Morrison v. Mayer

29 N.W. 698, 63 Mich. 238, 1886 Mich. LEXIS 656
CourtMichigan Supreme Court
DecidedOctober 21, 1886
StatusPublished
Cited by3 cases

This text of 29 N.W. 698 (Morrison v. Mayer) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morrison v. Mayer, 29 N.W. 698, 63 Mich. 238, 1886 Mich. LEXIS 656 (Mich. 1886).

Opinion

Sherwood, J.

This suit was brought by complainants, a firm resident of New York, as creditors of Jacob Kraemer, who had made an assignment, to remove the assignee for fraud, to have a receiver appointed in his place, and secure a faithful enforcement of the trust created by the assignment, and a proper distribution of the property and proceeds when recovered, to the end that complainants, may obtain under the trust created what equitably and justly belongs to them.

The defendant Jacob Kraemer, during the year 1882, and for a long time before, was engaged in the business of dealer in dry goods and general merchandising in the city of Negaunee, in the county of Marquette. He also had a branch store in the same business, in the village of Crystal Falls, in said county. On the fourth day of November of that year he was indebted to the complainants in the sum of $678.61, and at [241]*241the same time was carrying a stock worth from $30,000 to $40.000, and owned a lot and store building worth $4,000 more. The indebtedness to complainants was not due for sixty days after the last-mentioned date.

’ On the twenty-sixth of December, 1882, Jacob Kraemer, being indebted to the complainants and other creditors to the amount of about $40,000, made a mortgage to the defendant Charles Kraemer, on the store and lot, for $4,000 (Charles was his brother), and another to Adams & Foley, on the same property, for $2,000. He also, about the same time, executed four chattel mortgages upon his stocks of goods, as follows: The first to H. E. Pearse, a private banker in Negaunee, and one of the defendants, for $5,000; the second to Mayer, Engel & Co., of Chicago, creditors, for $3,573.75; the third to Charles J. Frank, for $1,800; and the fourth to Theodore Kauders, of New York, for $2,573.

On the second day of January, 1883, Jacob Kraemer made & general assignment for the benefit of all his creditors to said Herman E. Pearse.

Mr. Pearse accepted the trust. The' assets assigned consisted of the stock of goods in the store at Negaunee, appraised at $23,650; the store building, valued at $6,000; the stock at Crystal Falls, appraised at $8,034.04; and a quantity of goods in the hands of merchants at Ishpeming, then for sale for the assignor, valued at about $301.15, — amounting in-all to about $38,000. There were also outstanding accounts, good, doubtful, and bad, to the amount $5,784.37, making a total of assets amounting to nearly $44,000.

The mortgage indebtedness was claimed at this time by the defendants to appear upon the face of the instrument, and amounted to about $18,000, thus leaving a balance of assets over indebtedness to the amount of $26,000.

With the exception of the $301.15, all these assets went into the possession and control of the assignee after the-assignment was made.

[242]*242The assignee claims to have put one Luzerne Frost into the store, who made sale of the goods at retail until about the first of March, 1883, realizing on the sale thus made $8,000. He further claims that at this time the stock had become so reduced that the sales at the store scarcely paid expenses.

About this time Mayer, under the mortgage to Mayer, Engel & Co., for the purpose of foreclosing the same, advertised the goods remaining for sale, but, for some reason, no ■sale was made under the mortgage, but Mayer consented to a transfer of the stock by the assignee, at private sale, at the sum of $4,050. This sale was made by the assignee, and Mayer himself became the purchaser. The assignee subsequently sold the entire lot of accounts remaining for $150.

Mayer, on the same or following day, sold the entire stock of goods to.the defendant Charles Kraemer; Jacob Kraemer making this purchase for Charles, who lived in Milwaukee.

' Jacob Kraemer, after the last sale of the goods, as agent of ■Charles, commenced, as he claims, merchandising and selling goods in Negaunee, purchasing new goods as needed, and carrying on the business the-same as before the assignment.

Thus the assets of the trust estate were all disposed of, and •as the assignee informed creditors soon thereafter, for the .sum of about $12,000; that the real estate was worth no more -than the mortgages on it called for; that he was going to pay up the chattel mortgages, and there would be nothing left for •the unsecured creditors.

During all this time the real estate had not been disposed ,of. Jacob had remained in the store, and, to a greater or less extent, was interested in the business.

The unsecured claims at this time amounted to about $37,000.

July 30, 1884, the complainants’ claim remaining unpaid, and after the announcement by the assignee that there was no estate of the insolvent left with which to pay it, they brought suit therefor, and obtained judgment in the circuit court for the county of Marquette for the sum of $698.61.

[243]*243On the twenty-third day of December following, the complainants filed a bill of complaint in this cause, praying for the relief first above specified. Jacob H. Kraemer, Charles Kraemer, and Herman E. Pearse only were at first made parties.

On the twenty-ninth day of June, 1885, a supplemental bill was filed by complainants against thirteen other defendants, ■among whom was Nathan Mayer, and charging that, since filing the first bill, the last-named defendants, except Anderson, have instituted five attachment suits against the goods and lands of Charles Kraemer, being the same goods assigned to Pearse, and praying that said defendants may be enjoined from further prosecuting proceedings against said goods, and that the receiver to be appointed be directed to take charge of all the goods of the insolvent estate, and make sale of the same under the direction of the court, and that the liens under the pretended.levies may be declared fraudulent.

Two amendments to the prayers of these bills were subsequently allowed, to enable complainants to obtain all the relief that the evidence in the case would entitle them to.

All the defendants have been brought in by process, or have appeared voluntarily.

The bills were taken as confessed by Pearse, the assignee.

The case was heard before Judge Grant, in the Marquette circuit, upon the bills and answers, and proofs taken in open-court ; and after due deliberation, and having seen and heard all the witnesses, he made a decree substantially in accordance with the prayer of complainants’ bill, so far as relates to Jacob Kraemer, Charles Kraemer, Herman E. Pearse, and Nathan Mayer, and as to the other defendants the bills were dismissed.

Nathan Mayer alone appeals. '

In reviewing this case we have endeavored to give all the testimony its true position, and have indulged all the presumptions raised by the law in favor of these defendants, [244]*244but we bare been unable to see any grounds upon which Nathan Mayer can make good his positions on the defense.

On the sixth day of July, 1885, the assignee, Herman E. Pearse, was removed, and John Q. Adams, of Negaunee, was duly appointed receiver of the insolvent estate.

July 20, 1885, the circuit judge, at the request of the defendants, and upon their depositing $2,000 with the register of the court to satisfy the complainants’ and other like claims, made an order dissolving the injunction.

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Bluebook (online)
29 N.W. 698, 63 Mich. 238, 1886 Mich. LEXIS 656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morrison-v-mayer-mich-1886.