Ames & Frost v. Heslet
Montana Supreme Court
Appeal from District Court, Silver Bow County. J. J. McHatton, Judge. Action by the Ames & Frost Company and others against James K. Heslet and others to set aside an assignment for the benefit of creditors of the J. Chauvin Northwestern Furniture Company. From a judgment for defendants, and from an ordef denying a motion for new trial, plaintiffs appeal. Statement of the case by the justice delivering the opinion.
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Appeal from District Court, Silver Bow County. J. J. McHatton, Judge. Action by the Ames & Frost Company and others against James K. Heslet and others to set aside an assignment for the benefit of creditors of the J. Chauvin Northwestern Furniture Company. From a judgment for defendants, and from an ordef denying a motion for new trial, plaintiffs appeal. Statement of the case by the justice delivering the opinion. The J. Chauvin Northwestern Furniture Company, a corporation of Butte, Mont., being unable to páy its debts, and being threatened by W. A. Clark & Bro., one of its largest…
1Opinion of the CourtBuck, J.
The determination of this appeal depends upon whether or not an insolvent corporation can make an assignment for the benefit of creditors, with preferences. Appellants’ counsel .insist that such an assignment is void. Their reasoning is substantially as follows : The assets of the corporation constitute a trust fund for its creditors, to which equitable liens at once attach in favor of each and every creditor upon insolvency. An insolvent corporation stands upon a different footing from an insolvent individual, because with insolvency the legal existence of the former is virtually at an end,…
2Cases cited2 opinions
- Lyons-Thomas Hardware Co. v. Perry Stove Manufacturing Co.Texas Supreme Court · 1893
- Gans v. SwitzerMontana Supreme Court · 1890
3Cited by5 opinions
- Kelly v. ClarkMontana Supreme Court · 1898
- Mieyr v. Federal Surety Co.Montana Supreme Court · 1934
- Pittsmont Copper Co. v. O'RourkeMontana Supreme Court · 1914
- Prudential Securities Co. v. Three Forks, H. & M. Valley R.Montana Supreme Court · 1914
- Mieyr v. Federal Surety Co.Montana Supreme Court · 1934