(Download) "Colpitts Et Al. v. L. C. Fisher Co. Et Al." by Supreme Judicial Court of Massachusetts * Book PDF Kindle ePub Free
eBook details
- Title: Colpitts Et Al. v. L. C. Fisher Co. Et Al.
- Author : Supreme Judicial Court of Massachusetts
- Release Date : January 10, 1935
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 69 KB
Description
LUMMUS, Justice. On March 21, 1932, the plaintiffs were employees of the defendant L. C. Fisher Company, and held its notes for money lent to it. Its indebtedness upon notes was greater than its indebtedness for merchandise. On that day, that corporation decided to make an assignment for the benefit of its creditors, and its officers with a creditor named Bova decided to form a new corporation to be called L. C. Fisher Co., Inc., to succeed to the business. All the stockholders of the new corporation agreed orally with the plaintiffs on that day that if the plaintiffs would not enforce their claims against the old corporation, but would let its assets be used to satisfy the merchandise creditors, the new corporation would continue to employ the plaintiffs and would pay the notes given them by the old corporation. The Judge found that this arrangement conferred a benefit on the new corporation. The assignee for the benefit of creditors sold all the assets of the old corporation to Bova for $3,000, which was used to pay dividends to the merchandise creditors, and then Bova turned the tangible assets over to the new corporation for a consideration. The plaintiffs forebore to enforce their claims against the old corporation, and continued in the employ of the new corporation until they were discharged, but their notes have not been paid. This bill was brought to require the new corporation, L. C. Fisher Co., Inc., to pay the notes. The final decree dismissed the bill as against the other defendants, but established liability against the new corporation, which appealed to this court.
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