Meyer & Raapke v. Stone

21 Neb. 717
CourtNebraska Supreme Court
DecidedJanuary 15, 1887
StatusPublished

This text of 21 Neb. 717 (Meyer & Raapke v. Stone) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meyer & Raapke v. Stone, 21 Neb. 717 (Neb. 1887).

Opinion

Maxwell, Ch. J.

In December, 1883, the appellees filed in the district court of ^Saline county a petition against Joseph D. Stone, [718]*718appellant, alleging that plaintiffs were a co-partnership, and creditors of one Francis M. Woodruff, and exhibit their petition for their own benefit, as well as such other creditors of said Woodruff as' shall come in under their bill and contribute to the expenses of the suit. Appellees also allege that September 6th, 1882, Woodruff was, and still is, indebted to appellees for goods, wares, and merchandise in the sum of $435.80, and interest due on a certain judgment rendered by the county court of Saline county, and that.the indebtedness existed long before July 6th, 1882, and that on the 25th day of September, 1882, execution was issued on the judgment and placed in a constable’s hands for service, who afterwards returned the execution Avhoily unsatisfied, and that a transcript was filed in the district court of Saline county, May 11th, 1883; that long before July 6th, 1882, Woodruff was insolvent, •and was threatened by his creditors, and made known these facts to Joseph D. Stone, appellant, and arranged with Stone that in case Woodruff’s creditors attempted to compel payment of their claims, Woodruff should transfer his stock of .goods, merchandise, etc., to'Stone, to avoid payment of his ■debts, and to delay, hinder, and defraud his creditors; that Stone, as an inducement, promised Woodruff that he would take and hold and sell the goods, collect the accounts, and ■apply the proceeds to the payment of a small amount due to him (Stone), and account to Woodruff for the balance, •and pay the same to Woodruff, or his creditors with whom settlement cotild be made for a small percentage of their ■claims; that he would hold the property, subject to Wood-ruff’s directions, for above purposes; that on the 6th day of July, 1882, one of Woodruff’s creditors threatened Woodruff with legal proceedings to compel payment of the debt due from him, and that thereupon, in pursuance of their previous bargain, Woodruff made a pretended sale of his goods, wares, and merchandise, fixtures, book accounts, •etc., to Stone, for the sole purpose of hindering, delaying, [719]*719and defrauding Woodruff’s creditors; that on the 6th day of July, 1882, Woodruff was insolvent, which fact was known to Stone; that Woodruff had no property aside from the goods and property so transferred to Stone, which were of the value of at least $4,500; that the debts of Wood-ruff were equal to the same amount, and that Stone knew of that fact. Notwithstanding, Stone claims to have bought the entire stock, etc., for $2,250, of which $340 he claims was due to Kim and $250 were claims.of creditors of Wood-ruff held by Stone for collection, and these two amounts were treated as payment pro tanto on said purchase price, viz., $2,250; that there then remained $1,660 of the purchase price, for which appellant claims he gave four notes to Woodruff in four equal payments at six, twelve, eighteen, and twenty-four months without interest; and appellees deny that Stone held claims in his own favor, or in favor of any one else against Woodruff, and alleges that the transfer was made on account of the inability of Wood-ruff to pay his debts, and to defraud his creditors and secure a preference in favor of appellant and for the creditors whose claims appellant held for collection; that neither appellant’s claim or either of those he held for collection were for laborer’s wages, and the purchase from Woodruff was not in good faith, and was made by both parties to enable Woodruff to avoid payment of his debts.

The petition also charges that Stone refuses to account for the goods and accounts to the creditors, but claims he absolutely purchased the same and again sold them to one Jacob Starkey, about July 27th,-1882, for a full and adequate consideration, and that Starkey is selling and disposing of said property as his own, and that the sale by Stone to Starkey was made prior to appellees’ judgment; that between July 6th and July 27th, 1882, Stone sold a large amount of the goods and converted them to his own use, and has been since July 6th, 1882, collecting the accounts, and is acting in utter disregard of the rights of the creditors [720]*720of Woodruff, and in violation of the trust under which he secured the property from Woodruff, by reason of which appellees suffer irreparable injury; that on July 6th, 1882, and for a long time prior, Woodruff was indebted to R. L. McDonald &Co. in the sum of $124, and on the 17th day of August, 1882, R. L. McDonald & Co. obtained a judgment against Woodruff for $125.50 and costs, $3.25, and on September 18th, 1882, caused an execution to be issued thereon which was duly returned October 16th, 1882, unsatisfied ; that on the 1st day of February, 1883, R. L. McDonald & Co. sold to appellees said judgment; that a transcript thereof was filed in the district court of Saline county, May 10th, 1883; no part of said judgment has ever been paid; that on July 6th, 1882, and prior, Woodruff was indebted to Silver Link Lodge No. 69, of the Independent Order of Odd Fellows, in the sum of $100, and that Stone, in getting in possession of the property and books of Woodruff, promised as a part consideration to pay said debt out of the funds which should be collected from said accounts; that he has collected of the accounts more than sufficient to pay 'the debt, but has never paid it or any part of it; that on the 9th day of April, 1883, said lodge procured a judgment against Woodruff for the debt 'and costs, taxed at $135, and on the same day procured to be issued an execution on the judgment; that May 5th, 1883, the execution was returned wholly unsatisfied; that on April 10th, 1883, said lodge sold said judgment to appellees, who filed a transcript of the same in the district court of Saline county on the 11th day of May, 1883; that there is due appellees on the judgments aforesaid the sum of $730, and seven per cent interest from December 1st, 1883, and pray that Stone may be held liable and treated as a trustee for the benefit of appellees, as creditors of Woodruff, in respect to the property received from Woodruff; that an' accounting may be had of the value of the goods and accounts, whether realized on or not by Slcnc, and that [721]*721Stone be required to pay to appellees on their judgments the value of the same; that the sale from Woodruff to Stone be declared to have been made in bad faith, and that Stone took the same only as trustee for the creditors of Wood-ruff, exclusive of Stone, and that the sale be declared null and void.

Stone, in his answer, denies the indebtedness of Woodruff and the several judgments and executions against him; denies the insolvency of Woodruff, his inability to pay his debts, and of all knowledge that Woodruff was threatened with judicial process to compel him to pay his debts; denies that he ever entered into an agreement with Wood-ruff to take his goods, hold, and sell them, in trust for Woodruff or for any creditor of Woodriiff, and denies thathe ever agreed in any way to assist Woodruff in effecting settlement with his creditors; denies he ever agreed to hold any property subject to Woodruff’s directions; and alleges that on the 6th day of July, 1882,.

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Bluebook (online)
21 Neb. 717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyer-raapke-v-stone-neb-1887.