237 Mass. 92 | Mass. | 1921
The facts on which this suit is based appear in the earlier case between these parties, reported in 233 Mass. 85, and need not be repeated at length. In brief, as now stated in the master’s report, the Simon Manufacturing Company, the management and control of which were in the hands of Isaac Simon, became financially involved in the spring of 1915. In March, 1915, this company ceased to have a bank account of its own; and in order to protect its funds from creditors, its cash receipts were turned over to the defendant Goldman, who deposited them in his name in a trust company. Goldman drew his personal checks in payment of the company’s bills and other expenses throughout the rest of the business life of the corporation. Down to October 4,1915, he thus received, and mixed with his own funds, the moneys of the manufacturing company to the amount of at least $15,000.
Simon organized the Simon Coat Company under, the laws of this Commonwealth on October 4,1915, and said Goldman became its treasurer. The assets of the manufacturing company except the funds in Goldman’s hands were transferred to the Simon Coat Company without consideration; and the new company continued the same business in the same place, with the same machinery, fixtures and merchandise as before. On said date Goldman had in his hands $2,235.26 belonging to the Simon Manufacturing Company. In the earlier suits, in all of which the Simon Coat Company was a party defendant, it was adjudged that the above transfer to the coat company was fraudulent as to creditors, and that the value of the property so transferred was $10,650.05. By the final decrees it was ordered that the Simon Coat Company should pay this sum to the respective plaintiffs therein, in the order of priority named, together with the $2,235.26 in Goldman’s hands. The total amount, $12,885.31, and interest, was paid before the present suit was brought.
In the case under consideration the Superior Court, in accordance with the findings of the master, decreed that both defendants were liable to the Massachusetts Trust Company for the unpaid balance of $7,396.53, with interest. The only appeal from the final decree was taken by the defendant Moses Goldman. The master finds that he had full knowledge of and was a party to the fraudulent arrangement to transfer the fimds of the manufactur
Ordered accordingly.