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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 4, Page 15   View pdf image (33K)
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BROOKS VS. THOMAS AND JEROME. 15
HENRY P. BROOKS, PERMANENT TRUSTEE
OF HENRY P. THOMAS,
vs.
HENRY P. THOMAS AND JOHN H. T. JEROME.
DECEMBER TEEM,1852.
[INSOLVENT LAWS—EFFECT OF ANSWER.]
WHERE the trustee attempts to vacate an assignment of the insolvent, as
in violation of the insolvent system, he is not required to offer direct evi-
dence of the facts upon -which he relies, but may avail himself of circum-
stances to establish the intent with -which the assignment was made, and
if they be sufficiently strong, it will be set aside.
But where the answer or evidence of the insolvent denies such intent, the
difficulty of making it out is materially increased, and nothing short of
circumstances of the strongest description will justify the Court in dis-
regarding such answer or evidence-
There must be both the intent to prefer, and to take the benefit of the
insolvent laws, or the transfer will not be disturbed.
To avoid a transfer or payment, under the 1st section of the Act of 1834,
ch. 293, actual notice must be brought home to the preferred creditor of
the insolvency of the debtor; mere technical or constructive notice is
not sufficient.
[The facts of this case are stated in the opinion.]
THE CHANCELLOR :
By the bill in this case, which was filed on the 15th of
October, 1850, it appears that the defendant, Thomas, peti-
tioned for the benefit of the insolvent laws on the 5th of Feb-
ruary, 1849, and that the complainant was appointed and
qualified by giving bond as his permanent trustee in Septem-
ber, 1850.
The proceedings show that Thomas, the insolvent, and one
Spotswood Childress, commenced business as grocers in the
city of Baltimore in September, 1847, and continued to carry-
it on until March, 1848, when they dissolved, and Childress
retired, and took with him the capital which he put in,
about $600, and his share of a small estimated amount of
profit. No capital was furnished by Thomas, but he brought

 
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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 4, Page 15   View pdf image (33K)
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