Dunsmoor v. Furstenfeldt
Before: Vanclief
Synopsis
Assignment for Benefit of Creditors — Money Held by Assignee — Trust—Special Deposit — Rights of Creditors.—Money in the hands of an assignee of an insolvent debtor under an assignment for the benefit of creditors is held by the assignee in trust for the creditors, but is not a special deposit by or for them, and cannot be lawfully claimed by a creditor as his individual personal property, nor can all of the creditors jointly so claim it.
Id. — Accounting at Suit of Creditors—Title to Money Deposited in Court. — The transfer of money from the assignee of an insolvent debtor to the custody of the clerk of the court, in obedience to an order of the court in an action by one of the creditors against the assignee to compel an accounting with the creditors, gives the creditors no more title to the money than they had while it was in the hands of the assignee, until the determination of the suit by a decree fixing the share to which each creditor is entitled.
Attachment — Garnishment — Funds Held by Officer of Court.— When a defendant has a right to a certain distributive share of a fund in the hands of a receiver, master in chancery, or trustee of court, the officer may be effectually garnished by a creditor of the party so entitled, after the court has ordered it to be paid, and the officer has nothing more to do with the fund than to pay it over.
Id. — Money in Custody of Clerk — Order of Distribution — Debt Due to Distributee. —Where money is in the hands of a clerk of court, deposited under an order of the court by the assignee of an insolvent pending litigation as to the proper distribution thereof among the creditors, and an order of distribution is made by the court, the sum found due each creditor is a debt due the creditor from the clerk, and may be attached in his hands by a creditor of the creditor.
Id. — Definition of Debt. — Any kind of obligation of one man to pay money to another is a debt; the manner in which it is to be paid or the means of coercing payment do not enter into the definition.
Vanclief, C. The plaintiff (clerk of the superior court) brought this action to compel the defendants, Furstenfeldt and Geinger, to interplead as to their respective adverse claims to be paid a sum of money in the possession and custody of the plaintiff, which he was willing and ready to pay to the one to whom the court should determine it was due.
The court adjudged that Furstenfeldt was entitled to the money, and Geinger brings this appeal from the judgment upon the judgment roll, and contends that upon the facts found the judgment should have been in his favor.
The material facts found are substantially as follows: 1. In January, 1888, Peter Eschelbach made an assignment of his property to one Lewis, for the benefit of his creditors; 2. Thereafter, Sichler, one of the creditors of the insolvent, brought an action in the superior court of Los Angeles County against Lewis, the assignee, to compel him to account to the creditors; 3. In this action against the assignee he was ordered by the court, April 11,1889, to deposit with the clerk thereof, Dunsmoor, plaintiff herein, about $8,000, to be held pending the litigation as to the proper distribution thereof among the creditors, and thereupon the said sum was so deposited by the assignee; 4. On the same day, April 11, 1889, the court ordered a distribution of said sum among the creditors, one of whom was Antone Miller, to whom the court ordered the clerk, plaintiff herein, to pay from said money the sum of $305.32; 5. On July 3, 1889, Miller assigned all his right and title to the last-mentioned sum, then in the custody of the clerk, to the defendant Furstenfeldt, who, on the following ninth day of July, demanded it of [525]the clerk, but the clerk then refused and ever since has refused to pay the same to Furstenfeldt; 6. On the sixth day of April, 1889, the defendant Geinger obtained a judgment in the superior court of San Francisco against Antone Miller for the sum of $1,319, upon which execution was issued to the sheriff of Los Angeles County on June 18, 1889, and was duly served by copy and garnishment upon Dunsmoor, the plaintiff, and upon Lewis, the assignee of the insolvent, on June 20,1889; 7. Duns-moor, on June 21, 1889, answered to the garnishment notice that he held, subject to the order of the court, $305.32, which had been distributed, by order of the court in the case of Sichler v. Lewis, to Antone Miller, as above stated; 8. On July 1, 1889, defendant Geinger demanded of Dunsmoor said sum of $305.32, which the latter refused to pay, and which he still holds in his custody, subject to the judgment of the court in this action, as alleged in his complaint herein; 9. Thereafter the defendant Furstenfeldt petitioned the superior court of Los Angeles County for an order requiring Dunsmoor to pay to him said sum of $305.32, on the ground that it had been assigned to him by Antone Miller, to whom it had been ordered to be paid in the case of Sichler v. Lewis, Assignee, but the court, after “ due hearing,” denied his petition, “ upon the ground that said court had no further control or jurisdiction over said sum of money, by reason of the order of distribution previously made by said court.” Whether Geinger had notice of this petition is not stated, nor does it appear that he participated in the hearing.
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