Fuqua v. Ferrell
Court of Appeals of Kentucky
Case 15 — EQUITY— APPEAL FROM BUTLER CIRCUIT COURT. The execution of the mortgage by Ferrell in contemplation of insolvency to appellee created a trust in him for the benefit of his creditors. A payment to appellees by the mortgagor enured to their benefit.
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Case 15 — EQUITY— APPEAL FROM BUTLER CIRCUIT COURT. The execution of the mortgage by Ferrell in contemplation of insolvency to appellee created a trust in him for the benefit of his creditors. A payment to appellees by the mortgagor enured to their benefit. (Gen. Stat., 490; Doyle v. Sleeper, 1 Dana, 538; Story v. Graham, 4 Met., 320; Thompson v. Heffner, 11 Bush, 353; Corn v. Simms, 3 Met., 397; Story’s Eq., sec. 1261-1263; 3 B. Mon., 104; 13 Bush, 112; West v. Sanders, 1 Mar., Ill; 3 J6., 502; 4 J. J. Mar., 458; 7 Dana, 498.) The mortgage was not made in „ contemplation of insolvency.…
1Opinion of the Court
JUDGE HARGIS
delivered the opinion of the court.
Ferrell executed a mortgage on growing corn and tobacco to Hatcher, to secure the payment to him of $200 that had .been due some time before the execution of the mortgage.
Suit was brought by appellant for the purpose of having the mortgage declared to operate as an assignment of all of the property of Ferrell to the benefit of his creditors, because of an alleged preference of Hatcher to the exclusion •of other creditors.
*70■ Before the suit was brought Ferrell paid Hatcher $174.50* in money on his debt, and shortly after its institution he paid the…
2Cited by8 opinions
- Baker v. KinnairdCourt of Appeals of Kentucky · 1893
- Northern Bank v. Farmers' Nat. BankCourt of Appeals of Kentucky · 1901
- Reynolds v. SizemoreCourt of Appeals of Kentucky (pre-1976) · 1930
- Cryer v. ConwayCourt of Appeals of Kentucky · 1918
- Oliver & O'Bryan v. SuttonCourt of Appeals of Kentucky · 1897
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