Lookout Bank v. Noe

5 S.W. 433, 86 Tenn. 21
CourtTennessee Supreme Court
DecidedOctober 4, 1887
StatusPublished
Cited by16 cases

This text of 5 S.W. 433 (Lookout Bank v. Noe) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lookout Bank v. Noe, 5 S.W. 433, 86 Tenn. 21 (Tenn. 1887).

Opinion

Caldwell, J.

This attachment bill was hied by some of the creditors of S. B. Noe & Co., impeaching for fraud in law and fraud 'in fact a certain deed of assignment,' executed by them on the [23]*2325th of May, 1885, and seeking' to subject the property therein named to the payment of debts against said firm.

The Chancellor heard the cause finally upon voluminous pleadings and proof, and adjudged the assignment to be “ fraudulent in law, and null and void,” and granted the other relief sought in the bill.

S. B. Roe & Co., their assignee, and numerous creditors, who claim benefits under the assignment, have appealed, and seek a reversal of that decree.

The first contention made before this Court, on behalf of appellants; briefly stated, is: That the Chancellor erred in holding the assignment void for want of compliance with' the general assignment law, as embodied in Chapter 121 of the Act of 1881; the assignment being in fact partial, as now insisted, and not general, and for that reason not subject to the requirements of that Act.

The instrument in question does not in terms declare itself to be a general assignment; but, that it was so intended by the makers, 'is very (dear from its language and the manner of its execution.

It purports to assign and transfer to John Es-sary, Esq., as trustee, or assignee, “ a stock of goods, merchandise, hardware, cutlery,’ shoes and boots, and various articles of produce and merchandise, more particularly described and set °out in an inventory herewith filed as part of this assignment, and marked Exhibit Ro. 1, • * * * together [24]*24with the debts, notes, accounts, and other claims due said firm, more particularly set out and described in an inventory made part of this assignment, and marked Exhibit No. 2.” Then follows a statement that the goods, etc., are at the place of business of the assignors, which is given, and that their debts, etc., grew out of that business.

All their creditors — those named, and those not named, if any.— are expressly secured, and by the terms of the instrument are to receive payment pro rata. The inventories, referred to in the assignment, are made out in the minutest manner, reciting in their caption that they are parts of the principal paper, and marked as therein stated.

These three papers are severally signed and acknowledged by each member of the firm, and filed for registration, and registered, all on the same day, viz.: May 25th, 1885. On the next day one member of the firm swore, or attempted to swear, to each of the inventories.

Thus it appears unmistakably from the face of these three papers, which are to be taken as one instrument, that the assignors were attempting to make a general assignment, as contemplated by the Act of 1881, Chapter 121, the fourth, section of which requires that a sworn inventory of the debt- or’s property be annexed to every general assignment.

That this requirement was in the minds of the assignors becomes the more manifest when it is remembered that such a thing as a sworn inventory, [25]*25in connection with an assignment for the benefit of creditors, was unknown 'to the law and to the practice in this State prior to the passage of that Act.

Besides this conclusion, drawn from the face of the instrument itself, all parties have committed themselves, by their pleadings, to the theory that it was by the assignors intended to be a general assignment.

Complainants in their bill call it “ a paper, purporting to be a general assignment,” and attack it because not executed in good faith, and for other reasons. The assignors, answering, “ insist that said assignment was made bona fide, for the purpose of securing to their creditors, all alike, the benefit of all their assets.” A lai’ge number of the creditors adopt this answer as their own, and several others, answering for themselves, say they “have been informed that S. B. Eoe & Co. have made a general assignment, as stated in the bill” — all insisting that it is in substantial, if not in exact, compliance with the provisions of the general assignment act.

It is true, as now contended for him, that the assignee does not in his answer anywhere call the instrument a general assignment, and that he refers to it simply as an assignment; but it is- equally true that he regarded it as a general assignment, for in his answer he claimed that all the property of the assignors, whether named in the assignment or not, “ passed to this respondent under the provisions of Chapter 121 of the Acts of 1881,” etc.

[26]*26Then it is perfectly manifest from admissions in the pleadings, and from the face of the' instrument itself, that it was intended as a general assignment, made in an attempt to comply with the Act of 1881, by which its validity must be tested.

The bill contains no allegation against the form of the assignment itself, but it attacks the verification of the inventories upon several grounds.

The fourth section of the Act provides : “ That the debtor making a general assignment shall annex thereto a full and complete inventory, or schedule, under oath, of all his property of every description.” This provision is mandatory, and faithful compliance therewith is absolutely necessary to the validity of the assignment. Hill, Fontaine § Co. v. Alexander Bros., 16 Lea, 496; Rosenbaum, v. Moller, 85 Tenn. (1 Pickle), 653.

The attempted affidavits in this cause are endorsed upon the inventories in these words:

“ Subscribed and sworn to before me, May 26th, 1885, by R. H. Turley.
(Signed.) “ J. N. (Goldman, Clerk.”

The firm of S. B. Noe & Co., the assignors, was composed of two members, S. JB. Noe and R. IL Turley, and, as appears from the endorsement just given, Turley alone swore, or attempted to swear, to the inventories. Eor this reason it is alleged in the bill and urged in argument that the verification is invalid. The position is, that both Noe and Turley should have sworn to the invern [27]*27tories, and tbat nothing short of that meets the requirement of the law.

"We cannot concur in this view. It is not contended that the statute in terms requires that all the members of a firm making a general assignment shall swear to the inventories annexed; but it is said that this is necessary to a proper assurance that the inventories include all the property of the assignors. This, we think, cannot be so, when all the property conveyed or owned belongs to the copartnership, as seems to be the case here; for the oath of the two partners could not give the instrument any greater verity upon its face than that of one of them affords, the presumption being that they have equal information relative to the firm’s assets, and are equally advised of the contents of the inventories. In such case the sanction of the oath of one of them meets the requirement of the law, if sufficient in other regards.

It is next insisted, on behalf of complainants, that the verification of the inventories is not 'sufficient either in form or substance, being, as already quoted, only this:

“ Subscribed and sworn to before me, May 26th, 1885, by R. H. Turley.
(Signed.) “J. N. G-oldmaN, Glerk.”

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Cite This Page — Counsel Stack

Bluebook (online)
5 S.W. 433, 86 Tenn. 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lookout-bank-v-noe-tenn-1887.