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35 Ill. App. 147

Rhode v. Matthai

Appellate Court of Illinois

Decided December 24, 1889

Appellate Court of Illinois · decided 1889-12-24

<p>Attachment—Stock and Fixtures—Fraudulent Conveyance—Mortgage.</p> <p>1. Mortgages upon stock and fixtures are invalid, so far as the stock is concerned, as against creditors of the mortgagor, when sales therefrom are made by consent of the mortgagees.</p> <p>2. Upon attachment proceedings based upon the charge that the defendant had fraudulently conveyed his property, this court declines, in the absence of evidence of fraud in fact, to interfere with the judgment in his behalf.</p>

Cited by 3 later decisions — most recently March 1895

3 state decisions

Relies on Barnet v. Fergus · Davis v. Ransom · Shove v. Farwell

Good law ✅— No negative treatment on recordhow we know

Decided 1889-12-24

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Gary, P. J.

¶1This case is nearly the converse of Spear v. Joyce, 27 Ill. App. 456. It is an attachment based upon the charge that the appellee had within two years fraudulently conveyed, etc.

¶2He kept a saloon and the stock and fixtures were covered by chattel mortgages. He made sales from the stock in the ordinary course of business, necessarily with the knowledge) and implied, if not express, consent of the mortgagees. As to the stock, therefore, the mortgages were invalid as against creditors. Davis v. Ransom, 18 Ill. 398. But not as to the fixtures. Barnet v. Fergus, 51 Ill. 352.

¶3The same consequence might follow as to a sale without a sufficient delivery. Schwabacker v. Rush, 81 Ill. 310. Constructive fraud, however, if there is in the mortgagor or vendor no fraudulent intent, in fact, is no ground for an attachment against him. Last case, and Shove v. Farwell, 9 Ill. App. 256.

¶4The Superior Court was of this opinion, and there being no evidence of fraud in fact, instructed the jury to find for the appellee on the attachment issue. The judgment affirmed.

¶5Judgment affirmed.

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