140 Iowa 223 | Iowa | 1908
— Plaintiff recovered judgment against the Des Moines Cabinet Company December 31, 1900, in the sum of $325 for breach of a contract of employment. The cabinet company was a corporation organized under the laws of this State, and at all times material to our inquiry the entire stock of the corporation was owned by defendant
The instant case seems to call for a rather full discussion of the so-called “trust-fund” doctrine, and we have perhaps said enough to indicate our view of the matter. We may conclude this branch of the inquiry by quoting the following terse statement from Railroad Co. v. Howard, 7 Wall. (U. S.) 409 (19 L. Ed. 117) : “Equity regards the property of a corporation as held in trust for the payment of the debts of the corporation, and recognizes the right, of creditors- to pursue it into whosoever’s possession it
For appellant it is argued that the plaintiff should have followed the stock received by Hartung. That proposition is very satisfactorily answered in Hibernia Co. v. St. Louis Co. (C. C.) 13 Fed. 516, where it is said that a creditor in such cases is not required to run the chances of following and recovering the value of the shares of the stock after they are placed upon the market. In McIver v. Young, supra, this proposition is fully considered and determined adversely to appellants’ contention. On account
The decree will be modified, and as so modified will stand.
Modified and affirmed.