Frank v. Tolman

Citations

• 75 Ill. 648

Syllabus

<p>1. Jurisdiction—to determine the person entitled to receive pdyment of debt due from, a bankrupt. Where an insurance company is adjudged a bankrupt, and its assets placed in the hands of an assignee by proceedings in the Federal court, it seems that court has jurisdiction to determine the person entitled to share in the distribution upon a policy of insurance, and to determine whether an assignment of such policy is voidable on the ground of fraud practiced by the assignee upon the original holder; but when the United States court consents, the State courts may also take jurisdiction.</p> <p>2. Fraud—as between vendor and vendee—representations. Where the purchaser of a policy of insurance under which a loss had occurred, and which policy was issued by a company then in bankruptcy, and its affairs were so confused that no one except its officers knew or could know its condition, represented to the owner that he had been informed that the company could not pay more than twelve and a half per cent of its liabilities, and offered to give eleven per cent of the sum due on the policy, and it appeared that the owner did not rely upon such representation, but took several days to inform himself and decide whether to accept the offer, and then accepted the same, and it also appearing that claims on the company were then selling-at ten cents on the dollar, and it afterwards turned out that the company was able to pay from sixty to one hundred per cent of its liabilities, it was held, that the facts would not warrant a court of equity in setting aside the sale for fraud, at the suit of the vendor.</p> <p>3. Mistake—as to value of thing sold, no ground for setting aside a sale. It is not every mistake in the sale of personal property or choses in action, especially where it relates alone to its value, which will call into operation the equity powers of the court. The fact that a claim on an insolvent corporation was believed, by both the vendor and purchaser, to be worth no