Pritchett v. Pollock & Co.

82 Ala. 169
CourtSupreme Court of Alabama
DecidedDecember 15, 1886
StatusPublished
Cited by27 cases

This text of 82 Ala. 169 (Pritchett v. Pollock & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pritchett v. Pollock & Co., 82 Ala. 169 (Ala. 1886).

Opinion

STONE, C. J.

— There .does not appear to be any controversy as to the facts of this case. The witnesses are substantially agreed as to every material question. J. Pollock & Co. were attaching creditors of McCaskey & Eatcliff, who had been partners in merchandise. The amount'and bona fides of their claim are not disputed. It ante-dated the conveyance to Pritchett, after noticed. Pritchett interposed a claim to the property attached, and a trial at law ensued, called in our jurisprudence a “trial of the right of property.” There were verdict and judgment for the plaintiffs in attachment, and Pritchett, the claimant, takes this appeal.

McCaskey & Eatcliff, on January 7, 1886, executed a conveyance, in form a bill of sale, by which they conveyed to Pritchett all their stock of goods, wares and merchandise, of every kind and description, in the stores occupied by them in the town of Camden, and also their iron safe, together with all the notes, accounts, mortgages, claims, and demands of every kind due the said firm of McCaskey & Eatcliff, except such as had theretofore been transferred to [171]*171the firm of Robins, Wilson & Co., of the city of Mobile. The recited consideration of this conveyance was the sum of ten thousand two hundred and twenty-five 56-100 dollars, in hand paid by Daniel S. Pritchett — six thousand six ^hundred and twenty-five 56-100 dollars, indebtedness of McCaskey & Ratcliff to said Pritchett, and three thousand six hundred dollars in cash paid by said Pritchett to Mc-Caskey & Ratcliff. It is not disputed that this cash payment was made; and Prichett thereupon took possession of the property purchased.

The alleged indebtedness of six thousand six hundred and twenty-five 56-100 dollarssto Pritchett consisted of the following loans of money, with interest computed, and for which notes had been given in the firm name :

Note, October 23, 1884..........................$ 500.00
“ March 18, 1885.......................... 2,000.00
“ December 31, 1885....................... 1,000.00
(These payable to D. S. Pritchett.)
The following notes made by the firm, payable to J. C. Pritchett, but transferred to D. S. Pritchett:
Note, January 17, 1885..........................$ 545.50
“ December 31, 1885........................ 500.00
14,545.50
Interest, about............................ 200.00
$4,745.50
An individual note of Ratcliff to D. S. Pritchett, on which McCaskey was in no way liable, was put in as part consideration........................... 1,510.00
Interest on this about $235.
There was, also, a note given by McCaskey in his individual name, payable to D. S. Pritchett, dated December 3, 1885........................... 400.00
$6,655.50

It will be observed that, taking the items furnished in the testimony, and computing interest on them, the sum of them was then about two hundred and ninety dollars in excess of the six thousand six hundred and twenty-five dollars stated in the bill of sale. The result is, that the recited consideration of the bill of sale, as claimed in virtue of past indebtedness, is about eighteen hundred and eighty dollars in excess of the sum of the debts contracted in the firm name.

No testimony is offered tending to show that the firm was liable for, or in any way had the use of the fifteen hundred [172]*172and ten dollars, for which the Ratcliff note was given. The testimony disproves such use. As to the note given by Mc-Caskey for four hundred dollars, Pritchett testifies as follows: “On the 3d of December, 1885, he loaned John W. McCaskey $100.00, and took his note therefor,” M cCaskey’s testimony in regard to this transaction is as follows : “"Witness borrowed $100.00 from said Pritchett on the 3d of December, 1885, and gave his individual note to said Pritchett therefor; and which sum witness put into the business of said firm of McCaskey & Ratcliff.” This is all the testimony bearing on this item. It is insufficient to fasten it as a charge on the partnership, for the following-reasons : First, the loan was made to McCaskey, and his individual note taken for it, while for the other loans made, both before and after that time, the notes of the firm were taken. Second, the individual debt of McCaskey to the firm of McCaskey & Ratcliff was greater by near, two hundred and fifty dollars, than was the individual indebtedness of Ratcliff at the time the sale was made. This furnishes a reason why he should contribute to the funds of the then embarrassed firm, at least to the extent of his excess of indebtedness. Third, putting the money into the business does not necessarily imply that it was placed there as partnership effects, without any claim by McCaskey of an individual credit therefor. Had Pritchett sued the firm for this four hundred dollars, and offered in support of his claim only the testimony set forth in the transcript and copied above, it would have been insufficient to fasten a partnership liability on them. The legitimate consideration, then, which Pritchett paid in the purchase, was—

