Day v. Washburn - 65 U.S. 352 (1860)
U.S. Supreme Court
Day v. Washburn, 65 U.S. 24 How. 352 352 (1860)
Day v. Washburn
65 U.S. (24 How.) 352
Where creditors who were so upon simple contract debts filed a bill in chancery to set aside a deed made by the debtor as being fraudulent against creditors, and other creditors came in as parties complainants, the court below was right in ordering a pro rata distribution amongst all the creditors, none of them having a judgment or other lien at law.
The complainants who first filed the bill have no preference thereby over the other creditors.
Washburn made an assignment of his property to Keith for the benefit of his creditors.
Day and Matlock and Frothingham and Warner, citizens of Ohio and New York, filed a bill in the circuit court of the United States to set aside this deed as fraudulent. They alleged, as a reason for not suing him at law, that he had no property upon which a judgment would be a lien nor any that an execution would reach.
Other creditors of Washburn upon simple contract debts came in by a supplemental bill and applied to be admitted to a distributive share of the assets.
The court ordered them to be distributed equally amongst the parties to the record, from which decree Day &c. appealed to this Court.