Ker v. Creditors of Sutherland

Alexander Sutherland of Kinminity granted a bond to the late Alexander Gordon of Garty. Gordon used this bond as collateral in dealings with other persons. Pursuer Elizabeth Ker's late husband, James Ker, was one of Gordon's creditors. Ker sought to collect on the bond, and he obtained for himself, and as assignee on behalf of certain other persons, a decree of adjudication against Alexander Gordon's son. Elizabeth Ker sought to collect on the bond on her late husband's behalf. Creditors of Sutherland, including George Dunbar, also sought to collect on the bond. At issue was whether Ker's claim could be treated pari passu (on equal footing) with the claims of Sutherland's creditors, such George Dunbar. Elizabeth Ker maintained that her husband's adjudication was timely, within a year and a day of another creditor's adjudication, so she should be ranked in her due order of preference. The creditors of Sutherland maintained that they had priority over Ker.