Department Store Co. v. Gauss-Langenberg Hat Co.

Citations

• 17 N.M. 112
• 125 P. 614

Syllabus

<p>SYLLABUS (BY THE COURT).</p> <p>1. The denial oí. knowledge or information sufficient in form a belief as to the indebtedness and plaintiff’s demand for payment is no denial at all; the facts being those which defendant must necessarily know.</p> <p>2. Where the pleadings admitted that defendant corporation was unable to meet its obligations as they matured, its insolvency was admitted.</p> <p>3. Under Laws 1905, chap. 79, sec. 72, providing that whenever a corporation shall become insolvent, or suspend its ordinary business from want of funds, any creditor or stockholder may apply for an injunction and a receiver, and a receiver shall be appointed unless it shall appear that the corporation is about to resume its business with safety to the public and advantage to the stockholders, while mere inability to meet pecuniary obligations as they mature will not warrant a receivership, it must appear that the insolvency is of such a character that the corporation will not be' able to resume its business with safety to the public and advantage to its stockholders; but where a corporation is hopelessly insolvent, and is unable to procure insurance on its property, and there have been two fires in its stock of merchandise, the appointment of a receiver, is justified.</p> <p>4. In a proceeding for the appointment of a receiver and issuance of an injunction to restrain an insolvent corporation from doing business, where the defendant’s answer admitted its insolvency and inability to pay a large amount of debts, allegations that part of the indebtedness mentioned in the complaint was illegal were immaterial, constituting no defense.</p> <p>5.In a, proceeding for the appointment of a receiver and issuance oí an injunction to restrain an insolvent corporation from continuing its business, where the corporation admitted its insolvency, allegations that the suit was maliciously instigated by one of the creditors of the corporation were immaterial, constituting no defense.</p> <p