Frank v. Michigan Paper Co.

Citations

• 179 F. 776
• 30 L.R.A.N.S. 623
• 1910 U.S. App. LEXIS 4703
• 30 L.R.A (N.S.) 623

Syllabus

<p>1. Bankruptcy (§ 423*) — Partners—Effect of Discharge.</p> <p>Under Bankr. Act July 1, 1898, c. 541, 30 Stat. 550 (U. S. Comp. St. 1901,- p. 3428) § 17, as amended by Act Cong. Feb. 5, 1903, c. 487, § 5, 32 Stat. 798 (U. S. Comp. St. Supp. 1909, p. 1310), providing that a discharge in bankruptcy shall not release the bankrupt from judgment in actions' for fraud or obtaining property by false pretenses or representation, etc., a false representation by one partner by means of which property was obtained by the firm, will be imputed to the other partners to the extent of holding them civilly liable for the debt, and their discharge in bankruptcy will not discharge their liability for such debt.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 818; Dee. Dig. § 423.*]</p> <p>2. Bankruptcy (§ 407*) — Partners—Right to. Discharge.</p> <p>Where, after a firm had been adjudged an involuntary bankrupt, one of the partners filed an individual voluntary petition in bankruptcy and was adjudged a bankrupt, the fact that one of the other members of the firm had made false representations in writing concerning the credit of the firm, and by virtue thereof had obtained goods for the firm on credit, in which representations the petitioning partner did not participate, such representations were unavailable to bar the petitioning partner’s right to discharge, though the discharge, when granted, might not be a defense to the petitioning partner’s liability for the debts contracted on the faith of such representations.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 760; Dec. Dig. § 407.*] ■</p>