Taylor v. Cummings

Taylor v. Cummings

Where an assignment is set aside under the Statute of Elizabeth, moneys paid to preferred creditors or property disposed of in good faith under the assignment cannot be recovered and persons taking under the deed are not personally liable; the statute merely avoids the deed and leaves creditors to their ordinary remedies (judgment, execution, garnishment).

Citation
(1897) 27 SCR 589
Parties
Plaintiff/appellant: Robert Taylor and others; Defendant/respondent: Selden W. Cummings; Defendant/respondent: People's Bank of Halifax
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 June 1897
Procedural Posture
Appeal From Supreme Court of Nova Scotia; Action to Set Aside Deed of Assignment for Benefit of Creditors Under Statute of Elizabeth / Hearing on Appeal Before Supreme Court of Canada; Judgment Disposing of Appeal
Outcome
Appeal dismissed with costs; judgment of Supreme Court of Nova Scotia affirmed.
Legal Topics
Assignment for Benefit of Creditors, Preferential Payment, Statute of Elizabeth, Voidable Transactions, Liability of Assignee, Fraudulent Preference
Source Language
English
Contract Insolvency Equity Property Assignment for Benefit of Creditors Preferential Payment Statute of Elizabeth Voidable Transactions +2 more

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Parties

Robert Taylor and others

Plaintiff/appellant

Selden W. Cummings

Defendant/respondent

People's Bank of Halifax

Defendant/respondent

Procedural Posture

Appeal From Supreme Court of Nova Scotia; Action to Set Aside Deed of Assignment for Benefit of Creditors Under Statute of Elizabeth / Hearing on Appeal Before Supreme Court of Canada; Judgment Disposing of Appeal

Legal Issues

  1. 1 Whether a deed of assignment voidable under the Statute of Elizabeth permits recovery of moneys paid to preferred creditors in good faith
  2. 2 Whether trust property disposed of in good faith under such an assignment can be recovered from persons who received it
  3. 3 Whether persons holding under the deed can be held personally liable for moneys or property received

Ratio Decidendi

Where an assignment is set aside under the Statute of Elizabeth, moneys paid to preferred creditors or property disposed of in good faith under the assignment cannot be recovered and persons taking under the deed are not personally liable; the statute merely avoids the deed and leaves creditors to their ordinary remedies (judgment, execution, garnishment).

Court Disposition

Appeal dismissed with costs; judgment of Supreme Court of Nova Scotia affirmed.

Orders

  • Appeal dismissed with costs to respondents
  • Judgment of the Supreme Court of Nova Scotia affirming dismissal of plaintiffs' appeals is affirmed