121 Ala. 89 | Ala. | 1898
— This is a creditors’ hill filed by the individuals composing the firm of Torrey, Curtis & Tirrell, and others, against the Birmingham Shoe Co., a corporation, Steiner Bros., a corporation, and others. . Complainants’ debts were due prior .to the transactions ■between said corporations which are complained of. .The bill alleges that the Birmingham Shoe Co.-.was indebted to the complainants in the several .sums stated, >and that said Shoe Company being hard pressed :by its creditors collusively and fraudulently confessed a judg- ■ ment to Steiner Bros, for an amount equal lo the value ' of all its assets, that the pretended debt upon which said "judgment was confessed was simulated and that the com fession was'made, the property immediately levied upon and sold and purchased by Steiner Bros., with the intent , on, the part of the debtor and Steiner Bros, to hinder, delay and defraud complainants and other creditors of the said Shoe Company. It is further alleged that Bach, ■the manager of the Shoe Company, was without authority to confess said judgment, and that the same for "this reason also is void. ' '..
There is an alternative averment in the bill, but it has no bearing on the question now presented.
The prayer is that Steiner Bros, be held as trustees in invitum of the property purchased by them at the execution sale, and be required to account to complainants for the value thereof, etc. The respondents moved to dismiss the bill for want of equity. That motion was denied, and from the order overruling it, this appeal is prosecuted.
The theory upon which respondents based their motion is thus stated by their counsel: “The ground on which the motion to dismiss the bill for want of equity was predicated, is that by the averments of the’ bill Steiner Bros, were the owners of the property of the Birmingham Shoe Co. and hence complainants could not have been prejudiced by any dealings which Steiner Bros, may have had with reference to such property. And it appears, moreover, from the averments of the bill, that Steiner Bros, were the Birmingham Shoe Co., and that they operated the business for their own benefit under that name, while the nominal directors and stockholders of said Birmingham Shoe Co. owned no real interest therein, but were in fact mere employes of Steiner Bros.”
It is clear, of course, and not denied for appellants that the bill without the averments of the paragraph we have quoted states a perfectly good case of equity jurisdiction under section 818 of the Code. And it is thoroughly well settled that the existence of an adequate remedy at law in a particular case does not bar the creditor of his remedy by bill in equity to reach and subject property or the proceeds of property which has been fraudulently conveyed by his debtor, by holding the transferee answerable for the property or its value. Nor is it of consequence that the bill may show that Steiner Bros’, dealings with this property could not prejudice the complainants for that it belonged to them
Affirmed.