Colpitts v. L. C. Fisher Co.

On March 21, 1932, the plaintiffs were employees of the defendant L. C. Fisher Company, and held its notes for money lent to it. Its indebtedness upon notes was about equal to its indebtedness for merchandise. On that day, that corporation decided to make an assignment for the benefit of its creditors, and its officers with a *233creditor named Bova decided to form a new corporation to be called L. C. Fisher Co., Inc., to succeed to the business. All the stockholders of the new corporation agreed orally with the plaintiffs on that day that if the plaintiffs would not enforce their claims against…