Strang v. Bradner

Citations

• 114 U.S. 555
• 5 S. Ct. 1038
• 29 L. Ed. 248
• 1885 U.S. LEXIS 1794

Syllabus

<p>The rule re-affirmed that the term “fraud,” in the clause defining the debts from which a bankrupt is not relieved by a discharge under the bankrupt act, means positive fraud or fraud in fact, involving moral turpitude or intentional wrong, not implied fraud, which may exist without bad faith.</p> <p>A claim against a bankrupt for damages on account of fraud or deceit prac-tised by him, is not discharged by proceedings in bankruptcy ; nor is a debt, created by his fraud, discharged, even where it was proved against his estate, and a dividend thereon received on account.</p> <p>If, in the conduct of partnership business, and with reference thereto, one partner makes false or fraudulent misrepresentations of fact to the injury of innocent persons dealing with him, as representing the firm, and without notice of any limitations upon his general authority as agent for the partnership, his partners cannot escape pecuniary responsibility therefor upon the ground that the misrepresentations were made without their knowledge ; especially where the firm appropriates the fruits of the fraudulent conduct of such partner.</p>