Powles v. Dilley

9 Gill 222
CourtCourt of Appeals of Maryland
DecidedDecember 15, 1850
StatusPublished
Cited by14 cases

This text of 9 Gill 222 (Powles v. Dilley) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powles v. Dilley, 9 Gill 222 (Md. 1850).

Opinion

Frick, J.,

delivered the opinion of this court.

Barney Dilley, the infant son, and Benjamin R. Edwards, the son-in-law- of Joseph Dilley, the appellee, on the 11th of January, 1844, commenced business in the town of Cumber[227]*227land, under the name of Edwards and Dilley, and in the course of the autumn of that year, became indebted to the complainants and others, for goods purchased in the prosecution of their business.

They had originally obtained from the Merchants Fire Insurance Company of Baltimore, an insurance upon their stock in trade, to the amount of $3000, and at the expiration of the policy, on the 17th of February, 1845, Barney Dilley having in the meantime withdrawn from the concern, upon notice to the creditors, that being a minor he was not responsible for any of the business transactions of the firm, Edwards procured a renewal of the policy, and continued the business in his own name.

Very soon after, on the 13th of March, a fire broke out on the premises, by which the whole stock in trade was consumed; being considerably more than was covered by the insurance; and Edwards, then alone interested, proceeded to Baltimore with a view to adjust the loss with the insurance company, and confer with his creditors.

About this period, on the 5th of April, 1845, the present complainants filed in Baltimore county court a bill of complaint against Edwards and Dilley, and the Merchants Fire Insurance Company alleging the insolvency of the concern, and the intention of Ediourds to assign the policy of insurance, for the purpose of securing the claim of Joseph Dilley, his father-in-law, to the exclusion of the rest of his creditois, and as a proposed fraudulent preference of Dilley. The bill prayed for an injuncfion against the company, forbidding the settlement of the policy with either Edwards and Dilley, or Joseph Dilley, and for the appointment of a receiver to take possession of the effects of the concern, for the purpose of a ratable distribution of the proceeds among all the creditors.

The injunction was granted, and the case afterwards removed to the court of chancery, where upon the bill and answers, the injunction was dissolved. An appeal was taken to this court, and the chancellor’s order was here affirmed on the 13th of February, 1846.

[228]*228Immediately thereupon the complainants dismissed their bill, and on the 14th of February, (the next day.) filed a second bill on the equity side of Baltimore county court, in which they repeat substantially the averments of the former bill, with the exception that it is now charged that the assignment had been actually executed, and Joseph Dilley is made a party to the bill. They again pray an injunction against the payment of the money by the insurance company, and the appointment of a receiver for the same purpose of a ratable distribution of assets, as in the preceding bill.

This injunction was also granted, and upon removal of the case to the court of Chancery after answers filed, was there dissolved. Upon an appeal to this court, the order of the chancellor was again affirmed on the second of July, 1847.

A rule for further proceedings was then had, and on the 23d of December, 1847, the complainants filed a supplemental bill against Joseph Dilley and the Merchants Fire Insurance Company.

The bill states that they had recently obtained judgments against Edwards, (Barney Dilley having defeated them on the plea of minority,) and that he had eluded their executions by removing to Kent county, and being there pursued, had returned to Allegany county and applied for the benefit of the insolvent laws; that by collusion between Edwards and himself, Joseph Dilley had been appointed permanent trustee in fraud of complainants, who had no notice or knowledge of his appointment. That being charged with fraud, he was not a proper person to execute the trust. The bill then further charges, that any and every transfer of the policy or other assets, made by Edwards to Joseph Dilley, were made with a view and expectation on the part of Edwards of being and becoming an insolvent debtor, and with an intent to give to Dilley an undue and improper preference; and to hinder, delay, and defraud complainants of their just and lawful actions; and to receive benefit and advantage thereby, in fraud of the complainants and other creditors.

This bill prays the removal of Joseph Dilley from the trus[229]*229teeship, and also, that the assignment of the policy of insurance aud other transfers to the said Dilley, may be declared void, and a receiver appointed to take possession of the proceeds of the policy and other assets of the concern of Edwards and Dilley.

The answer of Joseph DiUty to this supplemental bill, admits that Edwards applied for the benefit of the insolvent laws in Allegany county, on the 14th of August, 1S4T; and that he was appointed permanent trustee by the court; but insists that he refused the acceptance of said trust, until pressed by his counsel to accept it, and that he has given bond for the discharge of his duty as trustee. He denies all irregularity, fraud aud collusion, and insists, that if his appointment was improper, Allegany county court alone has the power to remove him. He further denies that Edioards eluded the complainants’ executions, but avers that they were served, and security given for his appearance at the return day. He denies also that the assets will be wasted in his hands, &c.; and that the assignment of the policy to him was intended to give to him an undue and improper preference over other creditors; but that it was made in compliance with the original agreement set up in his former answer, and prays that it may be incorporated as part of this answer.

Edwards, in his answer, denies the allegation of fraud, occl He alleges that when the firm of Edwards and Dilley embarked in business, Joseph Dilley became surety for the payment of the stock of goods purchased by them, with the agreement that the goods should always be responsible for his endorsements, and that after the fire, Joseph Dilley insisted that the policy of insurance should be transferred as representing the goods; and that the transfer was made at the urgent request and importunity of Joseph Dilley, and with no view of applying for the benefit of the insolvent laws, or of giving to him an undue and improper preference, as he expected after the assignment to continue the business with the goods saved from the fire, the debts upon the books, and the aid of friends.

Barney Dilley, (discharged of all liabilities by his plea of [230]*230minority,) was examined upon leave, and swears that it was distinctly understood that Joseph Dilley was to be secured in some way by the stock. That it was spoken of when the firm began , and that they promised and fully intended to secure him. And his answer to the original bill is to the same purport.

The evidence of M. T. Evans, proves, that in April, the end of the month, or the beginning of May, 1845, after the fire, as attorney, he ,was employed by Dilley

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Bluebook (online)
9 Gill 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powles-v-dilley-md-1850.