W. D. Smith & Co. v. Whitfield
Texas Supreme Court
Error from Panola. Tried below before the Hon. J. G-. Hazlewood. This was an action for the trial of the right of property. A. C. Hill being indebted to W. D. Smith & Co., they sued out an attachment, which was levied on some seed cotton belonging to him. Discovering some defect in the first, Smith & Co. sued out a second attachment, which was levied upon the cotton before the first was dismissed.
Read the full summary
Error from Panola. Tried below before the Hon. J. G-. Hazlewood. This was an action for the trial of the right of property. A. C. Hill being indebted to W. D. Smith & Co., they sued out an attachment, which was levied on some seed cotton belonging to him. Discovering some defect in the first, Smith & Co. sued out a second attachment, which was levied upon the cotton before the first was dismissed. Hill having learned that a second attachment would be issued because of a defect in the first, sold the cotton to the claimant, J. M. Whitfield, and the sale was completed before the dismissal of…
1Opinion of the Court
Willie, Chief Justice.
A debtor in failing circumstances may prefer one creditor to another, and convey his property in satisfaction of the preferred creditor’s claim.
The creditor may lawfully receive such property, as payment in whole or in part of his debt, and the transaction will be valid though, he knew that the intention and effect of the conveyance was to hinder and delay the other creditors of the grantor.
It is, however, essential to the validity of such a transaction, that the property conveyed be of value reasonably proportionate to the amount of debt it is intended to satisfy. These…
2Cases cited1 opinion
- Greenleve, Block & Co. v. BlumTexas Supreme Court · 1883
3Cited by6 opinions
- Texas Oil & Gas Corporation v. The United States of America, the Pecos County State BankCourt of Appeals for the Fifth Circuit · 1972
- Black v. VaughanTexas Supreme Court · 1888
- Hutcheson v. KingCourt of Appeals of Texas · 1904
- First State Bank v. Jones NixonCourt of Appeals of Texas · 1910
- First State Bank of Hamlin v. JonesCourt of Appeals of Texas · 1910
1 more not listed; retrieve them via the Exa API.