Hax v. Acme Cement Plaster Co.

82 Mo. App. 447, 1900 Mo. App. LEXIS 263
CourtMissouri Court of Appeals
DecidedJanuary 8, 1900
StatusPublished
Cited by4 cases

This text of 82 Mo. App. 447 (Hax v. Acme Cement Plaster Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hax v. Acme Cement Plaster Co., 82 Mo. App. 447, 1900 Mo. App. LEXIS 263 (Mo. Ct. App. 1900).

Opinion

SMITH, P. J.

The Acme Cement Plaster Company— a corporation — was garnished on an execution which was issued, on a judgment in favor of Hax and other creditors against S. A. Walker.

The garnishee, in answer to the fifth interrogatory exhibited against him by the creditors, stated 'that, “the defendant, S. A. Walker, at the time of the service of the garnishment was and now is in the employment of the garnishee, receiving as compensation for his services a salary of four thousand dollars ($4,000) per 'annum, payable monthly in advance, and in addition thereto five (5) per cent of the net earnings of the garnishee; The defendant is a resident of St. Joseph, and is a married man and the head of a family. The garnishee has paid the fixed compensation payable monthly as aforesaid as it became due and payable to the said S. A. Walker, and there is nothing now due or owing to him on account thereof.

“The defendant at or about the time of his employment by the garnishee and long before the service of garnishment in this case assigned that portion of his compensation covered by the five (5) per cent of the net profits of the garnishee for value and in writing to Martha Walker, who presented the said assignment to the garnishee and demanded payment of the said portion of the compensation included therein, and the garnishee has since then paid that portion of said defendant’s compensation as it accrued and became due and payable to the said assignee, Martha Walker. This gai^iishee did not owe the said defendant anything on account of the compensation covered by said assignment at the time of the service of the garnishment, but afterwards on or about the twenty-second day of November, 1897, there became due to him on account thereof the sum of nine hundred and twelve dollars and fifty cents ($912.50), which sum on said day the garnishee paid by virtue of said assignment to the said Martha Walker, [451]*451and there is nothing now owing by the garnishee to the said defendant on any account whatever.”

The creditors, in their denial, controverted generally the answer of the garnishee, and then specially alleged the pretended assignment of the five per cent earnings of the garnishee was made, if made at all, -with the design and purpose, on the part of the defendant and Martha Walker, the assignee, of -hindering, delaying and defrauding the creditors tin the collection of their indebtedness against defendant, and of which fraudulent intent and purpose the garnishee had knowledge; and to that extent it colluded with defendant, and said assignee, to defraud the creditors of the defendant. The reply was a general denial.

Under our practice, the denial of the answer by the creditors stands in the place of the petition in an ordinary action at law. Bank v. Dillon, 75 Mo. 380; Bunker v. Hibler, 49 Mo. App. 536. The issue is not raised by the interrogatories and -answer of the garnishee, but by the denial of the answer and reply thereto. The interrogatories and. answer -are merely preliminary to the framing of the issue.

The denial in this case, in effect, admits the assignment but assails its validity on the ground of fraud and collusion. Bauer v. Wagner, 39 Mo. 385; Nelson v. Brodhack, 44 Mo. 596. The issue thus made was whether or not the assignment was fraudulent as to the creditors. The burden of proof was on the creditors. If no evidence was introduced to overthrow the answer of the garnishee, it was conclusive in his favor. Bunker v. Hibler, supra; Waples on Attach. & Gar. 376.

But whether -the assignment was admitted or not by the denial seems of no moment now, since it was introduced in evidence at the trial. The undisputed evidence disclosed that the defendant, at the time of the service of the garnishment, was, under -a previously made contract with the garnishee, receiving a salary of four thousand dollars per annum for his services, payable monthly in -advance, together with five [452]*452per cent commission of the net profits of the business of the garnishee, for the then current year which ended in November. It was further disclosed by the evidence that at the end of the year there was due the defendant, on account of said commission, the sum of $912.50.

The assignment already referred to recited that in consideration of the indebtedness of the defendant to the said Martha Walker — evidenced by a note in the sum of $40,000, dated March 1, 1890, due ten years after date, payable to H. T. Walker and by him assigned to the said Martha Walker and executed by the defendant and J. W. Walker — the defendant assigned to the said Martha Walker all claims and demands that he then had, or might at any time have between the date thereof — July 20, 1896 — and the first day of July, 1899, against the garnishee for money due, and for all sums of money and demands which at any time between the date thereof and July 1, 1899, might become due him for services as manager of the garnishee company, except the sum of $4,000 which the garnishee company had agreed' to pay defendant as a fixed and certain salary. It further recited that, the said Martha Walker was appointed as the attorney in fact of the defendant to collect said five per cent commission from the garnishee, receipt therefor, etc. There was an acceptance of the assignment by the garnishee indorsed thereon, dated July 20, 1896, and signed by W. A. P. McDonald* president. It further appears that the said sum of $912.50, the amount of the five per cent commissions, to which the defendant was entitled in November, 1897, under said agreement with the garnishee, was paid by said garnishee to the said Martha Walker.

There was no evidence adduced tending in the least to impeach the Iona fides of the indebtedness which constituted the consideration for the assignment. The integrity of the transaction between the defendant and the said Martha Walker and that between the defendant and garnishee was [453]*453impugned by no evidence that we have been able to find in the record. The answer of the garnishee was evidence in his favor, even in regard to all the affirmative facts stated therein by way of avoidance. Holton v. Railway, 50 Mo. 151; Walker v. Fairbanks, 55 Mo. App. 478. Hence it was incumbent on the creditors to prove that the assignment was fraudulent, in order to avoid its force 'and effect-.' It is undisputed that the assignment was made to secure a bona -fide debt due by the defendant to Mrs. Walker. The assignment is little more than an order of the defendant on the garnishee to pay to Mrs. Walker whatever amount of five per cent commissions that might annually become due the defendant, in part payment for his services as general manager. This order was accepted by the garnishee and there is nothing shown in respect thereto that in any way impairs its efficacy. The payment, so far as disclosed by the evidence, was in no wise fraudulent. The whole transaction was a bona fide preference, of which, under our law, no one has a right to complain.

Indeed, it would seem from the brief of the creditors that they do not so much rely upon fraud to avoid the 'assignment as they do upon the ground that it is vague, uncertain and in contravention of public policy. Whether or not the last of the two grounds upon which the validity of the assignment is questioned is covered by the issues made by the pleadings we need not stop to consider, since both parties, in their briefs, seem to have so regarded it.

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Bluebook (online)
82 Mo. App. 447, 1900 Mo. App. LEXIS 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hax-v-acme-cement-plaster-co-moctapp-1900.