Camden National Bank v. Fries-Breslin Co.

Citations

• 214 Pa. 395
• 63 A. 1022
• 1906 Pa. LEXIS 670

Syllabus

<p>Promissory notes — Affidavit of defense — Res adjudicata — Fraud—Dividend — Corporations.</p> <p>In an action against a corporation on a promissory note given for dividends which had been adjudicated by the courts as having been regularly declared, an affidavit of defense is insufficient which avers that the dividends had not been earned, but had been made to appear as due by means of fictitious inventories. Until the judgment establishing the regularity of the dividends has been opened, modified or reversed the defendant company can make no defense in a suit to collect a note given in payment of such dividends. The fact that the defendant company had been enjoined from paying to the payee of the note certain alleged profits, is immaterial as long as the judgment declaring the regularity of the dividends stands unimpeached.</p> <p>Promissory notes — Note held as collateral.</p> <p>In an action on a promissory note held as collateral security, the holder is entitled to judgment for the whole amount due on it with liability to account for the surplus to the owner of the note.</p>