Jones v. Barnes

Citations

• 107 Miss. 800
• 66 So. 212

Syllabus

<p>1. Bankruptcy. Property of bankrupt. Failure to schedule. Discharge. Effect. Effect of pending actions. Dismissal of appeal. Oorporation. Sale of stock. Fraud. Vacation. Ratification.</p> <p>Property belonging to the estate of a bankrupt, though not scheduled, will pass to the trustee upon adjudication of bankruptcy, and does not revest in the bankrupt by his discharge.</p> <p>2. Bankruptcy. Effect of pending actions. Dismissal of appeal.</p> <p>Where after the rendition of a final decree in the lower court enjoining defendants from instituting or prosecuting sales on certain promissory notes, the case was appealed to the supreme court, and pending such appeal, one of the appellants was adjudicated a bankrupt and was discharged, he thereby ceased to have any interest in the notes, though they were not scheduled, and hence the appeal as to him should be dismissed.</p> <p>3. Corporations. Sale of stock. Fraud. Vacation. Surrender of consideration. Ratification.</p> <p>Where complainant was induced by false representation as to its financial situation to purchase the stock of a company and before finding out the falsity of such representations sold the stock to another, he did not thereby ratify the sale to him so as to prevent him from maintaining a suit to set it aside, and to cancel his notes given to secure a part of the price.</p> <p>4. Corporations. Sale of stock. Rescission. Suit. Return of consideration.</p> <p>Where complainant was induced by fraudulent representations to purchase the stock of a corporation, and sold the stock to a third party, receiving from him notes for the purchase price, which notes afterwards turned out to be worthless, such third party having become a bankrupt as did also the corporation, complainant on suing to set aside the transaction for fraud, was not required to return anything to defendants as there was in such case nothing to be returned.</p>