Prentiss Douglass, Trustee in Bankruptcy of the Commercial Plumbing & Heating Company, Inc. v. Carrie D. Pugh

The defendant-appellant, a widow and the bookkeeper of the Commercial Plumbing & Heating Company, Inc., at the instance of the president of the company borrowed $8,850.70 from a local bank on August 30, 1957, and executed her personal note to the bank therefor, due and payable in fifteen days. On the same date the proceeds of the note were turned over to the company, which executed its note to the defendant in the same amount. The proceeds were used by the company to meet the payroll and current expenses of the company. Payments were made to the defendant by the company in satisfaction of its…