Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-05-10

Special 20 the Register.
Parkersburg. w. Va, May "a case
of great interest TO the legal profession
and TO business men has just been de-
cided by the Supreme Court of West
Virginia on appeal from the Circuit
Court of Peasants county. The case
was that Of C. J. Conway, administrator,
VS.. James Stealey e. al, defendants;
Ella G. Stealey, appellant and warrants
a brief summary Of the facts and prin-
ciples involved. which is as follows
A co-partnership was entered into by
James Stealey and H. NJ. Brookman,
and they purchased Jointly from Joseph
Porter a large stock Of goods at 81.
Marys. Peasants county. Notes were
executed for the purchase money TO
Porter and a deed of trust was given on
the stock TO secure the same, and in adj
dition Ella G. SJealey and r. P Brook
man. wives of said partners, became
sureties on said notes. and gave deeds
Of trust on their separate property, also
TO secure said notes, 10 Porter. For
two years the firms business was con-
tinued. the stock of goods was in
creased by additions thereto. The part
uers. however. were not indebted at the
time Of the purchase Of said stock. Then
n. p. Brookman disposed of his inter-
est 10 James Stealey. the other partner
TO the business. with the agreement that
the firms debts should be paid by
Stealev. The business was conducted
by Stealey alone for some time and he
incurred debts and finally left the State.
The stock was attached by the individ-
uaI creditors. and a receiver was ap-
pointed who took charge of the stock
and sold il. and by the DEGREES of Judge
Arthur /. Foreman the deed of trust on
the stock was held invalid and the pro-
oeeds of said stock was paid &c the in
dividual creditors. From these DEGREES
Ella G. Stealey appealed to the Supreme
Court through her attorneys, J, w. Van
devort. Of this city and ]. Frank Barron.
Of Peasants county. and said DEGREES
were completely reserved. The syllabi
of the case is as follows;
/. 4 deed of trust duly recorded,
conveying a stock of goods TO secure
the purchase money thereof is valid
as 10 subsequent creditors Of the pur-
chasers. even though there is a parol
Arrangement by which such purchasers
are TO hold possession Of, sell and
replenish such stock Of goods, and after
paying necessary expenses. apply the
proceeds to the extinguishment Of the
trust lien.
.. Partnership assets must be first
applied to the extinguishment of part
nership debts. and a partner has no
leviable interest therein in so far as
his individual debts are concerned, I'M
iii the partnership debts are fully salts
fed.
g. A sale to a partner, Of the partner
ship effects i'm consideration of payment
Of the partnership Indebtedness is on
consideration not deemed valuable in
law. and is invalid TO give the purchas-
ing partner any separate leviable inter-
est therein 10 the injury or detriment
of the partnership creditors.
IA person who becomes surety for
a partnership debt in 50 far as such
suretyship is concerned is entitled to
be treated as a partnership creditor.
While apparently this decision re-
verses some former decisions in this
State by its Supreme Court, y care
ful examination Of the opinion shows
il is sound law and is really consistent
with former decisions.