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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 2, Page 120   View pdf image (33K)
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120 HIGH COURT OF CHANCERY.
THE CHANCELLOR:
The controversy in this case, relates to a policy of insurance
of the Merchants Fire Insurance Company for three thousand
dollars, dated in February, 1845, given by way of renewal to
the defendant, Benjamin R. Edwards, but originally to the said
Edwards, and his partner in trade, Barney Dilley, in 1844,
upon a stock of goods owned by them in the town of Cumber-
land, in Alleghany County.
A fire occurred in March, 1845, which destroyed goods,
covered by the insurance, to an amount exceeding the policy,
and as appears by the proceedings, consumed nearly all the
merchandise, constituting the stock upon which Edwards, then
the only party interested in the business, was trading.
Certain of the creditors of Edwards and Dilley, residing in
the city of Baltimore, upon the allegation of their insolvency
and of their purpose to secure a debt-due by them to the father
of one and the father-in-law of the other, at the expense of the
rest of their creditors by an assignment of said policy, filed a
bill in the equity side of Baltimore County Court, on the 15th
of Aprils-1845, praying and obtaining from that court, an in-
junction to prevent such assignment, or the giving any other
preference to this favored creditor, and also prohibiting the In-
surance Company from paying the policy. The bill also
prayed for the appointment of a receiver, to take possession
of the effects of the firm for the benefit of creditors generally,
and for the purpose of making a rateable distribution of such
effects among them. The bill likewise alleged, that by the
assignment proposed to be made to the creditor in question, the
means of the firm would be so far exhausted, that when judg-
ments should be obtained against the partners, they would have
no alternative but to apply for the benefit of the insolvent laws.
The defendants to this bill were the partners, Edwards and
Dilley, and the Fire Insurance Company, and upon the com-
ing in of the answers, and upon the transfer of the proceedings
to this court, the injunction was dissolved. The order dis-
solving the injunction was affirmed on appeal, and afterwards
and without further proceedings the bill was dismissed by the
complainants.

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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 2, Page 120   View pdf image (33K)
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