Bank of Commerce v. Lawrence County Bank
Supreme Court of Arkansas
Appeal from Lawrence Chancery Court; Edward D. Robertson, Chancellor; STATEMENT BY THE COURT. The Culver Lumber & Manufacturing Company, a corporation, was placed in the hands of a receiver by order of the chancery court of Lawrence County in a suit brought in that court by a stockholder, alleging, amongst other things, fraud and mismanagement of its affairs and insolvency, and asking for the sale and distribution of proceeds of its assets.
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Appeal from Lawrence Chancery Court; Edward D. Robertson, Chancellor; STATEMENT BY THE COURT. The Culver Lumber & Manufacturing Company, a corporation, was placed in the hands of a receiver by order of the chancery court of Lawrence County in a suit brought in that court by a stockholder, alleging, amongst other things, fraud and mismanagement of its affairs and insolvency, and asking for the sale and distribution of proceeds of its assets. The receiver took possession and administered the assets of the concern under orders cf the court. In course of the proceedings a master in chancery was…
1Opinion of the Court
McCulloch, J.,
(after stating the facts.) The facts are undisputed. The Lawrence County Bank advanced money upon acceptances to the Culver Lumber & Manufacturing Company, while yet a going concern, which was used by the latter in paying off labor claims constituting liens upon lumber manufactured. The court decreed the debt to be a claim against the assets of the corporation with priority over the claims of other creditors. Was it proper to do so?
The indebtedness to appellee was created before the assets of the corporation passed into the hands of a receiver — how long before, it does not…
2Cases cited2 opinions
- Fosdick v. SchallSupreme Court of the United States · 1879
- Kneeland v. American Loan & Trust Co.Supreme Court of the United States · 1890
3Cited by7 opinions
- International & G. N. Ry. Co. v. Concrete Inv. Co.Court of Appeals of Texas · 1917
- United States ex rel. Norfolk Southern Railroad v. D. L. Taylor Co.District Court, E.D. North Carolina · 1920
- Cuesta, Rey Co. v. Newsom, as LiquidatorSupreme Court of Florida · 1931
- Lovingood v. Butler Construction Co.Supreme Court of Florida · 1930
- Long-Bell Lumber Co. v. AuxerSupreme Court of Arkansas · 1953
2 more not listed; retrieve them via the Exa API.