Wallace v. Milligan

<p>Receiver.—Partnership.— Firm Assets.—Right of Action.—A receiver of a partnership may, under the order of the court, take possession of all. firm assets and collect all debts due to the firm, hut his authority is confined to what are properly firm assets; and where an action might not have been maintained by the firm, it can not be maintained by the receiver, except where the firm has been guilty of fraud against its creditors.</p> <p>Same.—Individual Liability of Partner to Firm Creditors.—Not a Partnership Asset.—The individual liability of a member of a partnership to the firm’s creditors is not an asset of the firm, and in the absence of a statute authorizing the receiver of the partnership to enforce such liability-in behalf of the creditors, he has no such power, and the right of action, is in the creditors themselves.</p> <p>Same.— Voluntan/ Assignment of Partner.—Payment of Individual Creditors.— Surplus.—Right of Receiver to Collect for Partnership Creditors.—The receiver of an insolvent partnership, who holds his appointment under the superior court of a county, has no power by virtue of his appointment, nor can it be conferred upon him by an order of such court made upon petition of a part of the firm creditors, or otherwise, to collect for-such creditors from the assignee of a member of the firm, who is not indebted to tbe partnership, and who made an assignment under the statute, which is pending in the circuit court, the surplus that may remain in the hands of the assignee after payment of the individual creditors of the assignor.</p>