Stanley v. Robbins

36 Vt. 422
CourtSupreme Court of Vermont
DecidedNovember 15, 1863
StatusPublished
Cited by10 cases

This text of 36 Vt. 422 (Stanley v. Robbins) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanley v. Robbins, 36 Vt. 422 (Vt. 1863).

Opinion

Peck, J.

The plaintiff claims under a lease from E. B. Stanley to him, dated April 1st, 1856, for three years. The defendant, as deputy sheriff, justifies under an execution against E. B. Stanley, the lessor, by virtue of which he took the property in February, 1858.

1. It is insisted by the defendant’s counsel, that the lease is void under the statutes relating to assignment. The Act of 1843 is in terms limited to general assignments. The Act of 1852 is not expressly so limited, but its provisions all show that it was only general assignments that the legislature had in view. It cannot be supposed the intention was to impose such restrictions upon every transfer of a particular article out of the bulk of one’s property to pay or secure a particular debt. To come within the act there must be a trust created for the benefit of some persons other than the parties to the assignment. Noyes v. Brown and Trustees, 33 Vt. 431, It must be regarded as settled that in order to come within the Act of 1843, an assignment must contain a trust for the benefit of others not parties to it, and it must be general, that is, it must embrace, substantially, all the debtor’s property. Both these requisites are indispensable for that purpose.

In Mussey v. Noyes, 26 Vt. 463, the assignment contained such trust, but it was held not to come within the Act of 1843, because it did not embrace all the debtor’s property, although it included some $80,000, or $90,000. of property and omitted $15,000. or $20,000. In Peck & Co. v. Merrill and Trustee, [429]*42926 Vt. 686, the assignment was general, embracing all the debtor’s property, but it contained no trust for other creditors, and it was decided not to be within that statute for the reason that it contained no such trust. As to what contracts or transfers came within the act, we think. the Statute of 1852 must receive the same construction as that given to the Act of 1843. It was intended as a substitute for it. The Act of 1852-was intended to permit and regulate what the Act of 1843 had prohibited. Similar statutes in other states have been so construed as the cases cited in argument, and many others that might be referred to, show. The U. States v. Hooe et al., 1 Pet. Cond. 458 ; The U. States v. Howland & Allen, 4 Pet. Cond. 404 ; Conrad v. Atlantic Ins. Co., 1 Pet. 386 ; Henshaw et al. v. Sumner, 23 Pick. 446 ; Mer. Manf. Co. v. Smith & Tr., 8 N. H. 347. See St. of Mass. 1836, and N. H. St. of 1834, relating to assignments. It is claimed by the defendant’s counsel that the lease, in question contains such trust as is necessary to bring it within the statute. This depends on the construction of the instrument. The provision relied on is that in relation to the payment of the rent. The instrument is in the usual form of a lease in its general provisions. The language of the lessor in relation to the rent is, that he leases the property for the term mentioned, “ for the sum of one hundred and twenty-five dollars a year for said farm and stock,. &c., to be paid yearly by the said John A. Stanley on notes which Horace Stanley holds against said E. B. Stanley.” In a subsequent part of the lease the plaintiff among other things, stipulates to “pay on the notes above mentioned yearly one hundred and twenty-five dollars for the use of said farm and stock.” Does this language give to Horace Stanley a right to compel the lessee to pay to him, or create a trust he could enforce against this plaintiff? It is not the common language of a trust, although it manifests an intention in the parties to the lease to have the payment thus made. But in this case there is nothing transferred but the temporary use, leaving E. B. Stanley still the owner of the property, and there is nothing else except the language above stated, to show that the purpose of the lease was to secure to Horace Stanléy his debt» [430]*430It is like the ordinary case of the sale of a particular piece of property with an agreement by the purchaser with the seller, to pay for it by paying a particular debt to a particular creditor which the vendor owes, without any privity with such creditor. In such case the creditor to whom the payment is to be made, has no right that he can enforce under such contract. We think the lease created no trust that Horace Stanley could enforce. It would have been competent for the parties to the lease to have directed the payment to some other purpose notwithstanding that stipulation, or to have surrendered and cancelled the lease, and put an end to the accruing rent, without the assent of Horace Stanley. We think, therefore, that it cannot be said that this lease was in trust for Horace Stanley, and for this reason it is not an assignment 'within the statute. This lease is wanting in another requisite of a general assignment. It is not an assignment of all, or substantially all, the debtor’s property. Even if we could say that it embraces, substantially, all the articles or subjects of property, (and perhaps we might say this,) yet it does not transfer all, or substantially all, the debtor’s interest in that property. In fact it is only the use for a short time that is transferred. The property, title or ownership is not transferred. That is still left in the lessor, and constitutes the substantial value compared with the value of the use transferred. A transfer of a partial interest in one’s entire property is no more a general assignment than a transfer of one’s entire interest in a part. Hence it is said in .the books that an assignment imparts a transfer of the entire interest. That is no reason why a pledge or mortgage is held in the cases cited by counsel not to be within the statutes relating to assignments. The instrument in question is not an assignment in the commercial sense, or in the popular sense of that term, and not within the statute.

2. It is also claimed that this lease is void at common law by reason of certain restrictions imposed at common law on assignments by debtors. It is claimed that it is void because the property is to come back to the lessor without any provision for a distribution among the creditors. But as we hold that this is not a general trust assignment, this class of objections have no appli[431]*431cation. It is only in relation to general trust assignments that such restrictions are imposed or such requirements held necessary at common law. They have no application to partial •assignments, or assignments not in trust; much. less are they applicable to such an instrument as this, which is not an assignment in form or in substance either under the statute or in the common law sense of that term as applicable to this subject. We are cited to Dana v. Lull, 17 Vt. 390, where it was decided by a majority of the court that a general trust assignment for the benefit of certain specified creditors was void because it contained no provision for-a distribution "of the surplus among the other creditors, but left an implied resulting trust to the assignor. In that case there was a trust to certain creditors not parties to the assignment, and the court labored to show that upon the evidence it must be taken to be an assignment embracing all the debtor’s property, and then proceed to decide that it is a general assignment and therefore void for the reason already stated. The fair inference is, that the court considered that if it was not a general assignment the objection did not apply. In the subsequent case, Peck & Co. v. Merrill & Tr., 26 Vt.

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36 Vt. 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stanley-v-robbins-vt-1863.