Sternburg v. Bowman

This case is too clear for argument. The jury have found that the notes sued on were made to the plaintiff to enable him to represent himself to other creditors of the defendants as having nearly twice as large a claim against the defendants as he really had, and thus obtain a proportionably larger dividend on his debt than the other creditors under the composition deed signed by all of them. The plaintiff, in taking the notes for this purpose, practised a fraud upon the other creditors. The consideration of the notes was therefore illegal, and the notes were wholly void as between the…