Oglesby v. Walton & Company

The creditors of Walton filed an equitable petition under the traders’ act, to set aside a sale of his stock of merchandise to Bailey, alleging that the property was inventoried at $3,500 and sold for $1,500, much less than its value, and with intent to hinder, delay, and defraud his creditors, and that Bailey purchased with a knowledge of that intent. Bailey answered, claiming that he paid full price, and bought in good faith, without notice of Walton’s intent to defraud his creditors. Walton having been adjudicated a bankrupt, the trustee intervened as plaintiff, and the trial proceeded…