In past due indebtedness..................... $4,715.50

Cash at time of purchase....................... 3,600.00

Total........ $8,345.50

The value of things purchased was—

Stock of merchandise......................... 6,000.00

Solvent claims................................ 4,157.55

Collectible.................................. 432.98

Ten per cent, of bad claims, yet collectible........ 197.17

Total....................................10,787.70

Difference.................................... 2,442.20

We prefer, however, not to place our ruling on the insufficiency of the consideration.

Before, and at the time this sale was made, McCaskey <fc Ratcliff were insolvent, and Pritchett was informed of it. Each of them so testifies. The purchase by Pritchett was [173]*173proposed and made that he might become a preferred creditor, and thus save his debt. This, under our rulings, he had a clear right to do, provided he purchased át a reasonably fair price, and secured to the seller no pecuniary benefit, which the law itself would not secure to him. If, in securing his debt, he went beyond this boundary, and secured to the seller a pecuniary benefit beyond what the law itself would confer, this was a fraud. And the consequence of such fraud is, not alone to avoid the conveyance as to the benefit reserved: it vacates and annuls, for the benefit of creditors, the entire conveyance. — Lukins v. Aird, 6 Wall. 78; Crawford v. Kirksey, 55 Ala. 282; Sims v. Gaines, 64 Ala. 392; Lehman v. Kelly, 68 Ala. 192; Seaman v. Nolen, Ib. 463; Com. Bank v. Brewer, 71 Ala. 574; Proskauer v. People's Savings Bank, 77 Ala. 257; Shealy v. Edwards, 78 Ala. 176; Levy v. Williams, 79 Ala. 171.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Morton Hardware Co. v. Barranco
172 So. 109 (Supreme Court of Alabama, 1937)
Birmingham Trust & Savings Co. v. Shelton
163 So. 593 (Supreme Court of Alabama, 1935)
Wade v. Brantley & Crawley Const. Co.
161 So. 101 (Supreme Court of Alabama, 1935)
Woodson v. Bumpers
140 So. 766 (Supreme Court of Alabama, 1932)
Protective Life Ins. Co. v. Thomas
134 So. 488 (Supreme Court of Alabama, 1931)
Stollenwerck v. Fourth Nat. Bank
88 So. 659 (Supreme Court of Alabama, 1921)
McKenzie v. Minge
84 So. 475 (Alabama Court of Appeals, 1919)
Orr, Jackson & Co. v. Perry
81 So. 150 (Alabama Court of Appeals, 1919)
Manchuria S. S. Co. v. Harry G. G. Donald & Co.
77 So. 12 (Supreme Court of Alabama, 1917)
Chandler v. Johnston Lumber Co.
169 Ala. 495 (Supreme Court of Alabama, 1910)
Knox Co. v. Parker
52 So. 438 (Supreme Court of Alabama, 1910)
Metcalf v. Arnold
32 So. 763 (Supreme Court of Alabama, 1902)
Johnston v. Philadelphia Mortgage & Trust Co.
129 Ala. 515 (Supreme Court of Alabama, 1900)
Bienville Water Supply Co. v. City of Mobile
125 Ala. 178 (Supreme Court of Alabama, 1899)
Glass v. Meyer, Son & Co.
124 Ala. 332 (Supreme Court of Alabama, 1899)
Muskegon Valley Furniture Co. v. Phillips & Bros.
113 Ala. 314 (Supreme Court of Alabama, 1896)
Groetter, Weil & Co. v. Norman Bros.
107 Ala. 585 (Supreme Court of Alabama, 1894)
Teague, Barnett & Co. v. Lindsey
106 Ala. 266 (Supreme Court of Alabama, 1894)
Smith v. Kaufman
100 Ala. 408 (Supreme Court of Alabama, 1893)
Curran & Co. v. Olmstead & Scheuing
101 Ala. 692 (Supreme Court of Alabama, 1893)

Cite This Page — Counsel Stack

Bluebook (online)
82 Ala. 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pritchett-v-pollock-co-ala-1886.