Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-12-14
I COURT ! ] |: j DECISIONS.
Notes of Cases Recently Decided;
Which are Of Interest to
Our People.
D'cEsTED BY w. 3. MARTIN.
Exclusively for virgin.an-Pllot.)
HURST ". LECKIE.

HURST ". LEcKIE.
Supreme Court of Appeals of Virginia.
November 16, 1890.
AN ASSIGNMENT FOR BENEFIT OF
CREDITORS IS VOID IF ANY
BENEFIT IS RESERVED TO THE
GRANTOR.
SUCH DEED IS NOT VOID BECAUSE
1T GIVES THE TRUSTEE POWER
TO CONTINUE BUSINESS FOR A
LIMITED TIME, OR TO PURCHASE
FOR CASH GOODS NECESSARY,
OR BECAUSE 1T REQUIRED a
RELEASE FROM THE CREDI-
TORS. OR BECAUSE THE TRUS-
TEE EMPLOYED GRANTER AS A
SALESMAN, OR BECAUSE GRAN
TER FAILED TO DELIVER TO
THE TRUSTEE SOME OF THE
PROPERTY CONVEYED. A GER
TIFICATE OF ACKNOWLEDGES
MENT OF A DEED MADE BY "a
COMMISSIONER IN CHANCERY
OF THE CITY OF BUENA VISTA"
is GOOD. THERE BEING BUT ONE
COURT IN SAID CITY.
THE OFFICIAL CHARACTER OF AN
OFFICER TAKING SUCH AC-
ACKNOWLEDGEMENTS MUST APP
PEAR ON THE CERTIFICATE,
AND CANNOT BE SHOWN BY
PAROL.
The question involved in this case
was the validity of deed of assign
ment made by Lecleic to White, trustee
20 secure his creditors. The deed au-
thorlzed the trustee if he thought best
10 continue the business for q year and
10 puy such goods for cash as might be
necessary: 1t also authorized him ir. at
e Tue emu OF the year. he thought 1t best
lor the creditors and a majority of
them did not object to continue the
business for another year. otherwise to
sen ut auction. The trustee employed
me Grantor as salesman. The lower
court held the deed valid and plaintiff
appealed
The court says:
1t Is beyond question that to reserve
any benetit to the grantor himself, or
to introduce limitations and contjn@en.
cies such as Will give him control over
the property or Its proceeds, SO as TO
ehapie MN, in effect. TO defeat the con-
Veyahce; or TO reserve the power to re-
woke IT.; or 10 stipulate for the main
senance or the grantor or his family. or
iur ,, ms employment at fixed salary,
VIII render the deed fraudulent
II is not perceived that the deed con-
tains any reservation whatever for the
benefit OF the grantor. No interest or
right IN or to the property, or possess
sion OF or control over its proceeds Il.
reserved to him.
Nor does the law condemn as vicious
ana illegal the provision Of the deed
giving the trustee the discretionary
power 10 run and operate the business
LOT year. II he deem 1t wise to do so.
having In View the interest of the
creditors. 1t is not mandatory and does
not obilgc him to carry 1t on for
single day Nor Is the deed rendered
fraudulent by the further provision
empowering the trustee TO make such
purchases OF additional stock for cash
from the proceeds of his operation of
the business as will aid In keeping ND
me business and disposing of the other
stock TO q better and more protitabla
advantage. Nor does the further fact
mat the trustee employed the debter as
MS chief saleman to dispose of the stock
OF merchandise do So
II is settled law that where n debtor
STIMULATES in his deed of assignment for
n release from his debts by his credl-
Tors, he must convey his whole estate
In the case under consideratT0n- ire
debtor conveyed his entire estate. nv
The express terms of his deed he con-
vcyed everything and omitted nothing
except what is allowed to poor debtors
and exempted by law from subiection
to the payment of debts. A deed of this
character. although 1t stipulates for
release of the debtor by his creditors.
under numerous decisions of this court.
Is entirely valid.
IT the debtor failed to turn over or
deliver up 10 the trustee any properly
of any kind that would not invalidate
the deed of assignment The title TO
all the property was absolutely vested
In the trustee by the conveyance. and
he might recover from the debtor or
other person any that might be with
held from him.
a still further objection was made to
the deed that the certificate of ac-
acknowledgement does not show that the
deed was duly acknowledged for admis-
sion TO record.
The acknowledgement must be ac-
COTUD TPV THEM AIT