Gilkerson v. Hamilton

U.S. District Court

Decided July 1, 1882

U.S. District Court · decided 1882-07-01

[This was a suit in bankruptcy by Gilker-son and Sloss against P. C. Hamilton.] T. C. Hamilton, a merchant of Prescott, Arkansas, \becoming insolvent, made a general assignment for the benefit of his creditors to J. H. Arnold, as assignee, the assignment conveying all the assignor's property, real and personal, wherever found. On the day the assignment was executed, or the previous day, Hamilton paid to Arnold a debt he owed him of $2.0110 in cash.

Decided 1882-07-01

Held (CALDWELL, District Judge):

¶1X. The payment by the insolvent assignor to his assignee of a just debt, when made at the time of the assignment is a quasi bribe, and a badge of fraud.

¶22. The omission of schedules to tho assignment, as well as of an inventory, is a badge of fraud.

¶33. Tlie delivery of the assets to the assignee before he -had qualified himself to take possession, by filing tho inventory and bond, was a fraudulent conveyance.

¶44. The concealment of the $3,030 was part and parcel of the same transaction as the assignment, and rendered the instrument of assignment fraudulent and void.