Long v. Hancock, , 12 S.C.R. 532 (1885)

Supreme Court of Canada

Long v. Hancock, 12 S.C.R. 532

Date: 1885-11-16

William D. Long and George H. Bisby (Plaintiffs) Appellants;

and

Edward H. Hancock, J.B. Fairgrieve and John Hallam (Defendants) Respondents.

1885: May 19; 1885: November 16.

Present: Sir W.J. Ritchie C.J., and Fournier, Henry, Taschereau and Gwynne JJ.

ON APPEAL FROM THE COURT OF APPEAL FOR ONTARIO.

Interpleader issue-Insolvent Co.-Chattel mortgage by-Preference over other creditors-Intention to prefer-R.S.O. ch. 118.

A company being indebted to L. & B. in a large amount, and believing that their charter did not allow a mortgage on their property to secure an overdue debt, made an agreement to give such mortgage for an advance of a larger sum, agreeing to return the amount of the debt to the mortgagees. At the time of this transaction the company believed that by getting time from this creditor they would be able to carry on their business and avoid failure. This hope was not realized, however, as the company were subsequently compelled to stop payment, and the above respondents, who were also creditors, obtained judgments and issued executions against the goods secured by the mortgage, and on an interpleader issue brought to try the title to such goods, the chancellor hearing the cause gave judgment for the execution creditors, and the Court of Appeal sustained that judgment by a division of the court. On ...

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