Delta Bank v. Oliver-Finnie Grocery Co.

Citations

• 70 Miss. 868

Syllabus

<p>1. Fraudulent Conveyance. Notice to vendee. Collusion. Trust.</p> <p>Where an insolvent merchant, through the, co-operation of the president of a bank, in falsely representing him to be solvent, was enabled to make unusually large credit purchases of goods, and soon thereafter sold all of his assets to the bank, in consideration of a small sum in cash and a large debt to it, and the president, who acted for the bank, knew that the purpose of the debtor, throughout, was to defraud his other creditors, the sale will be void, and, on a bill filed by such other creditors, the bank will be held a trustee for complainants of the property so acquired.</p> <p>2. Same. Fraudulent vendee,. Measure of liability. Creditors’ bill.</p> <p>In such case, it is error to render a decree against the bank absolutely for the price agreed on for the goods between it and the debtor. It is answerable only for the fair value of the assets so acquired and disposed of by it, and the property still on hand should be sold under the decree.</p> <p>3. Fraudulent Vendee. Bank. Personal liability of agent.</p> <p>it is also error in such case to render a decree against the president of the bank'personally. Ilis acts are to be deemed the acts of the bank; it, , having received the benefit, should alone be charged as trustee.</p>