South Branch Lumber Company v. Ott

STATEMENT BY MR. JUSTICE BREWER.

On April 27, 1886, George Ott, one of the defendants, doing business at Davenport, Iowa, made a general assignment of all his property, for the benefit of his creditors, to Charles F. Meyer. The next day complainant commenced its action at law in the district court of Scott county, Iowa, against Ott, to recover $37,191.69, and caused a writ of attachment to be issued against the property of Ott. The writ was served by a levy upon certain real estate; and by the garnishment of Meyer, the assignee, and also of Charles Hill and Addie Kloppenberg, holders of chattel mortgages against Ott. The action was removed by the plaintiff to the circuit court of the United States for the southern district of Iowa, and thereafter proceeded to judgment on September 17, 1887, for $40,261.34. Shortly after such removal complainant commenced this suit, in aid of the action in attachment, by filing its bill in that court, the object of which was to have the assignment declared void, and a receiver appointed of the property. The debtor, Ott, his assignee, Meyer, the chattel mortgagees, Hill and Kloppenberg, and the guardian of the latter, were made parties defendant. Thereafter Meyer, the assignee, died, and in his place were substituted his successor, J. B. Meyer, and his executrix, Auguste Meyer. Answers were filed, proofs taken, and at the June, 1887, term, a decree was entered sustaining the validity of the assignment, but adjudging the mortgage to Hill fraudulent as against complainant, and ordering that the assignee, out of the funds in his possession, pay to complainant the sum of $3,225, the amount due on that chattel mortgage. From this decree the plaintiff has appealed to this court.

F. J. Smith and J. M. Flower, for appellant.

[Argument of Counsel from pages 623-626 intentionally omitted]

John C. Bills, for appellees.

Mr. Justice BREWER, after stating the facts in the foregoing language, delivered the opinion of the court.