For Your Data Obre V. Alban Tractor Co. Example Brief
May 04, 2016
Edit
Obre v. Alban Tractor Co. illustration brief summary
179 A.2d 861 (1962)
CASE FACTS
At the fourth dimension of initial capitalization of appellee corporation, appellant received a greenback payable inwards v years for a cash contribution, said greenback beingness listed inwards the entity's fiscal reports. Appellee creditors contended inwards liquidation proceedings that the greenback represented a conduct chances uppercase investment, was non a bona fide debt, together with that in that place had been undercapitalization.
DISCUSSION
CONCLUSION
The courtroom reversed the trial court's conclusion inwards favor of appellees together with against appellant, belongings that appellant's claim every bit a unsecured creditor was valid.
Recommended Supplements for Corporations together with Business Associations Law
179 A.2d 861 (1962)
CASE SYNOPSIS
Appellant, the main shareholder, president, together with unsecured creditor of appellee insolvent corporation, challenged the conclusion of the Circuit Court for Baltimore County (Maryland), which sustained exceptions past times appellee creditors to appellant's claim inwards corporate liquidation proceedings.CASE FACTS
At the fourth dimension of initial capitalization of appellee corporation, appellant received a greenback payable inwards v years for a cash contribution, said greenback beingness listed inwards the entity's fiscal reports. Appellee creditors contended inwards liquidation proceedings that the greenback represented a conduct chances uppercase investment, was non a bona fide debt, together with that in that place had been undercapitalization.
DISCUSSION
- The courtroom reversed the trial court's conclusion that sustained the exceptions to appellant's claim because inwards the absence of whatsoever chemical portion of fraud or imposition on a subordinating equity, such a loan was recoverable to the same extent every bit if made to the enterprise past times whatsoever other lender.
- The courtroom rejected appellees' argument that the enterprise was undercapitalized, together with constitute that appellee creditors had a duty to obtain data from the corporation's fiscal records together with from the populace records, together with had exclusively themselves to blame for failure to create so.
CONCLUSION
The courtroom reversed the trial court's conclusion inwards favor of appellees together with against appellant, belongings that appellant's claim every bit a unsecured creditor was valid.
Recommended Supplements for Corporations together with Business Associations Law