Saperston v. National Bond & Investment Co.

Headnote

Bankruptcy — debtor and creditoi preference — action by trustee in bankruptcy to recover money paid on unsecured debt by insolvent corporation.

Saperston v. Nat. Bond & Investment Co., 219 App. Div. 761 , affirmed.

Appeal from a judgment, entered January 15, 1927, upon an order of the Appellate Division of the Supreme Court in the fourth judicial department, reversing a judgment in favor of defendant entered upon a verdict directed by the court and directing judgment in favor of plaintiff. The complaint alleged that on August 8, 1924, the petition in involuntary bankruptcy was filed; that the adjudication was on August 15, 1924, and plaintiff was appointed trustee on August 29, 1924; that from July 10 to July 29, 1924, the bankrupt transferred money to defendant in payment of an unsecured debt; that such transfer enabled defendant to obtain and operated as a preference, and that defendant had reasonable cause to believe that the transfer operated as a preference. The complaint also alleged that the transfer was made with intent to hinder, delay and defraud creditors and not in good faith for present fair consideration. Defendant claimed that the money paid it was in restitution of money stolen from it by the bankrupt.