Coggeshall v. McGrath
New York Supreme Court
Action by Henry J. Coggeshall and others against Francis Mc-Grath. Judgment for plaintiff. Trial before the court without a jury of an action by the plaintiffs as receivers of the Mutual Benefit Loan and Building Company (appointed to liquidate the company for insolvency) against the defendant on a promissory note for $400 made by the defendant to the said company.
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Action by Henry J. Coggeshall and others against Francis Mc-Grath. Judgment for plaintiff. Trial before the court without a jury of an action by the plaintiffs as receivers of the Mutual Benefit Loan and Building Company (appointed to liquidate the company for insolvency) against the defendant on a promissory note for $400 made by the defendant to the said company. The answer pleads as a defense and counterclaim that the defendant being a member of the said company owning 15 shares became a borrowing member, and borrowed from the company $400, for which he gave his said note; that a by-law…
1Opinion of the CourtGaynor, J.
The defendant did not become ipso facto, by his notice of withdrawal, a creditor of the company for the withdrawal value of his shares (or, as the case would be here, for the excess thereof over his indebtedness to the company on his note), so as to exempt" his shares from their proportionate share of the general debts of the company. Vinton v. Building & Loan Ass’n (Ky.) 66 S. W. 510; Cobb v. Johnson, 35 Misc. Rep. 109, 71 N. Y. Supp. 218.
Judgment for the plaintiff.
2Cases cited2 opinions
- Cobb v. JohnsonNew York Supreme Court · 1901
- Vinton v. National Building & Loan Ass'nCourt of Appeals of Kentucky · 1902