Maires v. Northside Metal & Machinery Co.

Citations

• 221 F. 115

Syllabus

<p>1. Fraudulent Conveyances <g=>156-Knowledge and Intent or Grantee.</p> <p>Stolen machinery, sold to L. as junk, was retaken by the owner, with the exception of nine tons, which L. had sold to S. The owner had L. arrested, and sued him and his partner, doing business as the N. Co., for the value of the goods disposed of. Within a few days thereafter the partners sold their junk business and property to L.’s father, S., and S.’s brother, who organized a corporation under the name of the N. Go., which took over the property and business. L. and his former partner’s-husband were the only men ever seen around its store. L. and his partner filed a voluntary petition in bankruptcy, scheduling no debts except the judgment obtained against them by the owner of the machinery. S. and his brother had dealt with L., and lived across the street from him; and S. wouid have taken all the junk, had the owner not prevented, when the nine tons had been delivered, and the incorporators knew, when they purchased the business, of L.’s trouble over the machinery and his arrest. Held, that the facts showed that the transaction was fraudulent, and for the purpose of covering up the disposition of the stolen goods and tho effects of the bankrupts, which would bo liable for any damages recovered against them, and that the sale was not as claimed in good faith.</p> <p>iEd. Note.—For other cases, see Fraudulent Conveyances, Cent. Dig. §§ 493, 490; Dec. Dig. <©=158.]</p> <p>2. Fraudulent Conveyances <©=>157 — Knowledge — Grantee — Incorporators.</p> <p>Even though S. and his brother did not share in the knowledge of the entire transaction which was possessed by L.’s father, the goods having been used in the formation of the corporation, the responsibility of all would not be removed by such lack of knowledge on the part of one or more of the incorporators.</p> <p>(Ed. Note.—For other cases, see Fraudulent Conveyances, Gent. Dig. §§ 497-499; Dec. Dig. <©=>157.]</p> <p>«g^aFor other cases see s