Potts v. Rose Valley Mills
Potts v. Rose Valley Mills
Opinion of the Court
Opinion by
The plaintiff was elected treasurer of the corporation defendant on June 16, 1891. The corporation made an assignment for the benefit of its creditors on March 7, 1892. An adjustment having been agreed upon with its creditors a reconveyance of the assigned property was made June 6, 1893. The action was to recover salary as treasurer from March 7,1892 to Aug. 8, JL893. A verdict was directed for the amount due after the reconveyance and an instruction given that there could be no recovery for the period between the assignment and the recon"veyance.
The plaintiff’s election was for one year from June 16,1891, and more than three months of the term remained after the assignment was made. The assignment did not release the company from its c.ontract, and if there were duties performed during this period, or if there were none and the plaintiff was ready to perform them, and carry out his contract, he was prima facie entitled to recover.
Reference
- Full Case Name
- Benjamin C. Potts v. Rose Valley Mills
- Cited By
- 3 cases
- Status
- Published
- Syllabus
- Corporations — Compensation of officers — Assignment for creditors. Where an officer of a corporation, which has made an assignment for the benefit of creditors, has performed or has been ready to perform the duties of his office, he is entitled to compensation for the unexpired portion of his term during which the company’s property was in the hands of the assignee. The assignment did not release the corporation from its contract to pay its treasurer for the period for which he was elected. Where, however, the treasurer held over without a reflection, while the property of the company was in the hands of the assignee, the presumption is against his right to recover; but if, in fact, services pertaining to his office were rendered by him while so holding over, such services were evidence of his continuance in office and of the consequent right to recover the salary thereof, and evidence of these services should have been submitted to the jury.