Bank of Topeka v. Majestic Fire Insurance

The opinion of the court was delivered by

Hopkins, J.:

This controversy presents the question whether the state, on the relation of the attorney-general, may prevent the payment to the president of an insolvent corporation of claims of other stockholders held by him, the assignment of which had been obtained by fraud.

The defendant is a capital-stock fire insurance company organized under the laws of this state. Plaintiff commenced this action against it June 11, 1925, to recover on notes amounting to $15,596.92. The same day it procured the appointment of a receiver for the company. On June 30…