Damaskus v. McCarty-Johnson Heating & Engineering Co.

A single question is here presented: Is the common law right to make an assignment for the benefit of creditors abrogated by the statutory proceeding relative to such assignments?

In November, 1928, the Betsy Boss Cafe and Candy Company made an assignment, admittedly insufficient under the statute, for the benefit of its creditors to Mark Harrison, who thereupon sold the property involved to James Damaskus and Peter Coclan, plaintiffs in error, for $1,008, its actual value. About one year after this sale, the McCarty-Johnson Heating’ and Engineering Company, defendant in error, secured a…