KERBS v. EWING.

Circuit Court, W. D. Missouri, W. D.

1884.

ASSIGNMENT FOR BENEFIT OF CREDITORS—MISSOURI STATUTE—DEED OF TRUST FOR BENEFIT OF CERTAIN CREDITORS.

No matter what the form of the instrument, where a debtor in Missouri, being insolvent, conveys all of his property, to a third party to pay one or more creditors, to the exclusion of others, such a conveyance will be construed to be an assignment for the benefit of all his creditors; the preference being in contravention of the assignment laws of the state.

Demurrer to Bill of Complaint.

Scott & Taylor, for plaintiffs.

Karnes & Ess and Adams & Stuebenrauch, for defendants.

MCCRARY, J. This case is not different in principle from the case of Martin v. Hausman, 14 FED. REP. 160. It is true that in Martin v. Hausman the technical deed of trust, which was construed to be an assignment for the benefit of creditors, was defective as a deed of trust, in having no defeasance clause attached thereto. In this case, the instrument is a deed of trust in proper form. This, however, can make no difference. No matter what the form of the instrument, where 694a debtor, being insolvent, conveys all his property to a third party to pay one or more creditors, to the exclusion of others, such a conveyance will be construed to be an assignment for the benefit of all the creditors; the preference being in contravention of the assignment laws of this state. Demurrer overruled.

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