Wilson v. Edwards

32 Pa. Super. 295, 1907 Pa. Super. LEXIS 3
CourtSuperior Court of Pennsylvania
DecidedFebruary 25, 1907
DocketAppeal, No. 146
StatusPublished
Cited by20 cases

This text of 32 Pa. Super. 295 (Wilson v. Edwards) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Edwards, 32 Pa. Super. 295, 1907 Pa. Super. LEXIS 3 (Pa. Ct. App. 1907).

Opinion

Opinion by

Rice, P. J.,

By virtue of an execution issued upon a judgment against [299]*299J. 'W. Edwards, a stock of merchandise in the retail cigar stand, of which he was formerly the proprietor, was levied upon by the sheriff on January 15, 1906. B. B. Caniff having given notice that he claimed the goods, the court, upon the sheriff’s application, granted a rule on the plaintiffs in the execution and the claimant to show cause why an issue should not be framed to determine the ownership, as provided in the sheriff’s interpleader act of 1897. In response to the rule the claimant answered, that on November 25, 1905, he purchased from Edwards his entire stock of goods, good will and business; that he paid the agreed price and received a bill of sale for the goods and an assignment of the lease, “ all of which was done in good faith; ” and that he was still the owner of the goods. It appeared bj' the plaintiffs’ answer, and is not disputed, that the debt of Edwards, for which the judgment was obtained, was incurred prior to this alleged sale, and it was admitted by the claimant on the argument of the rule, that he did not give notice to the plaintiffs at the time he bought the goods from Edwards, as required by the Act of March 28, 1905, P. L. 62. The court discharged the rule and directed the sheriff to proceed with the execution; whereupon the claimant took this appeal.

The first question to be considered is as to the construction of the act, and particularly the first section, which reads as follows : “ That the sale in bulk of the whole, or a large part, of a stock of merchandise and fixtures, or merchandise, or fixtures, otherwise than in the ordinary course of trade and in the regular and usual prosecution of the seller’s business, shall be deemed fraudulent, and voidable as against the creditors of the seller, unless the purchaser shall, in good faith, and for the purpose of giving the notice herein required, make inquiry of the seller, and receive from him a list in writing of the names and places of residence or business of each and all of his creditors, and, unless the purchaser shall, at least five days before the consummation of the sale, give personal notice of said proposed sale, to each of the creditors of the seller as appearing on said list, or use reasonable diligence to cause personal notice to be given to them, or shall deposit in the mail a registered letter of notice, postage prepaid, addressed to each of the seller’s said creditors at his post-office address, according to the written [300]*300information furnished: Provided, however, that no proceedings at law or equity shall be brought against the purchaser to invalidate any such voidable sale, after the expiration of ninety days from the consummation thereof.”

It is contended that the plaintiff has not instituted a proper proceeding to have the sale set aside as to creditors ; that if the legislature had in mind the protection of creditors, it was the protection of all the creditors equally, and not merely the protection of an alert and active creditor who secures judgment and issues execution. This position is not tenable. It is not incumbent on a creditor, as to whom such a sale is fraudulent and voidable, to obtain the co-operation of other creditors. He has the right to attack it in the method which was always an available - and appropriate method for a creditor to pursue in order to invalidate, that is, to render of no legal force and effect, so far as the collection of his claim is concerned, a sale of chattels by a debtor, which as to such creditor is voidable upon the ground of fraud. To levy on the goods as the property of the debtor, and in response to the sheriff’s rule to interplead to aver the facts which made such sale fraudulent and voidable as to creditors, is an appropriate proceeding “ to invalidate any such voidable sale ” within the meaning of the act of 1905.

Another point urged by the claimant with more apparent confidence is that a failure on the part of the purchaser to comply with the provisions of the act simply raises a prima facie presumption of fraud, thus relieving a creditor of the necessity of producing evidence to that effect, and at the same time casting the burden of establishing the good faith of the transaction on the purchaser. It is argued, on the other hand, that this construction would make it possible now, as it was before the passage of the act, for a dealer to carry into successful execution a dishonest scheme to cheat his creditors by converting his entire stock of merchandise into money by a sale in bulk, “ because money is more easily shuffled out of sight,” provided the other party to the transaction is not implicated in the intended fraud otherwise than as a bona fide purchaser for value. Counsel show quite clearly, and we think it must be conceded, that, owing to the facility which such a transaction affords for defrauding creditors, the suggested construction would deprive the statute of much of its effectiveness as a remedy for the mis[301]*301chief the legislature had in view. Moreover, the words chosen by the legislature to express their will leave no room for doubt that they intended to do more than simply to change the law as to the burden of proof. The language is, “ shall be deemed fraudulent and voidable as against the creditors of the seller,” not simply “shall be presumed” to be fraudulent, etc. If the latter expression had been used, it might be argued with some plausibility that the legislature did not' have in mind an irrebuttable presumption. See Hart v. Roney, 93 Md. 432 (49 Atl. Repr. 661). But the word “ deemed ” was evidently chosen advisedly and with reference to a meaning that is attached to it, not only by the lexicographers, but also by the courts in adjudicated cases involving the construction of statutes. For example, it has been held that when by statute certain acts are deemed to be crimes of a particular nature, they are such crimes, and not a semblance of it, nor a mere fanciful approximation to or designation of the offense : Commonwealth v. Pratt, 132 Mass. 246 ; 1 Bouv. L. D. (Rawles ed.) 526. One of the meanings of the word “ deem ” is, “ to j udge; adjudge; decide: ” Standard Dict. ; Russell v. Russell, L. R. 14 Ch. Div. 471, 478; Brozel v. Buffalo, 2 Silv. (N. Y.) 375 ; and the word “ deemed ” is often used in the sense of, “held, adjudged, declared:” 5 Am. & Eng. Ency. of Law (1st ed.), 458, and of, “judged, determined, considered or judged ; ” 13 Cyclopedia of Law and Procedure, 757. In a note in the book last cited a case is referred to in which it was said: “ And when it is enacted that the vendor of an article shall for any purpose ‘ be deemed the manufacturer thereof,’ for such purpose, he is to be absolutely considered such manufacturer.” So in the construction of the act of congress relative to naturalization it was said : “ The word j deemed ’ is the equivalent of ‘ considered ’ or ‘ judged ’; and, therefore, whatever an act of congress requires to be ‘ deemed ’ or ‘ taken ’ as true of any person or thing, must, in law, be considered as having been duly adjudged or established concerning such person or thing, and have force and effect accordingly. When, therefore, congress declares that an alien woman shall, under certain circumstances, be ‘deemed’ an American citizen, the effect, when the contingency occurs, is equivalent to her being naturalized directly by an act of congress, or in the usual mode thereby prescribed: ” Leonard v. Grant, 5 Fed. Repr. 11. “ The [302]*302sense given to particular words by our great lexicographers is always entitled to tveight.

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Bluebook (online)
32 Pa. Super. 295, 1907 Pa. Super. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-edwards-pasuperct-1907.