Chever

Chever v. Hays

Good Law
3 Cal. 471
Supreme Court of CaliforniaOctober 15, 1853California834 words

Opinion

Lead Opinion

Murray, J.

delivered the opinion of the court. Heydenfeldt, Justice, concurred.

The only question presented by the present case is, whether a voluntary assignment, executed for the benefit of creditors, is void, if not made in conformity with the statute of May 4th, 1852, entitled “ An act for the relief of insolvent debtors, and protection of creditors.”

The decision of this question turns upon the construction of the 39th section of the act referred to, which declares, that no assignment of any insolvent debtor, other than as provided in this act, shall be legal or binding on creditors.

It is contended that this section only operates upon insolvent debtors within the meaning and applying for the benefits of the act, and that the common law rights of a debtor to prefer or assign, for the benefit of his creditors, is not taken away or affected by the statute.

In support of this position the case Hickley v. The Farmers and Mechanics’ Bank, 5 Gill and Johns., has been cited. In that case it was declared by an act of the legislature, that “ any deed, &e., made to a creditor or surety by any person with a view or under an expectation of being, or becoming, an insolvent debtor, and with the…

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