Kirkland, Chase & Co. v. Brune

31 Va. 126
CourtSupreme Court of Virginia
DecidedNovember 28, 1878
StatusPublished

This text of 31 Va. 126 (Kirkland, Chase & Co. v. Brune) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirkland, Chase & Co. v. Brune, 31 Va. 126 (Va. 1878).

Opinion

Christian, J.,

delivered the opinion of the court.

The point of controversy in this case arises between the attaching creditors, Kirkland, Chase & Co., and the appellee, Bruñe, who claims to be the assignee of a chose in action. The solution of the question raised by the pleadings and evidence in the cause depends upon the true construction to be given to those provisions of the registry laws contained in the fourth, fifth and sixth sections of ch. 114, Code of 1873, p. 897, and which, so far as they relate to the question under consideration, are as follows:

§ 4. Any contract in writing made in respect to real estate or goods and chattels, in consideration of marriage, or made for the conveyance or sale of real estate, or a term therein of more than five years, shall, from the time it is duly admitted to record, be as against creditors and purchasers as valid as if the contract was a deed conveying the estate or interest embraced in the contract.

• § 5. Every such contract, every deed conveying any such estate or term, and every deed of gift, or deed of trust, or mortgage, conveying real estate or goods and chattels, shall be void as to creditors and subsequent purchasers for valuable consideration without notice, until and except from the time that it is duly admitted to record in the county or corporation wherein the property embraced in such contract or deed may be. * * * * *

§ 6. notwithstanding any such writing shall be duly admitted to record in one. county or corporation, wherein there is real estate or goods or chattels, it shall nevertheless be void as to such creditors and purchasers in respect to other real estate or goods or chattels without the same, until it is duly admitted to [128]*128record in the county or corporation wherein such other real estate or goods or chattels may be.

These are the only sections of the act necessary now to be considered and construed in fixing the rights of the parties in this case.

It is proper and convenient, first, however, to give a brief statement of such of the facts disclosed by the record as are necessary to a proper understanding of the claims of the contesting parties. It seems that Kirkland, Chase & Co. instituted their suit by way of foreign attachment in the corporation court of Dan-ville, against "William II. Bruñe, and the said Bruñe trading as F. "W. Bruñe & Sons, for the sum of $28,000, with interest thereon from February 1st, 1872. An attachment was issued directing the sergeant of the city of Danville to attach the effects and estate of said Bruñe and Bruñe & Sons in Danville, or any estate or debts due him in the hands of or under the control of the Danville Manufacturing Company, or their trustee, Harrison Robertson. The sergeant levied upon the property of said company, and delivered copies of process to Robertson, trustee, and Voss, president of the company. All this was done on the 14th day of February, 1872, at 10J o’clock A. M., as shown by the sergeant’s return.

It further appears that some time in May, 1866, the Danville Manufacturing Company, which had' been doing a very extensive business, became insolvent and conveyed to Harrison Robertson large and valuable property, consisting of real estate, water-power, machinery, fixtures, stock of manufactured goods, money in the hands of its treasurer, bonds, open accounts, debts, choses in action, and indeed all its property, real, personal and mixed, in action or possession, and where-ever situate or found. This conveyance was made for the benefit of the numerous creditors of said company. [129]*129Among those creditors, and perhaps the largest, was the firm of John T. Barry & Co., of the city of Baltimore. The trustee, Bobertson, had in execution the trusts created by said deed, and in accordance with its provisions, sold a considerable portion of the trust property and distributed the proceeds among the creditors. There was still, however, a large portion of the property unsold and a large part of the claim of Barry & Co. still unpaid.

On the 1st of June, 1871, Barry sold and transferred for value received this claim, being the balance: due him from the Danville Manufacturing Company,, to William H. Bruñe. The writing transferring this; claim by Barry to Bruñe was recorded in the clerk’s; ofiice of the circuit court of the town of Danville on the 9th day of February, 1872. This was the debt . which it ivas sought to reach by the attachment sued out by Kirkland, Chase & Co.

But it further appears that on the 13th February, 1872, Bruñe made a deed of trust for the benefit of his creditors, by .which he conveyed to Whitridge, trustee, “ all his estate and property, real, personal and mixed, and all claims and debts due to him and to the firm of F. W. Bruñe & Sons,” the deed containing only certain exceptions of wearing apparel and personal effects, portraits, See. This deed was recorded in Baltimore on the 16tli February. It does not appear ever to have been recorded in Danville. It was not acknowledged by Bruñe until between 12 and 3 o’clock on the 14th February. It will be observed that in this deed of trust the claim or debt transferred from Barry to Bruñe is not mentioned eo nomine. But it appears that on the same day on which the deed was written, to-wit: on the 13th Feb[130]*130ruary, 1872, the following paper was signed and sealed by Bruñe, and immediately sent by mail to Danville:

To H. Robertson, Esq., trustee, &c., &c., Danville, Va.:

Sir—I hereby, for value received, assign and transfer to Horatio L. Whitridge, of this city,.trustee for the benefit of my creditors and of the creditors of my firm of F. W. Bruñe & Sons, of this city, equally, all right, interest and claim in and to the claim of John S. Barry & Co. against the Danville Manufacturing Company, at Danville, Virginia, which was assigned to me by said Barry in May or June in the year 1871.

In witness whereof I have hereunto set my hand and seal at Baltimore, Maryland, on this the 13th day of February, A. D. 1872.

William II. Bruñe, [Seal.]

This paper was received by Bobertson, to whom it was addressed, by due course of mail, on the morning of the 15th February, about 10 o’clock A. M., as shown by endorsement made on the envelope containing it by said Bobertson.

How, it is under this special assignment, executed on the 13th of February, 1872, that Whitridge, the trustee for the creditors of Bruñe, claims the debt due from the Danville Manufacturing Company to Barry, and which had been assigned to Bruñe; while the appellants claim this same debt by virtue of their attachment, levied on the 11th February, 1872. These conflicting claims can only be determined by the construction to be given to the registry law above referred to.

If the transfer or assignment of a mere chose in action comes within the purview of the statute, then any instrument creating such transfer or assignment must be recorded to give it validity against creditors, and not being [131]*131recorded in Danville, the attaching creditors must prevail against the trustee of Bruñe. '

But if the assignment of Brune’s claim, which he chased from Barry, and which was a mere right to assert Barry’s claim”, whatever it was, against the Danville Manufacturing Compauy, and which is in its very nature a mere chose in action,

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Bluebook (online)
31 Va. 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirkland-chase-co-v-brune-va-1878.