Sorrell v. Vance

102 Ala. 207
Supreme Court of Alabama·Decided November 15, 1893·Published·Cited by 4 cases

Opinion

HEAD, J.

Section 3545, Code of 1886, provides, that, “A creditor, having obtained a judgment at law upon which execution has issued and been returned ‘no property found,’ or a creditor without a lien or-judgment, may, in the court of chancery of the district in which the judgment debtor resides, or in the court of chancery of the district in which the judgment was rendered, file a bill for the discovery of the assets of the debtor subject to the payment of debts; and the debtor must answer on oath, and disclose all property, real or personal, in which he may have, or may claim, an interest, legal - or equitable ; all moneys, effects, or choses in action, in which he may have, or may claim, an interest, legal or equitable, where such property, effects, or choses in action, in which he has, or may claim, an interest, legal or equitable, and where such moneys, effects or choses in action may be found.” Section 3547 provides, that, ‘‘If from the answer it appears that the defendant has property, real or personal, or an interest in property, real or personal, subject to the payment of debts; or has moneys, effects, or choses in action, or an interest in moneys, effects, or choses in action, subject to the payment of debts,_ whether such property, moneys, effects, or choses in action, be within or without the 'State, the court, in term time or in vacation, must make all such orders or decrees as may be necessary and proper to reach and subject such property, moneys, effects, or choses in action, and for that purpose may appoint a receiver with authority to demand, sue for and recover, or otherwise to reduce to possession such property, moneys, effects, or choses in action; and may require the judgment debtor to make to such receiver all conveyances, assignments, or transfers, which may be necessary and proper to enable hiin to receive, or to sue for and recover such property.”

The appellees, Vance & Kirby, obtained judgment in the the court of law, on the 26 day of January, 1893, against the appellants, Sorrell, Hickman, Phil[210] lips and Hestor, on a .debt contracted by them, as a .,partnership,.under the name of Ellis Hickman & Co. ;-Execution issued on this judgment, and was returned “No property found.” On the • 3d day ,of February, 1893, appellees filed in the office of the probate judge of-the proper county a certificate of the. judgment, in pursuance of the act of the General Assembly .of Alabama, ,. approved-February 29,1889, (Acts 1888-89,-p. 60), providing for the creation of judgment liens upon the prop* erty .of defendants; but the same was not registered until the 8th day of February, 1893. The bill is filed for, discovery of assets under septions 3545 and -3547. of ..'the-Code above copied. There are allegations touching the concealment of. partnership assets by the firm of Ellis Hickman & Co., .and individual assets -by specified individual members of that firm. Thus, it is alleged-that ■.[‘Ellis Hickman &Co.- own property in-the .way of notes, , accounts, and- other, debts owing, to, them, which they are collecting as fast as possible, and, fraudulently concealing- and keeping from your orators and. their other . creditors.” It is. also alleged that on or about- February ...6, 18.93, they sold, at.,one sale, to one Conway their , -stock of goods worth about $1,800 for about $1,500, for the purpose, on .their part, of defrauding their creditors,.by converting their goods into money, and concealing. the .proceeds ;,and. that Ellis Hickman received, the said proceeds,, and he .and Hestor are hiding them, out, together with all ¡other,assets of the firm. It is alleged that complainants are not informed whether Conway, the pur.chaser,..participated in this fraudulent intent or not. ■ It .is alleged nex;t that Sorrell owned real estate •'Subject to • this debt which, on January 16-, 1893., in, anticipation of . the recovery .of complainants’ judgment, and to defraud them,, he conveyed by mortgage, to secure a recited loan of $950 — the full value of the land — to his brother, G. ■,,W:<Sorr.ell.; -.and that if he, in fact, received this money, ..he. fraudulently conceals and withholds it from com-.plainants. The same averment is made in reference to G..-W. Sorrell’s participation in this fraud, as in. the c'ase. of Conway. Sorrell, the debtor, owns no other individual property. Complainants allege that -they know of no'property owned by Phillips subject to their- demand ;' but they allege,' generally, .that among all the respondents there is sufficient property hid out, subject to' the [211] payment of their demand, to pay it, if it can be discovered and subjected ; and that they have no property, so subject, which is not hid out and fraudulently withheld from ' the payment of the debt; that by the methods of conveyance referred to, and fraudulent concealment of proceeds and other property of Ellis Hickman & Co., and of the partners thereof, and of Win. M. Sorrell,-and the insolvency of Phillips, complainants do not know and can not find out upon what property their judgment lien operates. The bill prays, in terms ¡ for the specific relief authorized by the sections of the Code above copied, and for general relief. ■ ' ■

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Sorrell v. Vance, 102 Ala. 207 (Ala. 1893).

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