Society of the Methodist Episcopal Church South v. Jefferson Banking Co.
Society of the Methodist Episcopal Church South v. Jefferson Banking Co.
Opinion of the Court
(After stating the foregoing facts.) When the case was formerly here it was held, in effect, that the certificate of preferred stock held by the intervenors, and which was the foundation of their intervention, was not a debt but was a certificate of preferred stock, and upon that basis they were not entitled to a lien on the assets of the insolvent corporation superior to the liens of general creditors. When the case was returned to the trial court, and before judgment was entered upon the remittitur, the plaintiffs in error amended their petition by alleging that the defendants in error, being creditors of the insolvent corporation, were estopped from denying that the certificate of stock was not in fact an evidence of debt, because, at the time the certificate of stock was issued to the plaintiffs in error, all of the creditors made their debts with said Jefferson Cotton Mills with the knowledge and understanding that the legal effect, force, and meaning of the said certificate of stock was that it evidenced a debt in favor of the intervenors against that corporation for said sum, and was a lien on all of its property to secure said sum of money, and superior to the claims and demands and liens that might then or thereafter exist in favor
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.