Lyons v. Benney

Citations

• 230 Pa. 117
• 79 A. 250
• 1911 Pa. LEXIS 572

Syllabus

<p>Corporations — Receiver—Insolvency—Fraud of creditors — Promissory note — Affidavit of defense.</p> <p>1. While the general rule undoubtedly is that the receiver of an insolvent corporation has no greater rights than those possessed by the corporation itself and a defendant in a suit brought by him may take advantage of any defense that might have been made if the suit had been brought by the corporation before its insolvency, it is equally true that when an act has been done in fraud of the rights of the creditors of the insolvent corporation the receiver may sue for their benefit, even though the defense set up might be valid as against the corporation itself.</p> <p>2. One who voluntarily gives his obligation to a bank for the purpose of taking up another obligation and of being exhibited as one of its assets to a supervising officer of the government having supervision and control of its affairs, is estopped to deny want of consideration upon the insolvency of the bank when a receiver brings an action upon the note for the benefit of the creditors of the institution.</p> <p>3. In an action on a promissory note by the receiver of an insolvent bank an affidavit of defense is insufficient which avers substantially that the defendant made and delivered the note in suit to the bank in furtherance of a scheme to deceive the bank examiner, under a promise made to him by the bank that he would not be held liable upon the obligation.</p>