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Alexander's British statutes in force in Maryland. 2d ed., 1912
Volume 194, Page 19   View pdf image (33K)
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9 H. 3, CAP. 18, STATE'S PREFERENCE. 19
The Act of November session 1785, ch. 80, passed 11 March 1786, pro-
vided in its 7th Section that no creditor should be entitled to any priority
or preference, except judgment creditors, and further directed the executor
to advertise in any of the United States where any creditors of the de-
ceased are supposed to reside for such creditors to appear &c. Mr. Pinkney
in his notes in the case of Fitzsimmons and Redgate, 3 H. & McH. 177
says that this clause directs a division of assets in the hands of the ex-
ecutors equally between all creditors without priority or preference, and
the intention was to put all citizens of the United States on the same
footing.3
These latter three Acts were brought to the notice of the Court in the
above cited case of Murray v. Ridley's Administratrix, There Ridley the
intestate died on the 13th November 1789. He was indebted to the State
on simple contract subsequently to the passage of the Act of 1785, to
others, citizens and non-residents, on specialty and simple contract, and to
one Vanderstigen, a foreigner, on bond dated in July 1772. The opinion of
the Court was asked whether the State was entitled to a preference in
payment over all creditors on simple contract or on such specialty debts.
And the Court said that the State by the common law is entitled to a pre-
ference of all debts unless on record due by Ridley. It had been pre-
viously decided by the same Court in Hollingsworth v. Patten's Adminis-
tratrix, 3 H. & McH. 125, that if judgment is obtained against one in his
life-time, his executor is bound to satisfy such judgment in preference to
a debt on specialty passed to the State after such judgment rendered. And
the general doctrine of the State's preference had on the other hand been
determined in the State v. Rogers and wife, 2 H. & McH. 198, where a sci. fa.
issued under the Act of 1781, ch. 23, (to secure the redemption of bills of
credit emitted by the State) on the 31st March 1786 upon a bond to the
State dated 4th February 1782, in which the ancestor of the wife was
obligor. The defendants pleaded that the ancestor was indebted to a third
party for which debt he gave his bond on the 4th April 1785, and on the
17th September 1785 suit was brought on the latter bond which was then
depending. Judgment was given for the State on demurrer in May term
1786 on the ground that it had a preference. And in Contee v. Chew's Ex-
ecutor,* 1 H. & J. 417 it was determined that where the State and an 15
individual have judgments against a deceased person, in payment of his
debts the judgment of the State has a preference. In this case the de-
ceased's estate was insolvent, after satisfaction of the State's claim. And
see Green's Estate, 4 Md. Ch. Dec. 356.
The doctrine thus laid down, that the State has a priority in the dis-
tribution of the property of the debtor requiring the debt of the State to
be first paid where the individual creditor has no antecedent lien overreach-
ing it, has been recognized in all subsequent cases, Davidson v. Clayland, 1
H. & J. 546; State v. Bank of Md. 6 G. & J. 205; Smith v. State, 5 Gill 45;
State v. Mayor and City Council of Baltimore, 10 Md. 504; Hodges v. Mulli-
3 Cf. Code 1911, Art. 93, sec. 115.

 
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Alexander's British statutes in force in Maryland. 2d ed., 1912
Volume 194, Page 19   View pdf image (33K)
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