J. Walter Thompson Co. v. Whitehed

185 Ill. 454
CourtIllinois Supreme Court
DecidedApril 17, 1900
StatusPublished
Cited by21 cases

This text of 185 Ill. 454 (J. Walter Thompson Co. v. Whitehed) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. Walter Thompson Co. v. Whitehed, 185 Ill. 454 (Ill. 1900).

Opinion

Mr. Justice Boggs

delivered the opinion of the court:

The appellant company urges the chancellor erred in admitting in evidence, over its objections, proof of the enactments of the General Assembly of the State of North Dakota in relation to trusts and assignments. The appellant here was successful in the trial below and was appellee in the Appellate Court. It did not assign cross-errors on the record in the Appellate Court, and cannot be allowed to assign as for error in this court any ruling of the chancellor to which it made no objection in the Appellate Court. Newell v. Sass, 142 Ill. 104.

It was clearly proven the appellee assignee secured the possession of the goods in controversy and placed them in storage with the said Morgan Storage and Warehouse Company. This is not controverted. But appellant contends it was established by certain letters written by the appellee assignee to the storage company that said appellee abandoned all right or claim of possession or dominion over the goods, and did not claim the goods were in his possession at the time it caused the attachment writ to be levied. We have examined these letters and considered the statements therein contained, together with certain telegrams and other facts and circumstances disclosed by the evidence bearing on the point. These letters and telegrams were addressed to the Morgan Storage and Warehouse Company, and, with the exception of one of the letters, related solely to a controversy between the appellee, as assignee, and the said Cushman Bros. & Co., who had asserted and were asserting a right to the possession of the goods as consignees, and had no reference whatever to any claim of the appellant company. The letter written after the levy of the attachment, was written in reply to notice given by the storage company that an attachment had been levied on the goods. The statements contained therein are, in substance, that the appellee’s view is he should not defend the attachment suit but should require the storage company to pay him for the goods, but that he will refer the whole matter to his attorney. It does not appear the appellant company had any knowledge of any of these letters or telegrams when the attachment suit was brought or that its course was in any manner aSected or controlled by them. It appeared from the proof on the point, the appellee assignee at all times claimed the ownership of the goods and the right to the possession thereof, and his intention to invoke all necessary legal remedies to protect his possession, or to recover the value of the goods if deprived of their possession. We think it clearly appeared from the proofs the possession of the goods by the storage company at the time the attachment writ was issued was the possession of the appellee assignee.

The question for decision then is, did the appellant company, a corporation organized under the laws of the State of New Jersey, by means of the attachment writ issued under the laws of this State, and the levy thereof on the goods in this State in the possession of the appellee as assignee, he being a resident of the State of North Dakota, obtain a lien on the goods superior to the right of the appellee as such assignee?

The appellant insists it appears from the enactments of the law-making power of the State of North Dakota offered in evidence, common law or voluntary assignments for the benefit of creditors are not permitted, but that debtors desiring to make assignments for the benefit of creditors do so under the provisions of the code adopted by that State, governing, as appellant contends, the entire question of such assignments. The North Dakota code to which appellant refers applies only to a debtor whose aggregate indebtedness amounts to $500, and who takes advantage of the act for the “purpose of obtaining a discharge from his debts.” It is in the nature of a bankruptcy act, having the effect to relieve the debtor of further liability to respond to his creditors, and is not available to debtors who do not owe at least $500 in the aggregate. The assignment is not made by the debtor, but by the clerk of the court to an assignee selected by the creditors. The filing of the petition in the district court is apparently the only voluntary act required of the debtor. Such a proceeding is a statutory one as distinguished from a voluntary assignment. We do not regard this enactment as affecting the right of a debtor resident in North Dakota to execute a common law deed of assignment for the benefit of his creditors, leaving him still liable to answer all demands not discharged in full out of the assigned estate. That code has no reference to a debtor who owes less than $500, nor to any debtor other than those who voluntarily invoke it in order to be discharged as to all their debts. We would not impute to the State of North Dakota the intention to require a debtor residing in that State to apply, under that statute, to be relieved from any and all obligations to his creditors, and to deny to such debtor the common law right to convey his property to an assignee for the benefit of his creditors, he also remaining liable to them. It was not proven common law assignments are expressly prohibited by the laws of North Dakota. This code does not prohibit such assignments directly or by implication. The right to make an assignment existed at the common law, and is to be regarded as existing in each of the States of the Union unless shown to have been changed ór abrogated by statute. The deed of assignment in question conveyed all the property of the debtor for the benefit of all of his creditors, without distinction ór preference. In that respect it is not antagonistic to the policy of our laws. Our statute respecting voluntary assignments does not create the right to make such an assignment, but only places restrictions- on the exercise of the common law right possessed by the debtor to so dispose of his property. (Hanchett v. Waterbury, 115 Ill. 220; Union Trust Co. v. Trumbull, 137 id. 146; Howe v. Warren, 154 id. 227.) The assignment to the appellee was not a statutory one, but a voluntary common law assignment on the part of the debtor. It was valid by the lex loci, and will be carried into effect here as against a creditor non-resident of this State who has levied a writ of attachment on property in the possession of the assignee under the authority of such assignment. Heyer v. Alexander, 108 Ill. 385, May v. First Nat. Bank, 122 id. 551, and Townsend v. Coxe, 151 id. 62, discuss the doctrine here involved and in principle support the conclusion here announced. See, also, 3 Am. & Eng. Ency. of Law, 571, 572.

Rhawn v. Pearce, 110 Ill. 350, did not involve the question here presented. In that case a firm resident in Illinois was indebted to one Landenberger, a resident of the State of Pennsylvania. An attachment writ was issued in this State at the instance of a foreign creditor of Landenberger, and the Illinois debtor firm was garnisheed and made answer admitting the indebtedness. Trustees appointed under the provisions of the statutes of Pennsylvania, with authority to receive the property of Landenberger and administer the same for the benefit of his creditors, interpleaded. It was held the fund was in Illinois and was subject to the remedies provided by our laws for the collection of debts by the process of garnishment, and that the attaching creditor secured prior right thereto. In the case at bar the subject matter of the litigation is personal property -which the foreign assignee had reduced to possession.

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Bluebook (online)
185 Ill. 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-walter-thompson-co-v-whitehed-ill-1900.