White v. . Hackett
New York Court of Appeals
Appeal from the Supreme Court. Action by creditors of an insolvent partnership to have its debts ascertained and distribution made of its funds; for the appointment of a receiver, &c.
Read the full summary
Appeal from the Supreme Court. Action by creditors of an insolvent partnership to have its debts ascertained and distribution made of its funds; for the appointment of a receiver, &c. The complaint alleged that the defendant Schenck was a special partner, and that he claimed to have made large advances for the business of the firm over and above the amount of capital contributed by him, for which advances he claimed to be entitled to a dividend in the same manner as other creditors. Upon the trial before Mr. Justice Clerke, it was shown that the defendants, on the 3d of January, 1854, formed…
1Opinion of the CourtH. Gray, J.
The only question brought up by the "appeal is whether Schenck, who was the special partner of his co-defendant Sackett in a business conducted in the name of the latter, is, after the insolvency of the partnership, entitled to dividends in common with the other creditors of the partnership, for cash loaned by him to it during the prosecution of its business and used in payment of its liabilities.
Had Schenck been a general partner the indebtedness to him would have been postponed until the creditors of the firm should be satisfied; for the obvious reason that in such case he would have been…
2Cases cited2 opinions
- Mills v. ArgallNew York Court of Chancery · 1837
- Hayes v. BementThe Superior Court of New York City · 1850
3Cited by5 opinions
- Ward v. NewellNew York Supreme Court · 1864
- In re the Accounting of RieserNew York Supreme Court · 1879
- People ex rel. Anilin v. RobertsAppellate Division of the Supreme Court of the State of New York · 1896
- People ex rel. Badische Anilin & Soda Fabrik v. RobertsAppellate Division of the Supreme Court of the State of New York · 1896
- Ward v. NewellNew York Supreme Court · 1864