Hazelhurst Lumber Co. v. Carlisle Mfg. Co.
Court of Appeals of Kentucky
CASE 1 —ACTION BY THE HAZELHURST LUMBER COMPANY AGAINST THE CARLISLE' MANUFACTURING COMPANY AND OTHERS. — Appeal from Carlisle Circuit Court. R. J. Bugg, Circuit Judge. Judgment of dismissal. Plaintiff appeals. — We submit that it can not be the law that the owners of an insolvent corporation may take its assets and pay their individual debts, and yet not be liable to the creditors of the corporation.
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CASE 1 —ACTION BY THE HAZELHURST LUMBER COMPANY AGAINST THE CARLISLE' MANUFACTURING COMPANY AND OTHERS. — Appeal from Carlisle Circuit Court. R. J. Bugg, Circuit Judge. Judgment of dismissal. Plaintiff appeals. — We submit that it can not be the law that the owners of an insolvent corporation may take its assets and pay their individual debts, and yet not be liable to the creditors of the corporation. Such a doctrine seems to us to be monstrous, and can not be sustained upon any ground whatever. This ruling is such flagrant error that it does not seem to us necessary to do more than to call…
1Opinion of the Court
Opinion of the Court by
Judge Hobson —
Reversing.
The Carlisle Manufacturing Company was in debt to the Hazelhurst Lumber Company in the sum of $814.67,'for which the lumber company held its note, dated November 3, 1906, and due one day after date. On the 30th day of September the plant of the Carlisle Manufacturing Company was destroyed by fire. The plant was insured in the sum of $2,600. The insurance was paid, and the money was deposited in the People’s Bank of Bardwell. On February 5, 1907, this suit was brought by the lumber company against the Carlisle Manufacturing Company and the bank,…
2Cases cited4 opinions
- Thompson v. Heffner's executorsCourt of Appeals of Kentucky · 1875
- Northern Bank v. Farmers' Nat. BankCourt of Appeals of Kentucky · 1901
- Mt. Sterling Nat. Bank v. PriestCourt of Appeals of Kentucky · 1901
- Nock's Exr. v. GoodloeCourt of Appeals of Kentucky · 1883
3Cited by5 opinions
- Thompson-Starrett, Etc. v. Mason's Adm'rsCourt of Appeals of Kentucky (pre-1976) · 1946
- Rivers-Yager Company's Trustee v. Lincoln Bank & Trust Co.Court of Appeals of Kentucky (pre-1976) · 1929
- Stephens v. Allied Bldg. Credits, Inc.Court of Appeals of Kentucky · 1954
- Scuddy Mining Co. v. MullinsCourt of Appeals of Kentucky · 1953
- State Ex Rel. McConnell v. American Savings Bank & Trust Co.Court of Appeals of Tennessee · 1928