Phillips v. Verbeke

• Decision Date: 22 September 1921
• Docket Number: 16452.
• Citation: 200 P. 1091,117 Wash. 173
• Court: Washington Supreme Court
• Parties: PHILLIPS v. VERBEKE et al.

200 P. 1091

117 Wash. 173

PHILLIPS v. VERBEKE et al.

No. 16452.

Supreme Court of Washington

September 22, 1921

Department 2.

Appeal from Superior Court, Spokane County; David W. Hurn, Judge.

Action by B. C. Phillips against J. C. Verbeke ahd G. L. Smith and wife. From judgment for plaintiff, the last-named defendant and wife appeal. Affirmed.

W. C Donovan, of Spokane, for appellants.

Clyde H. Belknap, of Spokane, for respondent.

TOLMAN J.

In January, 1920, respondent brought suit against the defendant J. C. Verbeke, upon a cause of action alleged to have arisen on December 2, 1919. He subsequently recovered judgment in the full amount demanded, and a portion was thereafter collected; but the judgment remained unpaid, unsatisfied, and in full force for upwards of $200. In March, 1920, the defendant Verbeke sold to appellants a grocery store comprising the stock of merchandise and fixtures, and thereafter, in a further effort to collect the judgment respondent caused a writ of garnishment to issue directed to appellants. In due time appellants answered the writ, denying that they or either of them were indebted to the principal defendant, or that they had in their possession or under their control any property belonging to him. The respondent contested the answer of the garnishees, alleging that the defendant Verbeke had been engaged in the retail grocery business and became and was indebted to respondent in the sum of $300; that while the action to recover that amount was pending in the superior court Verbeke sold and delivered his stock of merchandise in bulk to the garnishee defendants without complying with the terms of the Bulk Sales Law, or making an affidavit as to creditors which the statute requires, and that Verbeke's creditors were not paid out of the purchase money or at all; alleging that the sale to the garnishee defendants was therefore fraudulent and void, and that the value of the merchandise so transferred was approximately $1,500. A demurrer to this reply was overruled, and upon a trial the lower court found for the respondent in accordance with the allegations of his reply, and entered judgment against the garnishee defendant in the sum of $219.78, with interest and costs, from which they appeal.

Appellants contend for a construction of the statute (Rem. Code 1915, §§ 5296-5300) relating to sales of merchandise in bulk which will limit the effect to those creditors...