Solinsky v. Lincoln Savings Bank

85 Tenn. 368
Tennessee Supreme Court·Decided February 1, 1887·Published·Cited by 11 cases

Opinion

Lurton, J.

L. Lipman, a merchant owing debts amounting- to about $15,000, made a deed of assignment of his stock of goods and his book accounts to IT. Solinsky, as trustee. He secured in this deed all of his creditors equally. Certain of his creditors sued out and levied attachments upon this stock of merchandise, a few hours in [370] advance of the acknowledgment and registration of the deed 'of trust. A number of others sued out and levied attachments a few hours after the registration of the deed to Solinsky, and after his qualification as trustee. The pleadings make a controversy between Solinsky, as trustee under the deed of assignment, and the attaching creditors. The original bill was filed by Solinsky, as trustee, and Lipman, the assigning debtor, against the attaching creditors, and this bill enjoined the prosecution of the attachment suits, and this bill, together with the answer and cross-bill and an original bill filed by the attaching creditors, present issues upon which the validity of the deed of assignment depends, and upon which the validity and effect of the several attachments dejaend.

It will be unnecessary to further state the pleadings; the facts necessary to the determination of the several questions presented by them will appear in the subsequent parts of this opinion. The facts proven abundantly establish the charge that Lipman was, and had been for some time, fraudulently disposing of his property with the intent to hinder and defeat his creditors.

The deed of assignment secures, among the other claims secured therein, a debt of fl,200, stated to be due to Solinsky, the trustee. The cross-bill, and original attack this debt as colorable. The proof overwhelmingly establishes this charge. Its fictitious character is made manifest. The attaching creditors, in their ci’oss-bill, charge that So[371] linsky had aided and abetted Lipman in the fraudulent sales, transfers, and concealments made just prior to the general assignment. , That Lipman had fraudulently transferred to Solinsky himself a considerable amount of property, and a decree is sought against him for such property or its value. The proof shows much complicity upon the part of Solinsky in the fraudulent transactions of Lip-man; and it is positively shown that about fourteen cases of boots and shoes, purchased by Lip-man at Nashville, were never taken by the latter from the depot at Fayetteville, but were by the clerks of Lipman re-marked and re-shipped to one 0. Shinky, at Wales Station, Tenn. This latter individual, instead of claiming or receiving the goods, simply re-marked them at the depot at Wales Station to Solinsky, at Pulaski, where the latter had a store. These goods are shown to have been received by Solinsky, and their value is shown to be about $400. It is true that Solinsky claims that these goods were sent to him as a pai’t payment upon a pretended indebtedness due to him by Lipman. The effort to prove such an indebtedness has wholly failed, unless it be as to $250 security debt claimed to have been paid by Solinsky for Lipman. But the proof as to this is not satisfactory. But these goods were claimed to have been paid and credited, not upon this - security debt, but upon a note for $700. No note is produced, on the contrary, when Solinsky is called on to produce such note, he claims after the as[372] signment to have assigned it to one Bajotsky. The latter has not filed it as a claim, and he does not testify in the cause. "We are satisfied there was no debt due, either at the time of this mysterious shipment of shoes or at the time of the making of the deed. These goods have not been attached, and they perhaps could not be identified. It is insisted that no decree can be granted for the produce of the sale of the merchandise, or for the value. The statement in the case of Tubbs v. Williams, 7 Hum., 367, to the effect that under the statute of frauds the creditor of ■ the fraudulent vendor or donor could only teach the specific property sold or conveyed, and could not recover its value or proceeds from the fraudulent vendee or donee, is not the law, and never has been the law. It was dictum in the case in which it was used. In the subsequent case of Marsh v. Powell, Thompson’s Tennessee Cases, this language was expressly commented on and distinctly overruled. Prior to the last case referred to this language had been limited to actions at law. Richards v. Ewing, 11 Hum., 332.

"When a fraudulent vendee has so concealed or disposed of the property that creditors cannot reach or identify it, the creditor may, in equity at least, recover the proceeds or value thereof. The Chancellor gave a decree for the value of these goods directly traced to Solinsky, and we affirm his action.

The attachments levied before the registration of the deed of assignment were properly sued out [373] and lawfully levied, and are entitled to priority of payment in the order of their levy. That the creditors suing out these attachments had reason to believe at the time that a general assignment was being prepared will not operate to prevent their levying. They had lawful grounds for attachment in the previous fraudulent conduct of Lipman, regardless as to whether the general assignment he was supposed to be making was or was not a further fraudulent scheme. So long as no valid conveyance by Lipman was of record, his creditors had a right to pursue their legal remedies. The objection that their levies were made in the night-time, and that entrance into the storehouse where the merchandise was stored was obtained by raising a window or forcing an outer door, is not tenable. The maxim that “a man’s house is his castle” only extends to his dwelling-house ; therefore a store-house or ware-room or barn or out-house, not connected with the dwelling-house, may be broken open in order to levy an execution or attachment. Swayne’s Case, Smith’s Leading Cases, Vol. I., side-page 188.

Spencer, Chief Justice, in delivering the opinion of the Court in the case of Haggerty v. Wilbur, 16 Johns., 288, said:

“There can be no doubt that the Sheriff had authority to break open the store and seize the goods. The privilege which the law allows to a man’s habitation, and which precludes the Sheriff from entering unless the outer door be open, either [374] to arrest the party or to take liis goods on execution, does not extend to a store or barn disconnected with the dwelling-house and forming no part of the curtilage.”

The Chancellor was in error in holding these levies invalid because of the breaking into the store-house.

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Solinsky v. Lincoln Savings Bank, 85 Tenn. 368 (Tenn. 1887).

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