Mather v. McMillan

19 N.W. 440, 60 Wis. 546, 1884 Wisc. LEXIS 152
CourtWisconsin Supreme Court
DecidedMay 15, 1884
StatusPublished
Cited by5 cases

This text of 19 N.W. 440 (Mather v. McMillan) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mather v. McMillan, 19 N.W. 440, 60 Wis. 546, 1884 Wisc. LEXIS 152 (Wis. 1884).

Opinion

OrtoN, J.

The complaint alleges that the firm, of T. P. Wither & Co., on the loth day of September, 1883, made an assignment of their property, both real and personal, to the plaintiff, for the benefit of their creditors, and all the conditions required by the statute were complied with to make the assignment valid on that day. On the 25th day of the same month, the assignors completed and made a correct inventory of their assets and list of their creditors, as required by law, and on the same day such inventory and list were duly verified by their affidavit, and certified to be correct by the said plaintiff, as such assignee. The complaint further alleges that the “plaintiff and said-assignors, by a mistake in computing time, verily believed the 26th day of September, 1883, to be the tenth day after the execution of such assignment; and on the 26th day of September, 1883, mistaken^ believing the same to be the tenth day after the execution of such assignment, filed in the office of the clerk of the circuit court the aforesaid inventory of assets and list of creditors, such day being the eleventh day after the execution of such assignment,” and that due notice was given to the creditors, etc.; and then the complaint alleges that the defendant, as sheriff of Monroe county, under and by virtue of certain warrants of attachment, seized and levied upon certain personal property of the said assignors, which passed to the plaintiff by said assignment, and detains the same.

[548]*548To this complaint the defendant filed a general demurrer, which was sustained by the court, and the plaintiff appeals from the order sustaining the same.

The only question raised by the demurrer, and argued by the learned counsel in this court, is, Did the failure to file the inventory and list of creditors within ten days after the execution of the assignment render void the assignment as to creditors? Whether such failure rendered the assignment void as to the parties to it, is not the question in this case, for the complaint placed the defendant in the position of representing creditors. The only question in relation to the assignment in which the defendant is at all interested, is whether the title of the property has passed, by virtue of the assignment, beyond the reach of the attachments. The assignment may be valid as between the parties, and as to all the creditors of the assignor who may not seek to avoid it for the reason that the inventory and list were not filed in time. These attaching creditors, represented by the sheriff, in the seizure of the property so. assigned to satisfy their demands as still being the property of the assignor, disaffirm and repudiate the assignment on the ground that the assignment is void as to them and all other creditors who contest it. It is only in respect to this attitude of the case, im which the complaint has placed it, that the statute must be examined and construed. The language to be construed is in sec. 1097, R. S.: “ and a failure to make and file such inventory and list shall render such assignment void.” The inventory and list, in this case, were not filed within ten daj's after the execution of the assignment, but were filed on the eleventh day.

The learned counsel of the respondent insists that this question has been decided in three late cases in this court, viz.: Harwell v. Gundry, 52 Wis., 268; Steinlein v. Halstead, 52 Wis., 289; Haben v. Harshaw, 59 Wis., 403.

All that was said by Mr. Justice LyoN in the first case, [549]*549touching this question, is: “Section 169Y creates conditions subsequent, which did not exist before the section was enacted, to wit, the filing of the inventory and list within a specified time. A failure to file either of these may defeat the title of the assignee. The fact that a breach of either of these conditions may work a forfeiture of title, and thus defeat the trusts created by the assignment, calls for a reasonably liberal construction of the saving clause in the statute, in favor of the validity of the assignment.” That saving clause referred to is that no mistake therein [in the inventory or list] shall invalidate such assignment or affect the right of any creditor.” ' It was because the failure to file such inventory and list “within the specified time,” or ten days of the execution of the assignment, would defeat the title of the assignee, or cause a forfeiture of such title, that this court, in that case, felt called upon to put such a liberal construction upon the above saving clause as to embrace a mistake of law of the assignor, in supposing his exemption embraced forty acres instead of one fourth of an acre of land, and in omitting the forty acres less the one fourth of an acre from the inventory. •Such a strict construction of th& forfeiture clause is made the reason for such a liberal construction of the saving clause. Why is not this an authoritative and legitimate construction of this forfeiture clause? It was within the reason and necessity of such a construction of the saving clause, and therefore not obiter. It was the only reason for the liberal construction of the saving clause, and therefore necessary to such a construction and such a decision. If such reason fail, the decision in respect to the saving clause will fail also. But, aside from the force of stare decisis by reason of that case, we see no good reason for changing such a construction of that forfeiture clause.

What was said in the second of the abové cases, pertinent to this question, was: “In respect to these requirements [550]*550[the making and filing a correct inventory and list, and having affixed thereto the certificate of the assignee that the same is correct, etc.], the essential thing to be done, or ‘ the substance of the thing provided for,’ is the making and filing of a correct inventory of assets and list of creditors within ten days after the execution of the assignment. The creditors are concerned and interested in this alone, and it is essential that both the inventory and list should be as perfect and correct as possible, and be filed within the time, for the information of all concerned.” In that case the inventory and list were duly filed within the ten days, but without the certificate of the assignee, and the point was that, the certificate being a necessary part of such inventory and list, and essential to them, the inventory and list could not be said to have been filed within ten days; i. e., that without such certificate they were not the inventory and list, or perfected as required by the statute, and could not, therefore, have been filed as such within the ten days. It was held that the certificate and verification were not constituent parts of the inventory and list, but extraneous and distinct from them, and the mere certificate or verification of them, and therefore not embraced in the language, “a failure to make and file such inventory and list shall render such assignment void.” In other words, and more briefly, that the certificate and verification were not filed within ten days, and therefore the assignment was void, because they were necessary to make the inventory and list which were so filed. It would seem that this very question was involved in that case, and necessary to its decision.

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Cite This Page — Counsel Stack

Bluebook (online)
19 N.W. 440, 60 Wis. 546, 1884 Wisc. LEXIS 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mather-v-mcmillan-wis-1884.