Grimes v. Grimes
Court of Appeals of Kentucky
Case 67 — PETITION EQUITY APPEAL FROM BOURBON CIRCUIT COURT. In order that a payment shall operate as an assignment for all creditors, under the act of 1856, there must exist insolvency and an intention to prefer. (1 Metcalfe, 455; 2 Metcalfe, 336; 79 Ky., 176, Brooks, Waterfield & Co. v. Staton.) A debtor being insolvent and knowing that fact makes a payment to a creditor, it is a preference under the act of 1856, and operates as an assignment of all the debtor’s property.
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Case 67 — PETITION EQUITY APPEAL FROM BOURBON CIRCUIT COURT. In order that a payment shall operate as an assignment for all creditors, under the act of 1856, there must exist insolvency and an intention to prefer. (1 Metcalfe, 455; 2 Metcalfe, 336; 79 Ky., 176, Brooks, Waterfield & Co. v. Staton.) A debtor being insolvent and knowing that fact makes a payment to a creditor, it is a preference under the act of 1856, and operates as an assignment of all the debtor’s property. (78 Ky., 470, Taylor v. Taylor; 11 Bush, 359, Thompson v. Heifner’s Ex’r.)
1Opinion of the Court
JUDGE HOLT
delivered the opinion of the court.
John B. Grimes, on June 2, 1879, conveyed all bis estate, save tbat exempt by law, to a trustee for- .tbe *512benefit of bis creditors. He was then largely indebted, and, among others, to his brother, George W. Grimes, as his guardian. In February previous he had sold a lot of corn to one of his creditors, W. S. Grimes, in part payment of his debt; and on August 22, 1879, George W. Grimes, claiming that this was a preference within the- act of 1856, and operated as an equitable transfer of all the property of John B. Grimes for the benefit of his…
2Cases cited2 opinions
- Thompson v. Heffner's executorsCourt of Appeals of Kentucky · 1875
- Hampton v. Morris & RodmanCourt of Appeals of Kentucky · 1859
3Cited by9 opinions
- In Re Rexplore Drilling, Inc., Debtor. J. Hunt Perkins, Trustee v. Petro Supply Company, Inc.Court of Appeals for the Sixth Circuit · 1992
- Heidrich & Co. v. SilvaCourt of Appeals of Kentucky · 1890
- Northern Bank v. Farmers' Nat. BankCourt of Appeals of Kentucky · 1901
- Union Trust & Savings Co. v. TaylorCourt of Appeals of Kentucky · 1910
- Finan v. Finan's TrusteeCourt of Appeals of Kentucky (pre-1976) · 1933
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