Fargason v. Oxford Mercantile Co.
Mississippi Supreme Court
From the chancery court of Lafayette county. Hon. James C. Longstreet, Chancellor. Fargason and others, appellants, were the complainants in the court below; the Oxford Mercantile Company and others, appellees, were defendants there.
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From the chancery court of Lafayette county. Hon. James C. Longstreet, Chancellor. Fargason and others, appellants, were the complainants in the court below; the Oxford Mercantile Company and others, appellees, were defendants there. The bill averred that the Oxford Mercantile Company was a partnership, but pretended to be a corporation; that the partners were the individuals made defendants; that while a charter had been granted the mercantile company, organization thereunder had not been legally effected; that the complainants were all creditors of the company and of the persons who were…
1Opinion of the CourtCalhoon, J.
We will not disturb the numerous decisions of this court holding that insolvent corporations may, in good faith, prefer creditors as individuals may. No bad faith is shown in this-record. It shows merely a prefernce of the bank as creditor,, and every stockholder either expressly authorized, or ratified and approved, the sale to the bank in satisfaction of the debt to it. Sells v. Grocery Co., 72 Miss., 590. If the bank transcended its charter and loaned a larger percentage of its capital to the mercantile company than its charter authorized it to lend to any one person, that was a matter…
2Cases cited1 opinion
- Sells & Co. v. Rosedale Grocery & Commission Co.Mississippi Supreme Court · 1895
3Cited by4 opinions
- Allen v. ThompsonMississippi Supreme Court · 1963
- Barbee v. PigottMississippi Supreme Court · 1987
- Neely v. RawlingsCourt of Appeals for the Fifth Circuit · 1933
- New Orleans N.E.R. Co. v. JemisonMississippi Supreme Court · 1926