Knight v. Burns

Howard Burns was appointed receiver of the Fairmount Pharmacy Co. by order of the insolvency court. He brought an action against Wallace Knight in the Cuyahoga Common Pleas alleging that the assets of the corporation were all sold and debts paid, and that Knight held the proceeds and refused to pay them to the stockholders. Further he prayed for an accounting of all funds in Knight’s' hands.

Knight filed an answer, and made one Kelly party defendant. In his second defense he invoked the doctrine of equitable set-off for the amount he claimed Kelly owed him. At the trial Knight introduced…