The weekly Panola star. [volume] (Panola, Miss.) 1857-1881, 1867-01-26
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Stew M and liIflard GHniih since
deceased were PARTNERS IN banking
That such they Issuci their rrnif
ptc of depail 10 onc llnah fof rar
tain sum II gold and silver deposited
with them that after The nli deposit
and tlr issuance NJ tho certificate.
. GrIllitlt died ilpt lIush assigned the
certificate 10 complainant That com
plaiuunt repeatedly demanded the
sum ~ money go deposited NJ said
stewart surviving partner, which be-
refused to pay
THE bill " Glcd, as creditor
bill against the heirs NJ law aud ad
ministrator Of Griffith and said Stew.
art alleging that the assets Of the
firm consists Of real estate only, and
praying to subject the same to the
payment ofcomplanaut'sdebt. There
was an amended bill, the substance
Of which, rs well as Of the original
bill, are stated above, as far as nee
cssary to the case now before us.
To both the original and amended
bills, defendant demurrcd and the
demurrcrs were sustained.
The bill proceeds upon the idea
that a joint creditor of a partnership
has an equitable lien ON the assets of
the partnership in the hands of the
survivor, upon the death of one of
the partners.
As against the surviving partner,
the creditor has no lien, and no
remedy except at law. lie may sue
the surviving partner at law, and
obtain his Judgment, and sell the
partnership property.
But as each partner has a lien on
the assets of the firm, in equity, for
the payment of its debts, courts OF
equity, upon the death of one part
ncr, with the assent of the surviving
partners, have permitted the creditors
to avail themselves of this equitable
lien, in favor of the partners, for the
purpose Of winding up and settling
the business Of the partnership, and
applying the assets, as in equity ought
to be done.
While the partnership is existing
creditors have no equity, strictly
speaking, against The effects of the
partnership, Neither have they any
lien on the partnership effects, for
their debts. Their only remedy i,
by action at law.-Story on Partner.
ship, $. 3jS, p. 500, and S. 81, 1876
Where the partners themsclvc,
have a lien upon the partnership
effects, for the discharge of all tho
debts and obligations thereof, "a,
they have in all cases where they
have not parted with it,) that lier
may in many cases be made avala
bic for the benefit of the creditors
But then the equities of the crcditori
are to be worked out, through tn,
medium of that of the partners
They have, indeed, no lien; but the,
have something approaching a lien
of which rh The assent Of The part
ncrs, entitled to the lien, they ma,
avail themselves, in court of equity
against The partnership c6ects.-Storl
on Partnership, sec, 800, p. 5ll-jl2
1t is only in cases of dissolution
BY the bankruptcy or death Of on
partner, &C., that the joint creditor
have quasi lien upon the partner
ship eiiccts-as dcrivativc subordi
nate right under and through tn
lien and equity of the partners,-Id
5. 361.
But as to the separate estate of tn
deceased partner at law, the creditor
n have no remedy. At law the sol
right of action is against the survi
vors, in favor of joint creditors. An
it was formerly held that joint cred
itors of the partnership had no clail
in equity against the separate estat
of the deceased partner, except whc
the surviving partners, were at III
time, or subsequently became inso
vent or bankrupt. But il is no
held that in equity, all partncrshi
debts are to be deemed joint an
several; and consequently the JOIN
creditors have in all cases right
proceed at law against the survivor
and an election also, to proceed
equity against the separate estate
the deceased partner, whether Il
survivors be insolvent or bankrupt
not. The consequence is that Il
joint creditors need not now wa
ry until the partnership affairs are wour
ch up, aud a final adjustment there
n made. But they may at once pr
N. coed, as upon a joint and sever
contract, in equity against the sep
rate estate of the deceased partnC
although in any such suit the su
viving partners must be made pa
ties as persons interested in takil
the accounts.
II seems to be clear, therefore. III
as against the separate estate of t
deceased partner, when the ioi
creditor cannot sue at law he may
once proceed in equity without sui
the surviving partner to insolven
or bankruptcy, and thus exhausti
n, the partnership assets or property
~ ~ the hands of the survivors, not |
81. cause he has a lien or quasi Il
against the estate of the dcceas
partner. but because in equity
remedy is joint aud several. and
cause at law he has no rene,
against the separate estate Of the {
ceased partner. But in case of a 81
against the surviving partner as /
representative of the joint estate,
suit on the legal demands. And a
legal demand alone. he cannot y
sent It IN court of equity. 4
second. lWcausc bav,no - Lon 4,