City of Franklin v. Caldwell
Court of Appeals of Kentucky
Case 70 — ACTION BY THE CITY OF FRANKLIN AGAINST J. K. CALDWELL AND OTHERS, TO RECOVER OF THEM MONEY DEPOSITED IN AN INSOLVENT BANK OF WHICH DEFENDANTS WERE DIRECTORS. — Appeal from Simpson Circuit Court. ~W. P. Sandidge, Circuit Judge. Prom the judgment granting partial relief, the Plaintiff appeals.
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Case 70 — ACTION BY THE CITY OF FRANKLIN AGAINST J. K. CALDWELL AND OTHERS, TO RECOVER OF THEM MONEY DEPOSITED IN AN INSOLVENT BANK OF WHICH DEFENDANTS WERE DIRECTORS. — Appeal from Simpson Circuit Court. ~W. P. Sandidge, Circuit Judge. Prom the judgment granting partial relief, the Plaintiff appeals. We submit that where a bank was insolvent when a dividend, Which had not been earned, was declared by the’directors, without complying with the statutory requirements, as set out in Ky. Statutes, sections 548 and 598, and where under the evidence none of these facts were in dispute, the lower…
1Opinion of the Court
Opinion by
John D. Carroll, Commissioner.—
Affirming.
The J. A. McG-oodwin Banking Company, a corporation, made a general assignment for the benefit of creditors in December, 1904. At the time of the assignment the appellees were directors of the bank, having been elected in January, 1904. The capital stock of thé bank was $15,000, and, on April, 1904, the directors declared a dividend of 5 per cent, on the capital stock, payable to the stockholders. At the time the dividend was declared the bank was insolvent, and after deducting from its available assets the bad and suspended debts, its…
2Cases cited4 opinions
- Martin v. WebbSupreme Court of the United States · 1884
- United Society of Shakers v. UnderwoodCourt of Appeals of Kentucky · 1873
- Savings Bank of Louisville's Assignee v. CapertonCourt of Appeals of Kentucky · 1888
- Brannin v. LovingCourt of Appeals of Kentucky · 1884
3Cited by3 opinions
- Quintal v. GreensteinNew York Supreme Court · 1932
- Cunningham v. ShellmanCourt of Appeals of Kentucky · 1915
- Marksberry v. First National BankCourt of Appeals of Kentucky (pre-1976) · 1922