Had the present suit been instituted while the rights of the supposed trustee were merely those acquired by force of the assignment made by Drown to Shreve for the benefit of the creditors of Drown, and while the property had remained for this purpose unapplied to the payment of the debts due from Drown to such creditors, the trustee must have been charged. Wyles v. Beals, 1 Gray, 233. Edwards v. Mitchell, 1 Gray, 239.
But where the property, or the avails of the same, have actually passed over to the creditors, or been received by them, in discharge of their debts, it is too late for an individual creditor to attach the same by the trustee process. Vigilance is necessary here as well as elsewhere to prevent such transfer from being effectual by a change in the relation of the parties to it.
The case of Bowles v. Graves, 4 Gray, 117, while it charged the trustee for any property of the debtor in his hands .not yet applied in payment of a creditor, yet it exonerated the trustee from all liability as to all that had been thus applied. The further inquiry is then whether, at the time of service of the present writ upon the supposed trustee, he had any goods or effects of the debtor in his hands. It will be seen by the report of the case that the assignment was made in July 1855, and this process was served on the trustee in December 1856. Thus a period of
By these changes, the interest of Drown, which originally would have been attachable, was gone long before the service of the process upon Shreve; first, by the actual purchase of the property by the creditors, and payment therefor by application of the avails to the payment of Drown’s debts; and secondly, by the sale by the creditors to Shreve, upon an agreement to pay them therefor fifty per cent, on the amount of their debts. It is • true that the payment had not been fully made at the time of the service of the trustee process, and some of. the specific articles then remained in the hands of Shreve, and were afterwards transferred by him to the firm of Jones, Shreve & Brown. But as the interest of Drown in these articles had long before ceased, and had been transferred by other contracts than that of the original assignment, we think under all the circumstances there were no goods, effects or credits of Drown in the hands of Shreve, for which he can be charged as trustee.
We have not found it necessary to consider the further objection taken to the right of the plaintiff to attach these goods, that his debt except as to a very small amount accrued after the exe
For the reasons previously stated the court are of opinion that the trustee must be discharged. Trustee discharged.
