Rogers v. Abbot

92 N.E. 472, 206 Mass. 270, 1910 Mass. LEXIS 796
CourtMassachusetts Supreme Judicial Court
DecidedJune 25, 1910
StatusPublished
Cited by24 cases

This text of 92 N.E. 472 (Rogers v. Abbot) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Abbot, 92 N.E. 472, 206 Mass. 270, 1910 Mass. LEXIS 796 (Mass. 1910).

Opinion

Loring, J.

This is an action against the sureties on a bond to dissolve an attachment. The attachment (which was dissolved) was made in an action brought by the Holmes and Blanchard Company on August 12, 1898, to recover “ the price of a machine sold by ” that company to the Philadelphia and Boston Face Brick Company. The defendant in the original action (in which the bond to dissolve was given) was defaulted, [272]*272and judgment against it in the sum of $901.56 was entered on November 7, 1904. That judgment has not been paid.

The writ in the case at bar was sued out on April 4, 1907. The declaration counted on the failure to pay the judgment of November 7, 1904, within thirty days after its date. The action was brought by the plaintiff in his own name as assignee of the Holmes and Blanchard Company (the obligee named in the bond) under an assignment dated March 14, 1905, made by the receiver of its property appointed by the United States District Court in bankruptcy proceedings.

The defendants’ first contention is that the claim sued on is not covered by this assignment. The assignment transferred to the plaintiff (inter alla) “ all . . . bills receivable ” of the Holmes and Blanchard Company. The claim on which the judgment against the Face Brick Company (the principal defendant in the action in which the bond to dissolve was given) was a debt due for the sale of a machine sold by the Holmes and Blanchard Company to the Face Brick Company. Such a debt is a bill receivable of the Holmes and Blanchard Company. The only doubt on the point arises from the fact that this claim had been reduced to judgment before the assignment. The explanation of the terms used in the assignment seems to be that neither the receiver of the Holmes and Blanchard Company (the assignor) nor the plaintiff (the assignee) knew that it had been reduced to judgment. This fact was testified to in terms and was not contradicted. We are of opinion that this bill receivable was covered by the assignment although it had been reduced to judgment.

The next objection set up is that the chose in action assigned was the bill receivable and that sued on is the bond to dissolve. But the bond to dissolve took the place of the lien acquired by the attachment on the property attached, and the lien acquired by the attachment was security for payment of the judgment recovered in the action to collect the bill receivable assigned to the plaintiff. Being security for the “ bill receivable ” assigned to the plaintiff it passed to him as an incident to the “ bill receivable,” under the familiar rule applied in cases like Morris v. Bacon, 123 Mass. 58; Commonwealth v. Globe Investment Co. 168 Mass. 80; French v. Hall, 198 Mass. 147. If the defendants had taken the objection that under these circumstances the [273]*273action could not be maintained in the plaintiff’s name as assignee because the chose in action sued on had not been assigned in writing as required by R. L. c. 173, § 4, the objection would have bad to be sustained. But that objection was not taken in any one of the thirty-nine rulings requested by the defendants.

The next objection taken by the defendants is that the receiver was not authorized to make this assignment. The receiver was in terms authorized to make an assignment of the bills receivable. This objection therefore resolves itself into the authority of the court to authorize the receiver to assign this bill receivable.

The defendants contend that there was no evidence of a formal transfer by the common law assignees to the receiver in bankruptcy and for that reason that this bill receivable did not pass under the assignment to the plaintiff. A general assignment for the benefit of creditors is in terms made an act of bankruptcy by U. S. St. 1898, c. 541, and is a fraud on the act (see § 3 (4)) and so void (see § 67 (e)). Of this there is no doubt, and it is recognized in Reddy v. Raymond, 194 Mass. 367, .cited by the defendants to the contrary. Title to all property which passed to common law assignees vests in the trustee by force of U. S. St. 1898, c. 541, § 70.

The next contention is that a receiver cannot be authorized to make, such a sale. The bankruptcy court can appoint receivers to take possession of all property the title to which would vest in the trustee, U. S. St. 1898, c. 541, § 2 (3), and may order a sale of the property in the hands of receivers, if it is perishable. The sale here in question was made on that ground. But it was afterwards confirmed by the court on a petition by the trustee. For that reason it is not necessary to state the grounds on which the property of this bankrupt taken as a whole was considered to be in the nature of perishable property.

This brings us to the exception to the ruling under which the judge

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Bluebook (online)
92 N.E. 472, 206 Mass. 270, 1910 Mass. LEXIS 796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-abbot-mass-1910.