Bradley v. Converse
U.S. Circuit Court for the District of Massachusetts
In bankruptcy. The complainants [Charles S. Bradley, Charles K. Chapman, and George M. Barnard] were the assignees in bankruptcy of the Boston, Hartford, and Erie Kailroad Company, which was duly adjudged bankrupt, and the respondents, Henry X. Harwell, Asa -Farwell, and Samuel Hall [Jr.], composed the firm of A. G. Farwell & Co.; Henry N. Farwell was a director in the railroad company from Sept. 12, 1866, to Dec. 20, 1869, and vice-president thereof, and he was a member of…
Read the full summary
In bankruptcy. The complainants [Charles S. Bradley, Charles K. Chapman, and George M. Barnard] were the assignees in bankruptcy of the Boston, Hartford, and Erie Kailroad Company, which was duly adjudged bankrupt, and the respondents, Henry X. Harwell, Asa -Farwell, and Samuel Hall [Jr.], composed the firm of A. G. Farwell & Co.; Henry N. Farwell was a director in the railroad company from Sept. 12, 1866, to Dec. 20, 1869, and vice-president thereof, and he was a member of the executive committee of the board of directors throughout the same period. All of these allegations of the bill were…
1Opinion of the Court
CLIFFORD, Circuit Justice.
Assets of an incorporated company are regarded in equity as held in trust for the payment of the debts of the corporation, and courts of equity will enforce the execution of such trusts in favor of creditors, even when the matter in controversy may not be cognizable in a court of law. Such assets are usually controlled and managed by directors or trustees, but courts of equity will not permit such managers, in dealing with the trust estate, in the exercise of the powers of their trust, to obtain any undue advantage for themselves, to the injury or prejudice of those…
2Cited by5 opinions
- Sutton Manuf'g Co. v. HutchinsonCourt of Appeals for the Seventh Circuit · 1894
- Union Coal Co. v. WooleySupreme Court of Oklahoma · 1915
- Olney v. Conanicut Land Co.Supreme Court of Rhode Island · 1889
- Hays v. Citizens' BankSupreme Court of Kansas · 1893
- City National Bank v. Goshen Woolen Mills Co.Indiana Court of Appeals · 1903