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KLEIN V. HOFFHEIMER, 132 U. S. 367 (1889)

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U.S. Supreme Court

Klein v. Hoffheimer, 132 U.S. 367 (1889)

Klein v. Hoffheimer

No. 113

Argued November 14-15, 1889

Decided December 9, 1889

132 U.S. 367


A creditor of an insolvent debtor, having full knowledge of the insolvency, secured for himself a transfer of a large part of the notes, book accounts and debts of the insolvent. Other creditors by a proceeding which was part of the same transaction secured their debts by attachments sufficient to absorb all the property of the debtor. A creditor not included in the arrangement sued the debtor and by garnishee process brought in the creditor who had obtained the notes, etc. Held (1) that the garnishee was bound to establish, as against the pursuing creditor, that his claim against the debtor was just and that he will receive from the assets no more than is reasonably necessary to pay it, and (2) if he is found liable at all as garnishee, he is liable to account not only for the money collected on the notes, accounts, etc., but also for the value of those which remain in his hands, at least to a sufficient amount to satisfy the debt of the pursuing creditor.

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Page 132 U. S. 368

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