Quintal v. Fidelity & Deposit Co. of Maryland

This is an action by the trustees in bankruptcy of. Consolidated Factors Corporation (formerly known as *658Pelz-Greenstein Co., Inc.) to recover moneys paid to the defendant under an alleged ultra vires indemnity agreement.

The adjudication in bankruptcy took place on June 13, 1930. For some years prior thereto Consolidated Factors Corporation, hereinafter referred to as the bankrupt, had been engaged in business as a commercial factor. Among the firms which it financed was Madison Distributing Company. Merchandise purchased by the latter for sale would be consigned to the bankrupt as security…