66 N.Y.S. 370 | N.Y. App. Div. | 1900
The plaintiff in this action -seeks to have set aside an assignment made by the Foote & Thorne Glass Company, a domestic corporation, for the benefit of creditors. The complaint alleges the recov
It appeared from the evidence, and was not contradicted, that the corporation was indebted to the various persons named in the sums that were paid, to them ; that as to the defendants Elizabeth Hislop and Mary J. Colby such indebtedness arose from loans made, to the company after the meeting of the creditors, before referred to. The assignment was without preference, and the assignee was required to distribute the property’ of the corporation coming into his hands among, the creditors of the corporation equally. We will assume that the payments made to the various creditors of this corporation were void under section 48 of the Stock Corporation Law (Laws of 1890, chap. 564). The question is then presented whether a payment made by the officers of a corporation in violation of this statute •invalidates an "assignment without preferences subsequently made by the corporation for the benefit of its creditors. By this action the plaintiff attempts to obtain a preference in the payment of his debt over that of the other creditors of the corporation. By section 48 of
The judgment should, therefore, be reversed and a new trial ordered, with costs to the appellants to abide the event.
Van Brunt, P. J., O’Brien, McLaughlin and Hatch, JJ., ■concurred.
Judgment reversed, new trial ordered, costs to appellants to abide event.