Chamberlain v. . Trogden
Supreme Court of North Carolina
AotioN to recover tbe amount of a note for $500, with interest thereon, given by defendant to the Damask Manufacturing Company for stock issued by the company- and delivered to and held by defendant, tried before Ward, J., and a jury, ¿t October Term, 1907, of Wilkes.
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AotioN to recover tbe amount of a note for $500, with interest thereon, given by defendant to the Damask Manufacturing Company for stock issued by the company- and delivered to and held by defendant, tried before Ward, J., and a jury, ¿t October Term, 1907, of Wilkes. The subscription was made and note was given by defendant on 5 Tune, 1905. On 15 September of the same year, the company having been duly adjudged a'bankrupt, plaintiff was appointed trustee; and in July, 1906, the present action was instituted to recover the amount of the note. Defendant answered, and alleged in bar of recovery…
1Opinion of the Court
IIokb, J.,
after stating the facts: There is some conflict of authority as to the right of a subscriber to rescind his subscription or maintain a defense to his obligation therefor on the ground of fraud, after the corporation has become insolvent and its affairs have passed into the possession and control of a receiver or the bankruptcy court, or other method of general adjustment, primarily for the benefit of creditors. The English cases and some courts in this country have held that, under conditions indicated, it is no longer open to the subscriber to maintain such a defense. These English…
2Cases cited5 opinions
- Martin v. South Salem Land Co.Supreme Court of Virginia · 1896
- Thompson v. Reno Savings BankNevada Supreme Court · 1885
- Ross-Meehan Brake Shoe Foundry Co. v. Southern Malleable Iron Co.U.S. Circuit Court for the District of Eastern Tennessee · 1896
- Urner v. SollenbergerCourt of Appeals of Maryland · 1899
- Ramsey v. Thompson Manufacturing Co.Supreme Court of Missouri · 1893
3Cited by12 opinions
- Mitchell v. HancockCourt of Appeals of Texas · 1917
- Corp. Commission v. Merchants BankSupreme Court of North Carolina · 1927
- Reid v. Owensboro Savings Bank & Trust Co.Court of Appeals of Kentucky · 1911
- Heiskell v. MorrisTennessee Supreme Court · 1916
- Smith v. AldridgeSupreme Court of Georgia · 1941
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