Duncan v. State National Bank
Duncan v. State National Bank
Opinion of the Court
delivered the opinion of the court.
The point decided in this case when it was here before — see Bank v. Bank, 83 Miss., 610 (35 South. Rep., 569) — was simply that these appellees, being mere general creditors, could not complain for the stockholders or the directors that the assignment had been illegally executed. We held that general creditors had no standing in court to make such an attack if the stockholders and directors all assented to the assignment. That was all that was involved in the former decision. No attack was made in that case on the assignment, treating it as having been legally executed, for fraud or anything else which would have avoided an instrument once having had legal existence. The sole object of the attack was to show that the assignment had never had any legal existence, and our former holding was that these appellees, mere general creditors, could not pursue this remedy. It was not a remedy which was open to them, if the stockholders and directors assented. This being the case, the doctrine of election is not properly involved in this appeal, and we do not decide the question with respect to the conse
Affirmed.
Reference
- Full Case Name
- Benjamin C. Duncan, Assignee and Receiver v. State National Bank of St. Louis
- Status
- Published
- Syllabus
- Assignment for Benefit of Creditors. Attadlt. Election of remedies. Participation in assets. - Creditors who unsuccessfully attacked a general assignment made by a corporation for the benefit of its creditors on the sole ground that it had not been duly executed are not thereby precluded from participating in the distribution of the assets.