Roach v. Brannon

57 Miss. 490
CourtMississippi Supreme Court
DecidedOctober 15, 1879
StatusPublished
Cited by17 cases

This text of 57 Miss. 490 (Roach v. Brannon) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roach v. Brannon, 57 Miss. 490 (Mich. 1879).

Opinion

Chalmers, J.,

delivered the opinion of the court.

The plaintiffs in error, who were also plaintiffs in the court below, sued out this writ of attachment against the defendant, who was surviving partner of W. J. Marett & Co., in a retail liquor saloon in the town of Holly Springs. The affidavit for the writ was based upon the grounds that the defendant had property, or rights in action, which he was concealing, and refused to apply to the payment of his debts, and that he had assigned or disposed of, or was about to assign or dispose of, his property, or rights in action, or some part thereof, with [497]*497intent to defraud bis creditors, or give an unfair preference to some of them, and that he had converted, or was about to convert, his property into money, or evidences of debt, with intent to place it beyond the reach of his creditors. The facts proved upon the trial, in support of the averments of the affidavit, were these: The defendant had written to the plaintiffs, asking for a composition of their demand, stating the impossibility of paying the debt due by his firm in full, and giving the value of the stock on hand as between twelve hundred and fourteen hundred dollars. The truth was that an invoice, taken by him the day before this letter was written, showed the prime cost of the stock on hand to be fourteen hundred and eighty-seven dollars. When called upon by the attorney of the plaintiffs to know how much he could or would pay, he refused to offer more than twenty-five cents on the dollar, though the firm assets would perhaps have paid fifty cents on the dollar; and he stated to the plaintiffs’ attorney that, if he rejected this proposition, and also refused to receive certain claims, which he offered to transfer in liquidation of the plaintiffs’ demand, his clients would never get a cent. This last statement is denied by him. He had applied to the corporate authorities of the town for a license to carry on in his own name the retail liquor business for a year, and confessed that he expected to pay for the privilege, the price of which was five hundred dollars, out of the receipts realized from daily sales of the firm’s stock on hand. He had permitted the widow and family of his deceased partner to live in part, for a period of a month, out of the receipts of the firm’s business accruing after the death of his partner. These are the facts which, it is claimed, authorized the issuance of the writ.

If we leave out of view the facts that the defendant was the surviving partner of an insolvent firm, that he was dealing with firm assets, and that the plaintiffs were firm creditors, and if we regard him as a private individual, negotiating with an individual creditor in relation to his own property, it is impossible to see that any of these facts come up to the allegations of the affidavit or the requirements of the statute. The letter written to the plaintiffs underestimated the value [498]*498of the goods on band., if we accept the prime cost as the crite-'non of their value ; but we know that it frequently happens that a remnant of a stock of goods fails to bring first cost, and even if we treat the letter as an intentional underestimate, there is no clause in the statute which makes an undervaluation of his property by a debtor, who is seeking a compromise with his creditors, a ground of attachment. It is shown that the goods were freely exhibited, after this letter was written, and before the attachment, to a clerk of the plaintiffs, who examined them, and expressed the opinion that they would not sell for more than half the invoice price. That he only offered to pay twenty-five cents on the dollar, when the assets were probably worth fifty, and that he stated, if he did so state, that the plaintiffs’ refusal to accept this, and their rejection of the proffered transfer of claims, would result in their getting nothing, does not come up to the allegation of the affidavit that he had property which he “ concealed, and unjustly refused to apply to the payment of his debts.” There must be both a concealment and a refusal to apply, and this implies an affirmative act of concealing, as well as a negative omission to pay. There was no secreting of anything, and we cannot predicate concealment of a mere failure to pay, though the debtor has ready money, and that money is not visible to the creditor. Money is never visible ordinarily, and so long as there is no attempt to secrete it, by clandestine removal or fictitious transfers or otherwise, and so long as it is kept and used as money ordinarily is, no ground of attachment is afforded. That he intended to re-embark in his own name in the business of a liquor dealer, and proposed to invest five hundred dollars in a license for that purpose, constituted no ground of attachment, though it was to be accomplished by a transmutation of property into money, and an investment of the latter in the license. A creditor cannot require his debtor to preserve the status of his estate, nor complain that he is about to change from one lawful pursuit to another. It might be that the investment of all his means in an invisible, intangible thing, like a liquor license, which has no practical pecuniary value, because neither transferable nor vendible under execution, would constitute ground of attachment, if [499]*499the purpose was simply to procure the license without availing of it. But where the purpose is to embark in an enterprise, all the materials and visible stock of which can be reached by the creditor, it amounts to nothing more than engaging in a new branch of business, and constitutes no ground of attachment. In this case, the debtor testified that his intention in procuring the license was to sell out the stock of liquors at retail, they being far more valuable in that way, and he being advised that he could not do this under the old license possessed by the firm. His object was to make the assets realize a larger fund for the firm creditors. Regarding him as dealing with his individual property, — and it is solely in this view that we are now considering the case, — it is quite evident that he did not subject himself to attachment by allowing the family of his deceased partner to be supported from the proceeds of the firm business. If the estate of the deceased partner was entitled to anything, his family •was receiving only their just dues ; and, if they were not, it amounted simply to a gratuity on the part of the defendant. However improper it may be for an insolvent person to give in charity that which he should appropriate to the payment of his debts, the fact that he does so has not been made in this State a ground of attachment.

But the defendant was not negotiating with an individual creditor, nor dealing with individual property. He was the surviving partner of an insolvent firm, and the plaintiffs were creditors of that firm. Two questions are presented by these facts: (1) Can an attachment be sued out against a surviving partner by a firm creditor? (2) If so, must such creditor bring himself within the letter of the attachment statutes and maintain his writ by showing a state of facts which would warrant an individual creditor in suing out the writ, or is it sufficient for him to show that the surviving partner has been faithless to the trust with which the law clothes him for the benefit of firm creditors, and has been guilty of conduct which the law regards as fraudulent, as to them, though admissible as to those to whom he is individually indebted?

We have no hesitation in answering the first question in the affirmative. We see no reason why an attachment may not be [500]

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Bluebook (online)
57 Miss. 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roach-v-brannon-miss-1879.