The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-09-12
Vice ChancelIor's Court.

For several days had in our possession the fol-
lowing the publication Of which pressure on our
columns has hitherto prevented However, since the
repeal OF the Bankrupt Law assignments have been
sorted to, it still retains its interest to the mercantile
muny.
Rufus Mead Henry Phillips, NathGniel Ferris, snd
Clsrissa Ho'esrd Hon Henry Foster, ESQ, and
Bsnjsmin r sherman, ESQ. for complainant s. F.
Qykeman, Esq, for Mrs Howard.
This bill filed by Rufus Mead Judgment creditor
OF Henry Phillips, to set aside assignment made by
Phillips to Mr. Ferris and Mrs Howard for the pay
OF certain debts, giving preferences to portion OF the
creditors efP4ips and to give the complainant satsac-
ton OF his debt out OF the assigned property. The
sgnment was declared void and satisfaction OF the
panans debts and costs decreed to be made by II
assgnees out Of the aforesaid property in their hands
The following is extract from the opinion Of the As
sistant Vice Chancellor The next fact to which
attention was directed isapr0vision in the assignment
succeeding the direction for the payment Of the several
classes Of creditors, and which is in these words Ex
ceptng nevertheless in all the right Of paying
creditors from the payments hereinbefore provided for
to be made all the expenses necessarily incurred in the
execution of this trust and also to retain out of the
ceeds OF this assignment all coss charges and expenses
necessarily incurred by me assgnees herenbeore
namad in defending suits that may hereafter be in
sued against me, them, either of them, by any
creditor or other person persons for any matter
thing growing out Of in any way connected with this
assignment II was well said, at the argument that
tn: law tolerate, assignments giving i does
ration is that debtor shall not reserve by the assign
ment any benefit or advantage to himself out oil the
signed property either by coercion of his
creditors by control the disposition of the fund
will vitiate the assignment. Bradman Va. Holiday de-
cidsd by the Chancellor, April A. ls43. Abstract of
Chanceors opinion by Mr.. Barbour VOL p al think
the clause first stated from the assignment attempt
by the debtor TO benefit from the fund to which he
was not entitled and If uphe Id ould enable him II SO dis
posed TO drive his creditors into almost any terms of
promise cannot imagine any suit that might be brought
against any debtor relative to the assignment in which be
need to incur costs for the benefit ohe fund But there
many supposable in which the provision ques
ton might be used inequisbly is Standing nscs to
all creditors that any effort which they may make 10
question the amount due to thsm Others stated
the assignment to compel the execution will be resist
cd by the debtor that he will contest such efforts
end of and will then abstract he and
penses incurred by him." in doing from the fund 10
which they are looking for dividend Another effect of
the clause would be, to postpone distribution for in
definite length of tme The sssignees could
ably conjecture. after sound law suit commenced
for any matter or thing growing any matter
connected with the assignment what amount OF
would be incurred by Phillips in the Of the tiga.
ton, and they would TO avoid responsibility defer the
close OF their trial until all these things should be ascer
tanned In the meantime, creditors sick with hope defer.
would be ready accept almost any per centage on
their debts and release the residue evident that the
clause en0bles Phillips to determine what suits shall be
defended and to what extremity of appeal such defence
shall be carried Therefore places in his hands means
arising from the assigned property to deter creditors
from questioning his acts and ultimately coerce them
into his own terms Of settlement. 1t is to the
argument that the power is contingent and that no occs
sion has arisen for its atom the may be said OF
the coercive clause in Waterman Grover. The ques.
ton what does enable the debtor accomplish and
the law presumes that he intended all that the instrument
provides. cannot resist the inference Of fraudulent
intent the part of Phillips in this provision Of the
sgnment.