Rogers v. Jones

Decided July 1, 1871

Nebraska Supreme Court · decided 1871-07-01

This was a creditor’s bill filed in the District Court for Douglas county, on the seventh of August, 1858. At the March term, 1858, of said court, Rogers recovered a judgment against Jones and Wood for $1,181.79, on which execution was issued and returned unsatisfied. At the time of the recovery of the judgment the defendants were druggists in Omaha, and shortly thereafter dissolved the partnership, Jones continuing the business and Wood leaving the Territory.

Decided 1871-07-01

¶1The court,

by Hall, Ch. J.,

¶2held that the transaction was fraudulent as to creditors. It was unnecessary to decide, as contended for by the appellant, whether a trust in personalty could be created by parol under our statutes. The case must be determined on its own facts. It would *418open a wide door to fraud to suffer an insolvent to convert his property into notes payable to a friend, and for the parties to, conceal the transaction from all interested. It would give them the best opportunity to apply the money collected on the notes to the benefit of the assignor, without the possibility of the creditors being able to follow the fund.

¶3Decree affirmed.