Cullen v. Veasey

Citations

• 28 Del. 588
• 5 Boyce 588
• 95 A. 655
• 1915 Del. LEXIS 52

Syllabus

<p>1. Estoppel—Claim in Judicial Proceeding—Insolvency.</p> <p>Where the answer of a president of a corporation to a bill in equity for the appointment of a receiver admitted the insolvency of his company as of a certain date, in an action by the corporation's trustee in bankruptcy against the president’s wife to recover the price of lumber alleged by her to have been paid for by her husband's releasing to the corporation á portion of its debt to him in consideration of her payment of the price of the lumber to him, such husband, the president, could not be heard to deny his knowledge of the receivership proceedings under which the company upon bill and answer was found to be insolvent and himself appointed a receiver.</p> <p>2. Husband and Wife—Agency of Husband—Notice to Wife.</p> <p>Where the president of a lumber company acted as his wife’s agent in transferring lumber and building materials to her in consideration of a credit to be given the company in part payment of its alleged indebtedness to him, his wife paying him for the lumber, and had reasonable ground to believe that the company was insolvent and that the action would result in a preference to himself, his wife, as his principal, was chargeable with his knowledge in the transaction of the business he had in charge.</p> <p>3. Bankruptcy—Preference—Voidability.</p> <p>Where the president of an insolvent lumber company within four months preceding the filing of a petition in bankruptcy effected a preference to himself by transferring the company’s lumber to his wife in consideration of credit given the company by him in part payment of its indebtedness to him, his wife paying him for the lumber, such preference was voidable by the trustee in bankruptcy, who could recover the value of the lumber from the wife.</p>