Greiss v. Scarborough Estates, Inc.

In this action for the recovery of loans made to the corporate defendant, the answer denied the loans and as an affirmative defense alleged that plaintiff invested the amounts sued for as a stockholder; that the defendant was unable to pay past-due obligations and that, therefore, judgment on the claims would be invalid under section 15 of the Stock Corporation Law. In pertinent part this section provides: “No corporation which shall have refused to pay any of its notes or other obligations, when due * * * shall transfer any of its property to any of its * * * stockholders, directly or…