Weideman v. Newton Arms Co.
Court of Appeals for the Second Circuit
Appeal from the 'District Court of the United States for the Western District of New York. Suit in equity by Carl J. Weidcman against the Newton Arms Company, Incorporated. Appeal by The Manufacturers’ & Traders’ National Bank of Buffalo and another intervened. From an order of the District Court, interveners appeal.
Read the full summary
Appeal from the 'District Court of the United States for the Western District of New York. Suit in equity by Carl J. Weidcman against the Newton Arms Company, Incorporated. Appeal by The Manufacturers’ & Traders’ National Bank of Buffalo and another intervened. From an order of the District Court, interveners appeal. Defendant corporation, being insolvent in tlie sense of inability to pay irs current obligations as they matured, passed into the hands of a receiver appointed under a creditors’ conservation bill. The receiver has liquidated the assets of the corporation; no other form of…
1Opinion of the CourtHough, Circuit Judge
(after stating the facts as above). The basis of the lower court’s holding is that the moneys sent to the insolvent company constituted “a trust estate in the custody of the receiver, who occupies the same position in respect to such moneys” as did the corporation itself. The foundation, however, on which such trust estate must stand, is the fraud of the corporation, which in this case could only have been the fraudulent representations of the advertising matter above referred to.
But in order to establish such a trust on the part of a wrongdoer it is necessary to show that the fraudulent…
2Cases cited6 opinions
- American Sugar Refining Co. v. FancherNew York Court of Appeals · 1895
- In re BolognesiCourt of Appeals for the Second Circuit · 1918
- In re A. D. Matthews' Sons, Inc.Court of Appeals for the Second Circuit · 1916
- Jaffe v. . WeldNew York Court of Appeals · 1913
- In re JarmulowskyCourt of Appeals for the Second Circuit · 1919
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Spiller v. St. Louis & S. F. R.Court of Appeals for the Eighth Circuit · 1926