Casanas v. Audubon Hotel Co.

Citations

• 124 La. 786
• 50 So. 714
• 1909 La. LEXIS 545

Syllabus

<p>1. Committee Placed in Charge of Business.</p> <p>The debtor was embarrassed financially-He placed a committee in charge of his business, to be conducted by this committee for the benefit of his creditors.</p> <p>2. Knowledge of Creditors.</p> <p>All the creditors consented, except a few, who did not. They had knowledge of the meeting held and of the agreement made between the debtor and nearly all of the creditors.</p> <p>3. Parties (§ 5*) — Action on Behalf of Another.</p> <p>It does not appear by the terms of the agreement, nor by the minutes of the proceedings which authorized the agreement, that the-debtor transferred the right plaintiffs claim. .</p> <p>4. Purpose of Suit.</p> <p>The plaintiffs instituted this suit to annul and set aside the subscription to stock taken by their debtor in a corporation, known as the “Audubon Hotel Company, Limited.”</p> <p>5. Corporations (§ 38*) — Amendment of Charter — Consent by Stockholder — Estoppel.</p> <p>The debtor, Fabacher, is estopped, and plaintiffs as well.</p> <p>'6. Assignments for Benefit of Creditors (§ 268*) — Agreements Among Creditors— Effect on Creditors Not Parties — Third Persons.</p> <p>If the creditors, who took part in the meeting which resulted in an agreement, are concluded, it does not bind the defendants, who did not take part in the meeting.</p> <p>7. Corporations (§ 84*) — Amendment of Charter — Change of Purpose.</p> <p>The change or amendment made to the original charter, to which the debtor consented, was not a radical change having the effect of releasing the debtor from his contract as a subscriber to shares of defendant company.</p> <p>8. Other Points' Not Decided.</p> <p>Other grounds of defense are not decided, as the issues are disposed of- without having to decide them.</p> <p>(Syllabus by the Court.)</p>