McIlhenny Co. v. Todd

9 S.W. 445, 71 Tex. 400, 1888 Tex. LEXIS 1157
CourtTexas Supreme Court
DecidedOctober 16, 1888
DocketNo. 6011
StatusPublished
Cited by14 cases

This text of 9 S.W. 445 (McIlhenny Co. v. Todd) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McIlhenny Co. v. Todd, 9 S.W. 445, 71 Tex. 400, 1888 Tex. LEXIS 1157 (Tex. 1888).

Opinion

Acker, Presiding Judge.

There being no appearance here

for appellees, we regard appellant’s brief as a proper presentation of the case. (Rule 40, Supreme Court Rules.)

Appellant brought this suit August 31, 1886, against appellees G. W. Todd, Henry H. Todd, Louis Bream and D. Doole. [402]*402The petition alleges that on the twenty-fourth of August, 1880, G. W. Todd, being then indebted to appellants in the sum of four hundred and sixty-three dollars and seven cents, made an assignment of all his property, except such as was exempt from forced sale, for the benefit of such of his creditors as would consent to accept their proportional share of his estate and discharge him; that by the deed of assignment Henry H. Todd and Louis Bream were appointed assignees; that the assignees qualified, took possession of the estate, and began the execution of the trust; that the property belonging to the estate, of the value of about eighteen thousand dollars, was received by the assignees Todd and Bream; that appellant was named in the list of creditors attached to the deed of assignment, said list showing the indebtedness of the assignor to be about ten thousand dollars; that the assignees executed bond as such in the sum of one thousand dollars, with D. Doole and H. Nicholas as sureties; that appellant accepted under the assignment and received from the assignees the following amounts, which were credited on his claim: April 11, 1881, eighteen dollars and thirty-six cents; September 26, 1881, fifty-four dollars; that on the tenth day of August, 1882, Henry H. Todd, as assignee, conveyed by deed to G. W. Todd, the assignor, all of the real estate conveyed to the assignees, together with all of the personal assets belonging to the assigned estate which had not been collected or disposed of by the assignees, which deed was afterward, on the thirtieth day of January, 1886, signed and acknowledged by the other assignee, Louis Bream; that this deed is fraudulent, without consideration and void; that the assignees have abandoned the trust, and have not, since the tenth day of August, 1882, exercised any control over the assets of the assigned estate; that the assignees have never made any report of the property that came into their hands, nor any report of the disposition they made of the same; that the assignees failed to distribute the assets of the estate among the creditors thereof; that of the personal property and notes and accounts that came into their hands, the assignees, by sale and collections, realized the sum of twelve thousand dollars; that appellant’s account has never been paid, except the credits mentioned; that Nicholas, one of the sureties on the assignees’ bond, is a non resident of the State and is insolvent.

The prayer is for the removal of the assignees and appoint[403]*403ment of others to execute the trust, for the cancelation of the deed made by the assignees to the assignor; that the property be sold and the creditors’ claims paid, and in the event it should appear that the property of the estate has been sold by the assignee and the proceeds received by them, then for judgment against the assignees and their bondsmen for the amount due appellant and other creditors to the extent of money in the hands of the assignees; for one thousand dollars attorney’s fee to be taxed as cost. And in the event the appellant should be mistaken in the relief sought, or asked for the wrong relief, or not sufficient relief, then for such relief as appellant and other creditors may be entitled to.

To this petition appellees answered by general demurrer, -special exception setting up the statute of limitation, and exception and plea to the jurisdiction of the court upon the ground that appellant’s claim was not sufficient in amount to give th© court jurisdiction, all of which were sustained by the court, and judgment entered dismissing the suit.

The correctness of this judgment is questioned by appellant, and the question is presented here by proper assignments of error.

The prayer of the petition is very comprehensive, and seeks a variety of relief. But relief can not be granted upon th© prayer, beyond what is authorized by the allegations of the petition. Under a prayer like this the court could have granted such relief as the case made by the allegations of the petition demanded, and refused to grant so much of the relief prayed for as was not authorized by the petition.

It is obvious that the primary object of the suit was the removal of the assignees, and the appointment of others to per. form the trust in the interest of all creditors who had accepted the benefit of the assignment, and shown themselves entitled to participate in the distribution of the assigned estate. It appears from the allegations of the petition that the assignees were not only guilty of- the most flagrant laches, but also guilty of willful perversion of the trust and misapplication of the trust estate.

Upon the execution of the deed of assignment, the title to all properv owned by the assignor, not exempt from forced sale, passed from the assignor, and upon the qualification of the assignee it vested in them for the purposes of the trust. In accepting the trust, they assumed to execute it according to [404]*404the terms and conditions prescribed by law governing the administration of an insolvent’s estate in the hands of assignee. By the provisions of that law they are required to collect the-assets, convert them into money and tó distribute the money ratably amongst such creditors of the assignor as have, in compliance with the requirements of law, proven themselves-entitled to receive it. Having done this, it then devolves upon the assignees to make their report to the proper court showing assets received by them and the disposition made of assets so received. If this report is satisfactory to the court and is approved the assignees are then in condition to ask, and are entitled to receive, their discharge. They can not divest themselves of their fiduciary character nor relieve themselves of responsibility as assignees by abandoning the trust estate, nor by conveying it to another. Until they are relieved of the position and consequent responsibilities of assignees by resignation, removal or discharge by order of the proper court, the statute of limitation does not run in their favor as against a creditor of the assignor who has shown himself entitled, under the provisions of the statute, to the benefits of the assignment.

Section 14 of the act of 1879, in relation to assignments for the benefit of creditors, General Laws, page 60, provides that, “if any assignee becomes unsuitable to perform the trust, refuses or neglects so to do, or mismanages the property, the county judge, or judge of the district court, may, upon the application of the assignor, or one or more of the creditors, upon reasonable notice to all parties interested, by publication or otherwise as such judge may direct, remove such assignee, and in case of vacancy, by death or otherwise, shall appoint another in his place who shall have the same powers and be subject to the same liabilities as the original assignee.”

This statute expressly gives the right to “one or more” of the creditors to make the application for the removal of the assignee, and the statute does not make the right, in any way, dependent upon the amount of the claim due to the creditor making the application.

It was held by this court, in Blum v.

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Cite This Page — Counsel Stack

Bluebook (online)
9 S.W. 445, 71 Tex. 400, 1888 Tex. LEXIS 1157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcilhenny-co-v-todd-tex-1888.