Lambert v. Reisman Co.

Morling, J. —

The bankrupt, S. E. Reisman, long before filing petition in bankruptcy, had transferred his property to the defendant Reisman Company, a corporation, of which his brother, the defendant Charles M. Reisman, and the brother’s sons, the defendants Claire R. and Van Reisman, were the owners. The action is brought to recover the value of this property. Inasmuch as the plaintiff sues in his capacity of trustee in bankruptcy, his title to the cause of action is necessarily derivative. Plaintiff alleges that the property was obtained by defendants by fraud perpetrated upon the bankrupt.…