of the petition, that prior to the filing thereof, the firm, and the individuals members thereof, had, jointly and severally, made legal and valid assignments of all their joint and separate property to Samuel Johnson, for the benefit of all the creditors of said firm, including said plaintiffs. That Johnson had accepted the trust and was then fulfilling its duties, under the order and direction of the probate court of said Wood county ; but that the claim of the plaintiffs had not been filed or offered to be filed with said assignee, nor had it been rejected by him.

A demurrer was sustained to this answer in the court of common pleas, and the principal error relied on for reversal of the judgment in the district court, was the sustaining of that demurrer.

The answer assumes, that the mere execution of a' legal and valid assignment by the debtor firm and its several members, of all the joint and separate property, for the benefit of all its creditors, and its acceptance by the assignee, deprives the creditors of such firm of all the remedies previously open to them, for the collection of their claims; or at least suspends all such remedies, until the trust created by the assignment has been discharged by the realization and distribution of the trust fund.

The general principle certainly is, that a debtor can not change his relation to his creditors by a voluntary assignment to them. Burrill on Assignments, 340. To have this effect there must have been an assent, amounting to an acceptance, of the assignment, by the particular creditor whose right of action is thus barred or suspended.

This assent may be manifested not only by the written or verbal acceptance of the creditor, but also, it is said, by actually receiving the benefit, or by claiming such benefit, or by taking legal measures to obtain it. Burrill on Assignments, ;340, 341, and cases cited.

It is very questionable, however, whether the mere receipt [214]*214of partial payment, from tbe assignee out of the trust fund,, where the terms of the assignment or of the statute do not expressly bind the creditor to delay suit, will bar the creditor from suing until the trust is terminated. Bank of Bellows Falls v. Deming, 17 Vermont (2 Washburn), 366. The bar, if any, must arise out of a contract or statutory inhibition express or implied. There is, confessedly, no express provision in the deed of assignment, nor in the statute regulating its administration, which prohibits suits against the assignor pending proceedings under it, and while an implica tion to restrain proceedings by creditors agaijist the property assigned would, if at all necessary, be reasonable and proper; such an implication, which-would also prevent the subjection of the subsequent earnings and acquisitions of the debtor, not embraced in the assignment, would be unreasonable and unjust. It would lead to great abuses, and might be resorted to for the mere purpose of protracting the collection of just debts, and securing immunity for months or years, while the debtor is engaged in lucrative and profitable operations, and perhaps able to liquidate all his liabilities.

“A legal and valid assignment” devotes all the property covered by it to the creditors presenting their claims in pursuance of the statute, which appropriation can not be disturbed noi varied by a dissatisfied creditor; but to give it a more extended operation, so as to protect, even temporarily, subsequently acquired property, would be productive of much mischief. The future earnings and acquisition's of insolvent debtors should be always open to their creditors. An enforced delay of a few months, or days even, may render a. subsequent suit profitless and unproductive.

The apprehended hardship of subjecting insolvent debtors to increased costs, consequent upon suits by creditors during, the progress of the assignment, is entitled to but little weight, and is inore than compensated by the power which it confers over their subsequent acquisitions. It may, after all, be safely committed to the self interest of the creditor to not increase, unnecessarily, the embarrassments of his insolv^it [215]*215debtor, and at tbe same time preserve bis claim in a condition to participate in a distribution of tbe property assigned.

We do not perceive anything in tbe act regulating tbe mode of administering assignments,” which conflicts, in any respect, with tbe views here expressed. It regulates tbe administration of tbe assets assigned, and points out the mode in which a participation therein may, and indeed must, be sought. If a creditor does not acquiesce, his claim, and his remedies thereon, still remain, save that he can not appropriate the assigned property to its payment, except in the manner and proportions therein prescribed. There is not, in the act, any express prohibition of independent suits by creditors, while proceedings under it are in progress, and for the reasons already assigned,, we think, such prohibition should not-be implied.

2d. It is claimed that the petition is substantially defective, and that even if the answer is not of itself a legal bar to the action, it is nevertheless good enough for such a petition.

The particular defect relied on, is, that the suit is brought in the name of a firm — Alcott & Horton — without averring the state of facts which, under the statute, authorizes the bringing of a suit in the name of a firm.

Section 1 of the act in aid of the law regulating suits by and against companies and partners ” (S. & C. Stat. 1188), enacts : “ That any company or association of persons formed for the purpose of carrying on any trade or business, or for the purpose of holding any species of property within the State of Ohio, and not incorporated as such, may sue or be sued in any of the courts of this state, by such usual or ordinary name as such company, partnership or association may have assumed to itself or be known by,” etc.

The petition, so far as relates to the character and capacity in which the plaintiffs sue, is in these words : “ The plaintiffs say that they are a firm doing business under the name and firm of Alcott & Horton.” The Christian names of the partners are not stated. Nor is it stated that they are a company formed for the purpose of carrying on any trade or business within the State of Ohio, nor that they are or were doing [216]*216business under that name within the state, and there is no averment from which such a state of facts can fairly be inferred.

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Cite This Page — Counsel Stack

Bluebook (online)
13 Ohio St. 210, 13 Ohio St. (N.S.) 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haskins-v-alcott-horton-ohio-1862.