In re the Assignment of Cadwell's Bank

89 Iowa 533
CourtSupreme Court of Iowa
DecidedOctober 18, 1893
StatusPublished
Cited by5 cases

This text of 89 Iowa 533 (In re the Assignment of Cadwell's Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Assignment of Cadwell's Bank, 89 Iowa 533 (iowa 1893).

Opinion

Robinson, C. J.

On the ninth day of October, 1888, Phineas Cadwell and William C. Cadwell executed to Stephen King a general assignment for the benefit of their creditors. They had been engaged as co-partners in doing a banking business at Logan, in Harrison county, under the name of Cadwell’s Bank, and at Woodbine, in the same county, under the name of Boyer Valley Bank. The assignment included all partnership property, and the individual property of the partners not exempt from execution, and was duly acknowledged and recorded on the day of its date. King qualified as assignee, and on the twenty-ninth day of October, 1888, filed in the proper office an inventory and appraisement of the property transferred to him by the assignment, as follows: Of Phineas Cadwell, eighteen thousand, two hundred and twenty-seven dollars and seventy-one cents; of William C. Cadwell, ninety-five dollars; of Cadwell’s Bank, twenty-three thousand, three hundred and fifty-two dollars and ninety-three cents; of Boyer Valley Bank, eleven thousand, six hundred and ninety-three dollars and thirty-nine cents. On the first day of November, [536]*5361888, the first publication of the notice of the assignment was made by the assignee. On the fifth day of February, 1889, he filed his report, which included a list of all. persons who had claimed to be creditors of the individual assignors and of the partnership. The claims so made were as follows: Against the partnership to the amount of' seventy-three thousand, four hundred and forty-six dollars and ninety cents; against Phineas Oadwell to the amount of four thousand, three hundred and eighty-nine dollars and thirteen cents; and against William O. Oadwell to the amount of six hundred and seventy-three dollars and four cents. In the list of claims against Phineas Oadwell were one in favor of Stephen King, the assignee, for one thousand, one hundred and fifteen dollars and seven cents, one in favor of O. L. Hyde for one hundred and fifteen dollars, and one in favor of Mrs. J. A. Smith for three hundred and five dollars. The claim of Stephen King was for money he had been compelled to pay as surety on a bond given by the Cadwells to the treasurer of Harrison county to secure the payment of deposits which the treasurer should make in Cadwell’s Bank at Logan, and the claims of Hyde and Mrs. Smith were for money deposited in that bank.

On the sixth day of July, 1889, in vacation, one of the judges of the district court of Harrison county made an order addressed to the assignee, as follows: “It is hereby ordered that you make an equitable distribution of the money now in your hands belonging to the above named estate between the creditors thereof who have proved their claims entitling them thereto, as required by law; and it is further ordered that in making the above distribution you, as assignee, are at liberty, and are hereby authorized, to use and dispose of any notes in your possession belonging to said estate, at a sum not less than the face value thereof. ’’ The assignee thereupon paid the three claims [537]*537specified from funds realized from the separate property of Phineas Cadwell.

In September, 1889, the assignee asked an allowance for his services, and the sum of four hundred dollars was so allowed, not, however, as full compensation for the services rendered. In January, 1890; the assignee renewed his application for an allowance, stating that the reasonable value of his services from the date of the assignment to the first day of September, 1889, was the sum of one thousand, seven hundred and thirty-three dollars and sixty-seven cents.

On the twenty-eighth day of March, 1890, the assignee filed a report, showing that he had incurred an indebtedness to S. I. King in the sum of one hundred and five dollars, and to H. H. Roadifer in the.sum of thirty dollars, for services rendered by them as attorneys in a proceeding instituted for the removal of the assignee. On the next day the appellees filed objections to the,report, alleging that the payment of the claims of Hyde, Mrs. Smith and Stephen King from the assets of Phineas Cadwell was illegal; that the fees asked to be allowed in favor of S. I. King and Roadifer were not charges against the estate, but should be paid by Stephen King as an individual; and that the charge of the assignee for services is unreasonable, and excessive to the amount of one thousand dollars."

The district court found and adjudged that the claims of Hyde, Mrs. Smith, and Stephen King were in fact claims against the partnership estate of Cadwell’s bank; that they had never been filed with the clerk of the district court, and that the report of them so filed only purports to give the amount claimed, name of the claimant, and to state that the claim was against the individual estate of P. Cadwell, without setting forth the facts on which the claim is based; that the order of July 6,1889, was not an adjudication [538]*538of those claims, and did not direct the payment of them; that, at the time the order was made, neither the claim nor the report of the assignee was before the judge who made it. The objection to each of the claims was sustained, and it was ordered that the payment of each out of the estate of P. Cadwell was disapproved and disallowed, and the amount of the claims was charged against the assignee, in favor of the estate of P. Cadwell, but without prejudice to the right of the assignee to present to the court his claim as one for trust funds. The court sustained in part the objections to the claim for compensation made by the assignee, but allowed him one thousand, one hundred dollars in addition to the four' hundred dollars theretofore paid, as compensation to January 1, 1891. It also sustained the objection to the fees claimed for Attorneys King and .Roadifer on the ground that they were not chargeable against the estate of the Cadwells. It is from these findings, and the rulings and the judgment, that the assignee appeals.

1- áfrifenelt^of creditors: ex- • oeptions to resignee: jurisI. There is some contention between the parties to this proceeding in regard to its true character, the appellant claiming that it is in equity, while the appellees contend that it is at . ,-t . . .. . law. There is nothing m its nature, nor in the relief demanded, to require the exercise of the equitable jurisdiction of the court, and it will, therefore, be treated as at law.

____ re_ m°eͰÍRat^sentiai. II. It appears from the reports of the assignee that the Cadwells are insolvent. All claims filed against Phineas Cadwell alone have been paid, is liable for the unpaid claims which are just demands against the partnership, and the property in the hands of the assignee is not sufficient to pay them. The appellees are creditors of the partnership, but, since its assets are inadequate to pay the partnership debts, they are interested [539]*539in the 'individual assets of each partner, and would *be prejudiced by the payment in full therefrom of all the claims which should properly be treated as claims against the partnership, and as entitled to no priority over those of the appellees against the individual property of either partner. Section 2121 of the Code requires the court in cases of this kind to render such judgment “as shall be just.” It would certainly be unjust to permit Hyde, King, and Mrs. Smith to be paid in full from the individual assets of Phineas Cadwell, and compel the appellees to accept but a part of their claims, since the claims of all these parties were for liabilities incurred by the partnership.

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Bluebook (online)
89 Iowa 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-assignment-of-cadwells-bank-iowa-1893.