Lyman v. Bonney
Massachusetts Supreme Judicial Court
Bill in EQUITY against the president and directors of the State Mutual Fire Insurance Company, and against the said company, to recover the amount unpaid upon a policy of insurance against fire, upon which a judgment had been recovered and execution issued, and alleging that the defendants, having the funds of the company in their hands sufficient to pay this claim, neglected and refused to pay it, and applied the funds to other purposes by distributing them among themselves…
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Bill in EQUITY against the president and directors of the State Mutual Fire Insurance Company, and against the said company, to recover the amount unpaid upon a policy of insurance against fire, upon which a judgment had been recovered and execution issued, and alleging that the defendants, having the funds of the company in their hands sufficient to pay this claim, neglected and refused to pay it, and applied the funds to other purposes by distributing them among themselves and the other stockholders, and conducted the affairs of the company with gross negligence and in fraud of the rights…
1Opinion of the CourtColt, J.
The funds of the insurance company of which the
individual defendants were directors were held in trust to pay the debts of the company. The bill charges that the directors negligently and fraudulently applied these funds to other purposes by distributing them among themselves and other stockholders, and these allegations, as already held in this case on demurrer, are sufficient to give the court jurisdiction in equity. 101 Mass. 562.
*223The case was sent to a master to report the facts, and is reserved upon his report. It appears that the plaintiff is the holder of a judgment against the company,…
2Cases cited1 opinion
- Lyman v. BonneyMassachusetts Supreme Judicial Court · 1869
3Cited by12 opinions
- Cosmopolitan Trust Co. v. MitchellMassachusetts Supreme Judicial Court · 1922
- Sagalyn v. Meekins, Packard & Wheat Inc.Massachusetts Supreme Judicial Court · 1935
- Greenfield Savings Bank v. AbercrombieMassachusetts Supreme Judicial Court · 1912
- Manning v. CampbellMassachusetts Supreme Judicial Court · 1928
- Codman v. DumaineMassachusetts Supreme Judicial Court · 1924
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