Pennington v. Webb-Hammock Coal Co.

This is a general creditors’ proceeding in which there are numerous controversies. We have dealt with all these matters in a memorandum heretofore filed. Two of the questions we considered are of general interest to the profession and our discussion of these questions is here reproduced.

To secure purchase money indebtedness to Nashville Coal Company, Webb-Hammock Coal Company, the • insolvent corporation being wound up herein, executed a trust deed. The chancellor and the Court of Appeals denied priority of payment to this claim over the claims of general creditors. The lower courts so…