Wesco Supply Co. v. El Dorado Light & Water Co.
Supreme Court of Arkansas
Appeal from Union Chancery Court; E. 0, Mahoney, Chancellor; STATEMENT BY THE COURT. Appellants brought this suit against appellee to recover the amount of a judgment for the sum of $587.34 which it had obtained against. the El Dorado Light & Power Company. The complaint alleges that on December 1,1908, said light and power company was a corporation organized and doing business in the State and indebted to it in said sum for goods and merchandise sold and delivered to it.
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Appeal from Union Chancery Court; E. 0, Mahoney, Chancellor; STATEMENT BY THE COURT. Appellants brought this suit against appellee to recover the amount of a judgment for the sum of $587.34 which it had obtained against. the El Dorado Light & Power Company. The complaint alleges that on December 1,1908, said light and power company was a corporation organized and doing business in the State and indebted to it in said sum for goods and merchandise sold and delivered to it. That it obtained judgment therefor in the Union Circuit Court on April 8, 1910, in the sum of $587.34, including interest…
1Opinion of the Court
Kjeby, J.,
(after stating the facts). If the formation of the new corporation and the taking over of the assets of the old upon the issuance of the $20,000 of the stock of the new corporation to John P. Holmes, the owner of all the stock in the old corporation, in payment therefor, be regarded a reorganization of the old corporation, the rights of creditors would not be prejudiced thereby. 10 Cyc. 286.
“The assets of an incorporated company are a trust fund for the payment of its debts, which may be followed into the hands of any person acquiring them with notice of the trust.” Jones-McDowell…
2Cases cited2 opinions
- Jones, McDowell & Co. v. Ark. Mech. & Agl. Co.Supreme Court of Arkansas · 1881
- Dozier v. Arkadelphia Cotton MillsSupreme Court of Arkansas · 1899
3Cited by10 opinions
- West Texas Refining & D. Co. v. Commissioner of Int. Rev.Court of Appeals for the Tenth Circuit · 1933
- National Gypsum Co. v. Continental Brands Corp.District Court, D. Massachusetts · 1995
- Collinsville Nat. Bank v. EsauSupreme Court of Oklahoma · 1918
- Nedry v. VaileSupreme Court of Arkansas · 1913
- Wilson v. LucasSupreme Court of Arkansas · 1932
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