Hill v. Draper
Supreme Court of Arkansas
APPEA.L from Sevier Circuit Court, in chancery. Rufus D. Hearn, Judge. Draper, McElroy & Rhyne composed the mercantile firm of Draper, McElroy & Co. After Rhyne’s death, the firm béing insolvent, the surviving partners conveyed the stock of goods, in satisfaction of an individual indebtedness of McElroy, to John and Kelly Cowling who had full knowledge of the firm’s insolvency.
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APPEA.L from Sevier Circuit Court, in chancery. Rufus D. Hearn, Judge. Draper, McElroy & Rhyne composed the mercantile firm of Draper, McElroy & Co. After Rhyne’s death, the firm béing insolvent, the surviving partners conveyed the stock of goods, in satisfaction of an individual indebtedness of McElroy, to John and Kelly Cowling who had full knowledge of the firm’s insolvency. Hill, Fontaine & Co., creditors of the firm, brought suit in equity to subject the property in the hands of the Cowlings to the payment of their debt against the firm, alleging the foregoing facts. The court sustained…
1Opinion of the CourtHemingway, J.
Sf débts.ayi°ent The real question in this case is, When an insolvent partnership has been dissolved by the death of one of its members, can the surviving partners transfer the firm property in payment of their individual debts, and can a transferee who takes with notice be charged as trustee at the suit of partnership creditors ? The question cannot be determined by the rule in cases cited as to the power of one partner, with the assent of his associates, to transfer joint effects in payment of individual debts; for the assent of the associates is a material element in such cases, which, on…
2Cases cited5 opinions
- Shanks v. KleinSupreme Court of the United States · 1881
- Hutchinson v. SmithNew York Court of Chancery · 1837
- Roach v. BrannonMississippi Supreme Court · 1879
- Couchman's adm'r v. MaupinCourt of Appeals of Kentucky · 1879
- Holland v. FullerIndiana Supreme Court · 1859
3Cited by11 opinions
- Coolidge v. BurkeSupreme Court of Arkansas · 1901
- State ex rel. Richardson v. WithrowSupreme Court of Missouri · 1897
- French v. VanattaSupreme Court of Arkansas · 1907
- Sessoms v. BallardSupreme Court of Arkansas · 1923
- Holloway v. MorrisSupreme Court of Arkansas · 1931
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