Holloway & McRaney Co. v. Brame

Citations

• 83 Miss. 335

Syllabus

<p>1. COPARTNERSHIP. Corporation. Bankruptcy. Fraudulent Conveyance,</p> <p>Where a copartnership transferred all of its assets to a corpora- ■ tion formed to carry on the business in which the copartnership had been engaged, the stockholders being the late partners,interested in the same proportion as they had been in the co-partnership, and the corporation assumed the debts of the co-partnership, it is liable to the creditors of a bankrupt on account of a fraudulent conveyance by him to the copartnership, shortly preceding its formation, to the same extent as the partners.</p> <p>2. Same. Parties to suit.</p> <p>In a suit by the trustee of the bankrupt to enforce such liability the members of the copartnership are not necessary parties, since the judgment against the corporation affords them protection against any further liability to the bankrupt’s creditors.</p> <p>3. Same. Fraud in fact. Consideration. Credit to fraudulent purchaser.</p> <p>Where a sale by an insolvent, within, four months of bankruptcy was fraudulent in fact, the purchaser is liable for the value of the property sold without credit on account of the consideration for the fraudulent sale.</p>