72 Iowa 405 | Iowa | 1887
In February, 1879, the Ft. Madison Construction Company was incorporated, and soon afterwards began
The judgment rendered in the action determines the facts enumerated above. It also determines that the mortgage bonds in the hands of the stockholders, together with the interest received by them thereon, were assets of the corporation ; and the receiver appointed by the court was ordered to collect the same, and apply the proceeds in payment of the debts of the company and the costs of the proceeding. It also determines that defendant George Schlapp held $10,000 of the mortgage bonds, and that he had received as interest thereon the sum of $2,405. The indebtedness of the corporation to individuals was also determined, and it was determined that it was indebted to Schlapp in the sum of
That judgment was entered on the 27th of March, 1884. Defendant Sehlapp did not deliver the mortgage bonds to the receiver, nor did he pay oyer to him the amount of the money he had received as interest thereon ; and, on the 26th of February following, an execution was issued on the judgment, directing the sheriff to collect from him the bonds, and the amount of money received by him, but the execution was returned unsatisfied. On the 11th of April, 1885, the plaintiffs, who are stockholders in the corporation, instituted this proceeding for the pxrrpose of enforcing the judgment against Sehlapp. They alleged in their petition that he had converted the bonds and money in his hands, and that he was indebted to the corporation in the amount of their value, and they prayed that a money judgment be entered against him for that amount, and the same be applied in satisfaction of the corporate debts. They also made Marie Sehlapp, the wife of Greorge Sehlapp, a defendant in the proceeding, and sought to subject certain property, which they alleged she holds in fraud of the rights of the creditors of her husband, to the satisfaction of whatever judgment might
The judgment will be reversed, and judgment in harmony with this opinion will be entered in this court, or the cause will be remanded for the entry of such judgment in the court below, as the parties may elect.
REVERSED.