Johnson & Co. v. O'Donnell & Burke
Supreme Court of Georgia
Insolvency. Fraud. Debtor and Creditor. Equity. Before Judge Roney. Richmond Superior Court. April Term, 1885. On January 9, 1885, W. W. Johnson, who was doing business under the name of W. W. Johnson & Company, filed his bill against O’Donnell & Burke, the members of that firm, their wives, and R. H. May, alleging, in brief, as follows: On December 17, 1884, the complainant sold to O’Donnell & Burke a bill of liquors amounting to $493.27 on ninety days’ time.
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Insolvency. Fraud. Debtor and Creditor. Equity. Before Judge Roney. Richmond Superior Court. April Term, 1885. On January 9, 1885, W. W. Johnson, who was doing business under the name of W. W. Johnson & Company, filed his bill against O’Donnell & Burke, the members of that firm, their wives, and R. H. May, alleging, in brief, as follows: On December 17, 1884, the complainant sold to O’Donnell & Burke a bill of liquors amounting to $493.27 on ninety days’ time. In doing this, he relied on their past credit and standing, and acted without any knowledge of their insolvency, which had occurred…
1Opinion of the Court
Blandford, Justice.
The bill filed in this case (which is set out in the report) was demurred to for want of equity. The court sustained the demurrer and dismissed the bill, The plaintiff excepted, and error is now here assigned on said exception.
The allegations in the bill are to be taken as true. Where a party purchases goods, who is insolvent, and, not intending to pay, conceals, his insolvency and his intention not to pay for them, he.is guilty of a fraud which entitles the vendor, if no innocent third party has acquired an interest in them, to disaffirm the contract and recover the goods.…
2Cases cited3 opinions
- Devoe v. . BrandtNew York Court of Appeals · 1873
- Cohen & Co. v. Morris & Co.Supreme Court of Georgia · 1883
- Carter v. LipseySupreme Court of Georgia · 1883
3Cited by5 opinions
- Minter v. PowellCourt of Appeals of Georgia · 1979
- Martin v. BurgwynSupreme Court of Georgia · 1891
- In re SpannDistrict Court, N.D. Georgia · 1910
- Fullerton Cotton Mills Inc. v. ButlerSupreme Court of Georgia · 1951
- Stalvey v. PEDI JOY SHOES CORPORATIONSupreme Court of Georgia · 1964