Clark v. E. C. Clark Machine Co.
Michigan Supreme Court
Appeal from Wayne; Donovan, J. Bill by Minnie Clark and Chauncey R. Clark against the E. C. Clark Machine Company, Ernest C. Clark, William S. Wells, and Harvey J. Wells to set aside the sale of certain corporate stock, and to enjoin the foreclosure of a mortgage. Defendants Wells filed an answer in the nature of a cross-bill for the foreclosure of a mortgage, and the appointment of a receiver.
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Appeal from Wayne; Donovan, J. Bill by Minnie Clark and Chauncey R. Clark against the E. C. Clark Machine Company, Ernest C. Clark, William S. Wells, and Harvey J. Wells to set aside the sale of certain corporate stock, and to enjoin the foreclosure of a mortgage. Defendants Wells filed an answer in the nature of a cross-bill for the foreclosure of a mortgage, and the appointment of a receiver. Fairbanks, Morse & Company and others petitioned to intervene as creditors of defendant corporation. The Detroit Trust Company, as trustee in bankruptcy, was substituted for defendant corporation. From…
1Opinion of the CourtGrant, C. J.
(after stating the facts). We think that Mr. Wells sold his stock to the corporation and not to Mr. Clark individually. Mr. Wells had invested in the corporation $5,000, receiving therefor five thousand par value of the stock fully paid. He acted in entire good faith, and there is an entire absence of evidence showing any intent on the part of the stockholders to defraud creditors. The only evidence of any existing indebtedness at that time is the testimony of Harvey J. Wells, as follows:
“We might, have been owing a little money at that time; I could not give you exactly the amount. I could…
2Cases cited5 opinions
- Upton v. TribilcockSupreme Court of the United States · 1875
- American Steel & Wire Co. v. EddyMichigan Supreme Court · 1902
- Peninsular Savings Bank v. Black Flag Stove Polish Co.Michigan Supreme Court · 1895
- Butterworth & Lowe v. Kritzer Milling Co.Michigan Supreme Court · 1897
- Solomon Solar Salt Co. v. BarberSupreme Court of Kansas · 1897
3Cited by21 opinions
- In re Fechheimer Fisher Co.Court of Appeals for the Second Circuit · 1914
- Gledhill v. Fisher & Co.Michigan Supreme Court · 1935
- North v. Higbee Co.Ohio Supreme Court · 1936
- Spencer v. SmithCourt of Appeals for the Eighth Circuit · 1912
- Cole v. Cole Realty Co.Michigan Supreme Court · 1912
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