Savage v. Miller
Supreme Court of New Jersey
On appeal from a decree advised by Vice-Chancellor Reed, who delivered the following opinion : The mortgage is attacked by the receiver, upon the ground that the directors of this insolvent company had such an interest in the payment of the debts secured by it that the preferences so created are voidable. The execution of the mortgage was directed by the votes of three directors of a board of five.
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On appeal from a decree advised by Vice-Chancellor Reed, who delivered the following opinion : The mortgage is attacked by the receiver, upon the ground that the directors of this insolvent company had such an interest in the payment of the debts secured by it that the preferences so created are voidable. The execution of the mortgage was directed by the votes of three directors of a board of five. The votes of all the three in favor of the mortgage were essential to a legal expression of the corporate will. If any one of these three directors was disqualified by reason of his adverse…
1Opinion of the Court
The opinion of the court was delivered by
Garrison, J.
The question to be decided upon this appeal is, whether the claims of certain creditors of the Johnson Railway Signal Company were lawfully preferred by a mortgage given by its directors to George W. Miller, trustee, in the month of January, 1895, at which time the corporation was insolvent. The bill, *438which is filed by Edward I. Savage, receiver, attacks the mortgage as a preference upon the ground that George "W". Miller, to-whom it was made, was a director of the insolvent company. It may be well to note here that the statute of this…
2Cited by8 opinions
- In Re BernardCourt of Appeals for the Second Circuit · 1937
- De Stefano v. American Chocolate Almond Co.New Jersey Court of Chancery · 1930
- City National Bank v. Goshen Woolen Mills Co.Indiana Court of Appeals · 1903
- Havens v. Mohme Aero Engineering Corp.New Jersey Court of Chancery · 1944
- Richards v. HalidayU.S. Circuit Court for the District of New Jersey · 1899
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