Taylor's administrator v. Taylor's assignee
Court of Appeals of Kentucky
Case 94 — EQUITY— appeal from bourbon circuit court. The check in favor of Shaw was delivered by Taylor in contemplation' of insolvency. The proof shows that lie knew he could not pay his. debts, and that the check was drawn in payment of an antecedent, debt.
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Case 94 — EQUITY— appeal from bourbon circuit court. The check in favor of Shaw was delivered by Taylor in contemplation' of insolvency. The proof shows that lie knew he could not pay his. debts, and that the check was drawn in payment of an antecedent, debt. The preference brings the case within the act of 1856. No such doctrine has ever been held that a payment of a debt by a party in failing circumstances, without any knowledge of his condition, made in the ordinary course of business, amounts to a preference of creditors under the act of 1856.
1Opinion of the Court
JUDGE HINES
delivered the opinion of the court.
Appellee, Wm. M. Taylor, being hopelessly insolvent, gave a check on a bank for $114 in payment of an antecedent debt. The sole question is, did this operate as an-assignment for the benefit of his creditors of all the property of Taylor under what is commonly known as the act of 1856?
That act, approved March 10th, 1856, reads:
“That every sale, mortgage, or assignment which shall* be made by debtors in contemplation of insolvency, and with the design to prefer one or more creditors to the exclusion in whole or in part of others, shall operate as…
2Cases cited2 opinions
- Thompson v. Heffner's executorsCourt of Appeals of Kentucky · 1875
- Woolley v. HoltCourt of Appeals of Kentucky · 1879
3Cited by5 opinions
- Leach v. Mechanics Savings BankSupreme Court of Iowa · 1926
- New Farmers Bank's Trustee v. CockrellCourt of Appeals of Kentucky · 1899
- Boswell v. Citizens Savings BankCourt of Appeals of Kentucky · 1906
- Lewis v. Dark Tobacco Growers' Co-Op. Ass'nCourt of Appeals of Kentucky (pre-1976) · 1933
- Farmers' & Merchants' Bank v. WisdomCourt of Appeals of Kentucky (pre-1976) · 1928