McKnight v. Taylor

42 U.S. 161, 11 L. Ed. 86, 1 How. 161, 1843 U.S. LEXIS 294
CourtSupreme Court of the United States
DecidedFebruary 28, 1843
StatusPublished
Cited by94 cases

This text of 42 U.S. 161 (McKnight v. Taylor) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKnight v. Taylor, 42 U.S. 161, 11 L. Ed. 86, 1 How. 161, 1843 U.S. LEXIS 294 (1843).

Opinion

Mr. Chief Justice TANEY

delivered the opinion of the court.

This is an appeal from the decree of. the- Circuit Court of the District ’ of Columbia, for the county of Alexandria, sitting in chancery.

It appears from the record, that the appellant Charles McKnight, by deed bearing date the 29th day of September, 1813, conveyed to Robert I. Taylor, certain real property described in the deed, situate in the town of Alexandria, upon trust, to permit the appellant to occupy the same, and to receive the rents and profits without account, until a sale should become necessary, under the terms of the deed; and if he, the said Charles McKnight, should not on :he 1st day of April, 1818, have paid the several creditors named in a schedule, annexed'to the deed, the debts thérein mentioned with interest, then the said Robert I. Taylor should, on notice of such. default from any one of the said creditors or his representatives, proceed to sell the said property, or so much thereof as might be necessary, for cash at public auction, after giving three weeks notice of the time and place of sale, by advertisement in any paper published in Alexandria, and after defraying the reasonable expenses of sale, discharge the aforesaid debts with all interest due thereon.

The bill in this case was filed in August, 1837, by Robert I. Taylor, the trustee above mentioned, ar-d after setting forth the deed of trust, proceeds to state that Thomas Janney and Co. (who are named as creditors in the schedule) had assigned the debt due to them, to Joseph Janney in trust for the payment of their creditors; and that Joseph Janney, under a provision in the deed of assignment, afterwards transferred the same to George Johnson, in trust for the same purpose; and that the complainant had been required by the said George Johnson, and by certain *164 other creditors named in- the schedule, (hut who are not named in the bill,) to sell the-premises, so as aforesaid conveyed to him in execution of the. trust; that the debts mentioned in the schedule were due from McKnight, the appellant, and John Stewart, who had been trading under the firm of McKnight and Stewart, and that no part of any of them had been paid. -The bill further states that before the execution of this deed, the-appellant' had, on the 30th of April, 1808., conveyed a part of the same premises to a certain Jacob Hoffman, in order to secure Thomas Janney, against his responsibility as endorser on two notes discounted at' the Bank of Alexandria and the Bank of Potomac; and that the said notes had' been long before paid, although .the property had not been re-conveyed' to the appellant: that McKnight was giving out that the debts in the schedule had been all paid, and threatened to withhold possession if the trustee-proceeded to sell 'under the deed, and that from these declarations of the appellant, and the outstanding legal title, tbe sale could not be made without injury to the interests of the parties concerned, without the aid of the Court of Chancery; and prays process- against the heirs of Hoffman, (he being dead,) and against McKnight and Stewart, and all of the creditors named in the schedule; and, among the rest, against George Johnson, in order that they may be compelled to appear and answr the several matters charged in the .bill. • A supplemental bill was afterwards filed, in order to make additional parties, and for other purposes; but in the view which the court take of this subject it is unnecessary to state its contents. The creditors secured by the'deed of trust are eleven in number, their respective claims varying in amount: the lowest being $85 72, and the highest-$1227 19. The trustee,-Robert I. Taylor, is himself one, and the debt due him stated to be $214.54.

To this bill Hugh-Smith, one of the creditors, whose debt was $15.1, answered, saying merely that his claim is still due.

James Carson, another of the creditors'" whose claim • was $85 72, answered and admitted that he had been paid.

The heirs of Hoffman also answered, and admitted, that the notes intended to be secured by the conveyance to their father, had been paid; and submit themselves to such decree as the court may deem just.

. The answer of the appellant, só far as it is material to set forth *165 its contents, statés that the claim of Thomas Janney and Co.; which was $1022 6-9, was due upon open account,, and that ¡thé respondent was entitled .to a deduction of considerably more than $300 for money overpaid by mistake on the settlement, of. a ■ former account, but that he cannot'find a memorandum in writing to establish it, which he knows did once exist; and that after the execution of the deed of trust he transferred to Thomas Janney, on account of this debt, the note of a certain Jonathan Mandeville, for $467-08, due'on the 20th of January, 1815, which, from what Janney himself afterwards told him, he believes to' have ■béen paid;-and in respect to this item, his answer is responsive to the bill. He also specifies several creditors whose, claims he states that'he 'has páid, and among them the trustee,. Robert I. Taylor, and he sets forth-the manner in which'he satisfied that debt. ' Some of the creditors mentioned in the schedule are not, however, named in his answer; and he mentions three whom he admits that he has not paid, and makes the sanie-admission as to the small balance which would be due to Thomas Janney and Co,, after deducting the credits claimed by him as above stated; but he does not admit that these debt's are yet due, and insists that there is every reason to believe that they were paid by his former partner, Stewart, who -was equally liable with himself-; or, if not paid, that it was owing to the negligence and laches of the creditor's in not proceeding against him; the respondent alleging that Stewart, after the dissolution of the partnership with him, removed to Martinsburg, in Virginia,'about the" year 1812, where he carried on a prosperous business until his death in 1825, and was fully able to pay these debts if the creditors had used proper diligence to recover them; and he relies upon the lapse of time as a good defence upon principles of equity against this proceeding.

There is a-general'replication to .this answer; and it áppears in evidence", that upon the dissolution of the partnership of McKn-ight and Stewart, in 1812, a notice of it was published in the newspapers, stating that EdcKnight was authorized to collect the debts and settle the business of the concern. And a witness was also examined on the part of tne complainant, who states,- • that from a perfect knowledge of the pecuniary situation of Stewart, from 1812, until his death, he knows that he was insolvent *166 when he removed from Alexandria to Martinsburg, and that he continued and died insolvent; that he had no property he could call his own, and out of which an old debt of $100 or $200 could have been made.

It also appears in evidence, that Thomas Janney and Co., on the 30th of April, 1823, assigned all their effects and claims to Joseph Janney, in trust to pay their debts. That by virtue of a provision contained .in this deed of assignment, Joseph Janney afterwards, on the 10th of August, 1829; renounced the further execution of the trust, and transferred all tire property and claims that remained .in his hands to George Johnson, in trust for the same purposes for which they had been conveyed to him.

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Bluebook (online)
42 U.S. 161, 11 L. Ed. 86, 1 How. 161, 1843 U.S. LEXIS 294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcknight-v-taylor-scotus-1843.