Clark Shoe Co. v. Edwards
Supreme Court of Arkansas
Appeal from Ouachita Circuit Court. Charees W. Smith, Judge. Where a failing debtor makes an assignment purporting to convey all his property for the benefit of creditors, but intentionally withholds a valuable part, the assignment is fraudulent and void. 46 Ark. 405; 54 id. 128 ; 53 id. 86. The court erred in modifying the instructions by striking out the word “ valuable” and inserting “material.”
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Appeal from Ouachita Circuit Court. Charees W. Smith, Judge. Where a failing debtor makes an assignment purporting to convey all his property for the benefit of creditors, but intentionally withholds a valuable part, the assignment is fraudulent and void. 46 Ark. 405; 54 id. 128 ; 53 id. 86. The court erred in modifying the instructions by striking out the word “ valuable” and inserting “material.” The unintentional omission of assets by accident or oversight does not invalidate an assignment. 85 N. Y. 469. In 46 Ark. 405, the withholding was intentional. The fraud must be in the assignment…
1Opinion of the Court
Battle, j.
During the year 1890 M. B. Edwards and T. J. Edwards did a mercantile business in Stephens, in this State, under the firm name and style of M. B. Edwards & Co. On the 15th of October, 1890, T. J. sold his interest in the property of the firm to M. B. Edwards, and M. B. assumed and agreed to pay the indebtedness of the partnership, and continued the business until the second of January, 1891, when he discovered that he was unable to pay his debts. On that day or the next he conveyed by deed to D. Newton, in trust for the payment of his creditors, assets which he represented therein…
2Cases cited1 opinion
- Probst & Hilb v. WeldenSupreme Court of Arkansas · 1885
3Cited by2 opinions
- Baxter County Bank v. CopelandSupreme Court of Arkansas · 1914
- Gibson v. BarrettSupreme Court of Arkansas · 1905