Hunt v Jessel
| Jurisdiction | England & Wales |
| Judgment Date | 27 January 1854 |
| Date | 27 January 1854 |
| Court | High Court of Chancery |
English Reports Citation: 52 E.R. 40
ROLLS COURT.
[100] hunt v. jessel. Jan. 26, 27, 1854. A trading firm assigned their estate, stock, debts clue to the firm, &c., to trustees, upon trust for sale and distribution, with power to carry on the business; but the trustees did not thereby undertake to discharge the liabilities of the firm. The deed of assignment contained a proviso making it void, if the firm became bankrupt before a certain day. The Plaintiffs, who were at the date of the assignment creditors of the firm, afterwards became indebted to the trustees, who continued to carry on the business. The firm becoming bankrupt before the day named : Held, that the Plaintiffs had no right to a set-off; but that the result would have been different, if the Plaintiffs, instead of creditors, had been debtors at the date of the assignment, and had afterwards become creditors of the trustees. The Plaintiffs, Messrs. Hunt & Roskell, goldsmiths and jewellers, were in the habit of employing Messrs. Nock & Williams, working goldsmiths and jewellers, to set jewels and stones, and manufacture trinkets and chains ; and had large dealings with them in the purchase of jewellery. The accounts of the Plaintiffs, in respect of these transactions, were threefold-the gold chain account, the stone account, and the general account. The stone account consisted of jewels and precious stones, entrusted by the Plaintiffs to Nock & Williams, for the purpose of being set and returned to the Plaintiffs, and this account had been [101] last adjusted and settled on the 16th of January 1850, up to which period, all the stones, &c., supplied to Nock & Williams had been returned, and nothing remained due in respect thereof. Subsequently, the Plaintiffs, from time to time, supplied stones, &c., to Nock & Williams, a portion of which, amounting in value, as alleged by the Plaintiffs, to 481, 10s., was not returned, but Nock & Williams disputed the accuracy of the account. The general account was balanced at irregular intervals, and on the 20th of January 1851 the balance against Nock & Williams, and in favour of the Plaintiffs, was found to be 135, Is. 2d. Subsequent transactions took place between the two firms, in which the balance on the general account, together with that on the chain account, amounted to 348, 11s. 9d. in favour of Nock & Williams, for which the Plaintiffs gave them their acceptance, without deducting therefrom the 135, Is. 2d. previously due to them on the general account. In this state of things, the affairs of Nock & Williams having become embarrassed, the Defendant, Mr. Charles Martin, and two other creditors, caused a meeting of creditors to be called for the 3d of April, and at this meeting, it was the general opinion that the business, as conducted by Nock & Williams, should be discontinued, but that it might be advantageously carried on by other persons, on behalf of the general creditors; and it waa accordingly resolved that a deed of assignment of the property to trustees should be prepared, with power for them to carry on and arrange, or wind up the affairs, as they might think best for the interests of the creditors ; that the Defendants Charles Martin, Z. A. Jessel and James Evans, should be ap-[102]- 1JBEAV.103. HUNT V. JESSEL 41 pointed trustees; that Mr. Martin should be the manager of the concern, on certain specified terms, till the deed of assignment should be executed; that all advances made by him for the benefit of the eatate should be repaid in manner thereby mentioned; and that in the event of bankruptcy, the resolutions should become void. Mr. Martin, having undertaken the management, advanced large sums of money for the purpose of redeeming stock, which had been pledged by Nock & Williams at an undervalue, and part of this stock he afterwards sold, the Plaintiffs themselves having purchased and paid for a considerable quantity of it, with, as was alleged, full knowledge of the circumstances. By indenture dated 14th May 1851, Nock & Williams assigned all their joint and separate estate and interest, stock, goods, debts due to the firm, effects, &c., to Messrs. Jeasel, Martin and Evans, upon certain trusts, for sale and distribution of the produce among the creditors, with powers to enable them to carry on the business or...
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