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20 Mo. 298

Morrow's Assignees v. Bright

Supreme Court of Missouri

Decided January 15, 1855

Supreme Court of Missouri · decided 1855-01-15

This was an action by Morrow’s general assignees for the benefit of creditors against Bright, for about eight hundred dollars due upon a note, account stated and agreement, all of ■which were included in the assignment. Bright pleaded as a set- off five hundred dollars paid by him since the assignment, on a protested note of Morrow’s, on which he was endorser. The assignment was dated April 9, 1853.

Good law ✅— No negative treatment on recordhow we know

Decided 1855-01-15

How this case has been cited

Cited by 10 later decisions — most recently March 1931

1 district · 8 state decisions

30185518601870188018901900191019201930decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Soott, Judge,

¶1delivered the opinion of the court.

¶2The only question in this case is, whether the defendant, Bright, is entitled to the benefit of the set-off which he claims, as against the plaintiffs ?

¶3The plaintiffs are the voluntary assignees of the insolvent Morrow, and their position in this action cannot be likened to that of an assignee for value of the specific debt which is sought to be recovered.

¶4In the case of Krause v. Beitel, (3 Rawle, 199,) it was held that the interest of a trustee of an insolvent debtor in debts due to the insolvent, is exactly that of the insolvent himself, as it stood affected by countervailing equities at the time of the assignment.

¶5Our statute, in suits brought by administrators and executors, allow debts existing against their intestates or testators and belonging to the defendant at the time of their death, to be set-off in the same manner as if the action had been brought by or in the name of the deceased. On this view of the subject, there would be no impropriety in allowing the set-off.

¶6But the matter may be presented in another light. Bright could not sue Morrqw to recover the money for which he was bound for him, until he had actually paid it. But this goes on a technical ground, peculiar to the action for money paid,, laid out and expended. Money cannot be said to be laid out for another until money is actually paid on his account. But, in substantial justice, as Bright was Morrow’s surety, and com-pellable by law to pay the debt, and as Morrow was insolvent, *301Bright may be regarded as the creditor of Morrow from the time the note was protested. Then, as there was an indebted-mess on the part of Morrow to Bright, and as the very act of assignment was evidence of insolvency, by which Bright became absolutely bound, there was an equity against the demand of Morrow at the time of the assignment, growing out of his indebtedness to Bright.

¶7We do not .consider that this action is affected by the third article of the present practice act.

Jude Ryland concurring,

¶8judgment affirmed.

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