Jones v. Syer

Alvey, J., delivered the opinion of the Court. If the property embraced in the assignment to Jones, of the 1st of February, 1878, really belonged to Kimball, and the assignment was void, as contended by the appellees, the latter were clearly entitled to recover. The assignment professes to be for the benefit of creditors generally, and does not exact releases from the creditors as a condition upon which they are allowed to share in the proceeds of the sales of the property assigned ; hut, by the express terms of the deed, the trustee, who is the garnishee in this case, is authorized and empowered “ to carry on and conduct said business in his discretion, for such time as in his judgment it shall bebeneficial to do so, or to sell all of said goods and stock in trade and property, ²¹⁶ at such times, in such manner, and for such prices, as he may deem proper, and apply the proceeds,” &c. It is obvious, the certain effect of this clause would be to hinder and delay creditors ; and as against them such provision renders the deed utterly void.

It is an attempt on the part of the debtor to place his property, for an uncertain and indefinite period, beyond the reach of his creditors, and to make their rights in a great measure dependent upon the uncontrolled discretion of a trustee of the debtor’s own selection. The law will tolerate no such attempt, but treats the act as a fraud upon creditors, and the instrument of conveyance as simply void as against them. The cases in this Court of the American Exchange Bank vs. Inloes, Garn. of Turnbull & Co., 7 Md., 380 ; Same Case, 11 Md., 173 , and the recent case of Maughlin vs. Tyler, 47 Md., 545 , are, in all