Rudisill's Trustee v. Wildasin

Citations

• 275 Pa. 255
• 119 A. 137
• 1922 Pa. LEXIS 489

Syllabus

<p>Bankruptcy — Preference—Intention—Belief — Evidence — Case for fury — Act of Congress of 1910.</p> <p>1. To establish a preference in bankruptcy it must appear that the creditor who was paid, had reasonable cause to believe preference was intended.</p> <p>2. The mere fact that the money was paid and that the debtor was insolvent does not of itself give rise to a claim of preference; nor, standing alone, will they be sufficient to support a concerted action having that end in view; nor will a mere suspicion from such evidence be sufficient.</p> <p>3. There must be some evidence showing concerted action or circumstances enough to put an ordinarily prudent man on inquiry.</p> <p>4. Whether such reasonable cause to believe existed is a question of fact for the jury, and the burden of proof is on the trustee in bankruptcy seeking to establish the preference.</p> <p>5. If a creditor knows of his debtor’s insolvency, or has reasonable ground to believe he is insolvent, and taking and enforcing the security or transfer will work a preference, he brings himself within the Act of Congress of 1910.</p>