Bank of Woodland v. Schwab

Citations

• 130 Cal. 282

Syllabus

<p>Insolvency—Assignee’s Sale—Purchase of Firm Assets by Insolvent Partner — Enforcement of Claim Against Copartner.—A member of a firm, after an adjudication in insolvency of the firm and its members, and the surrender of the firm and individual assets, may enter into any legitimate business, and may make a lawful purchase for cash, not shown to be any part of the insolvent effects, of the books of account in favor of the firm, sold at public auction by the assignee, and may thereafter enforce a claim in favor of the firm against the estate of the insolvent copartner, and may, as a creditor thereof, claim and receive a pro rata share out of his individual estate.</p> <p>Id.—Fruits of Purchase — Restitution of Purchase Money.—It would be highly inequitable to deprive the member of the insolvent firm who made the purchase of the books of account at public auction of the fruits of his purchase, without restoring to him the amount of the purchase money paid therefor.</p>