Legal Subject: Sequestration

Case Date Legal Subject Abstract
Cowan v. Farie and Others 1781 Sequestration Robert Cowan and Company, creditors on a bill accepted by John Farie, sought to have Farie’s movable effects sequestrated. Cowan & Co. argued that sequestration was appropriate when a debtor’s movable estate was the subject of a poinding or when the debtor was imprisoned; both criteria applied to Farie. The respondents opposed sequestration on several grounds, including the following: (1) Farie received no value for the bill; (2) Farie was under interdiction when he accepted the bill; and (3) Farie’s movable estate was exhausted by higher-ranked creditors. When the case was argued, the parties agreed to suspend the proceeding while the respondents found caution for Farie’s debt. However, after a dispute about the form of the caution, Cowan & Co. submitted a second petition for sequestration and expenses.
Francis Garbet and Company v. Their Creditors 1772 Bankruptcy, Sequestration Francis Garbet, Charles Gascoigne, and Peter Capper entered into a partnership under the name Francis Garbet and Company. The partnership was in the business of conveying goods to and from London and other places along the coast of England. Due to financial difficulty, Gascoigne applied to the court to sequester the whole personal estate belonging to the partners and to appoint a factor to manage the partnership's property so that timely payments could be made to the partnership's creditors. George Home was appointed factor on the sequestration. Gascoigne then sought to withdraw or amend the application by claiming that he was unaware of the effect of this sequestration under Scots law, having received his formal education and training in England. Under the law of Scotland, creditors of a company can claim not only the company's property, but the personal property of the individual partners as well. Under the law of England, in contrast, creditors of a company can only draw on the personal property of the individual partners after private creditors of the individual partners have been satisfied. The partners of Francis Garbet and Company sought to sequester the partnership's estate only, not the individual estates of the partners.
Naismith v. M'Morrow 1783 Sequestration, Factor This case was about competing claims to rents on the estate of William Maxwell of Ardwell. In 1780, Maxwell’s tenants initiated a proceeding to prioritize various claims made by Maxwell’s creditors. As part of that proceeding, the Lord Ordinary sequestrated the disputed rents and appointed Thomas Naismith as factor. However, in 1781, two of Maxwell’s tenants initiated a second proceeding regarding their rents. In the second proceeding, Elizabeth M’Morrow obtained a preference based on an arrestment she had served on the tenants. Naismith challenged M’Morrow’s preference. However, M’Morrow responded that the earlier sequestration was improperly obtained and that, in any case, her arrestment predated the sequestration.