Teague v. Teague Furniture Co.
| Decision Date | 16 December 1931 |
| Docket Number | 562. |
| Citation | 161 S.E. 530,201 N.C. 803 |
| Parties | TEAGUE v. TEAGUE FURNITURE CO. |
| Court | North Carolina Supreme Court |
Appeal from Superior Court, McDowell County; Schenck, Judge.
Action in the nature of a creditor's bill by T. O. Teague trading as Marion Veneer & Panel Company, in behalf of himself and all other creditors and stockholders of the Teague Furniture Company, against the Teague Furniture Company. From a judgment with reference to a claim filed by J. E. Neal, trustee, the trustee appeals.
Affirmed.
Trustee took property subject to equities enforceable against assignor for benefit of creditors.
The plaintiff alleges:
1. That the defendant authorized and issued two classes of stock: (a) Common stock in the par value of $77,000, and (b) 8 per cent cumulative preferred stock in the par value of $77,000.
2. That in the issuance and sale of the said preferred stock, the plaintiff, T. O. Teague, became the personal guarantor of both principal and dividends thereon, and by reason thereof the defendant is indebted to the plaintiff in the sum of $77,000 plus a further sum of $3,000, dividends advanced which the defendant was unable to pay.
3. That the defendant is indebted to the plaintiff in the further sum of $21,708.17 for moneys advanced to the defendant to enable it to carry on its business.
4. That the defendant is indebted to the plaintiff, T. O. Teague trading as Marion Veneer & Panel Company, in the sum of $11,950.38 for veneer material and built up stock.
5. That by reason of the matters and things alleged in the last three preceding paragraphs, the defendant is indebted to the plaintiff in the sum of $113,658.55, over and above all offsets, credits, and counterclaims.
6. That the indebtedness due by the defendant to the plaintiff, T. O Teague, and T. O. Teague, trading as the Marion Veneer & Panel Company, is past-due and unpaid, and in addition thereto the defendant is indebted to various other creditors in the amount of approximately $110,000; that is, a total of more than $200,000.
7. That, during the year 1921, the furniture plant of the defendant in the town of Marion, N. C., was operated at an operating loss of approximately $52,866.71, and by reason thereof the defendant is insolvent, and unable to pay its creditors, all of whom are making demands upon it and are threatening to bring suits in various places in North Carolina.
8. That the defendant is in imminent danger of having its property dissipated; that its business operations have practically been suspended, owing to its financial condition and inability to procure funds with which to operate, and its assets are gradually depreciating and are being gradually consumed, and if it is permitted to continue operation, great and serious loss will result to the creditors and stockholders.
On January 20, 1930, Judge Harding appointed R. S. Crisp temporary receiver of the Teague Furniture Company, and on January 31 Judge Schenck made the appointment permanent.
The receiver made a report setting forth a transaction between T. O. Teague, the president of the Teague Furniture Company, and J. W. Crawford, the secretary of the company, which is more specifically stated in the order of the court; and the receiver was authorized to institute an action against the above-named parties for the recovery of the sum of $2,500 referred to in the report and in the order. Thereupon he brought suit against J. W. Crawford, the plaintiff being a party.
The cause came on for hearing at the February term of the superior court, and Judge Schenck, from the evidence offered, found certain facts, among which are the following:
1. On the 18th day of January, 1930, T. O. Teague was the president and treasurer of the Teague Furniture Company, a corporation doing business in the town of Marion, and J. W. Crawford was secretary and bookkeeper of the said corporation on the said date.
2. On January 18, 1930, the Teague Furniture Company owed large sums of money and was insolvent, which fact was known to the said T. O. Teague, and on application of T. O. Teague, individually and trading as the Marion Veneer & Panel Company, on the 20th day of January, 1930, R. S. Crisp was appointed temporary receiver, and on notice to show cause being heard on the 31st day of January, 1930, the said R. S. Crisp was named permanent receiver of said Teague Furniture Company, and executed and delivered the bond required and took possession of all of the assets of the said Teague Furniture Company.
3. Prior to the 18th day January, 1930, the Teague Furniture Company became indebted to and was on that date indebted to T. O. Teague, its president and treasurer, in a large sum of money, and prior to said date and on to the said J. W. Crawford, secretary and said date the said T. O. Teague was indebted bookkeeper, as aforesaid.
4. On the 18th day January, 1930, the sum of $2,500 was withdrawn from the treasury of the Teague Furniture Company on two checks aggregating that sum, each payable to the order of T. O. Teague, as an attempted credit on the amount due by the Teague Furniture Company to the said T. O. Teague, and at the same time the said Teague indorsed the said checks and delivered the same to the said J. W. Crawford in settlement of the indebtedness then existing and due by T. O. Teague to the said Crawford.
5. On the 8th day February, 1930, T. O. Teague, being indebted to various parties, with the joinder of his wife, executed and delivered to J. E. Neal, trustee, a deed of trust, which is recorded, conveying the property therein described, including the claim of the said T. O. Teague, individually and trading as Marion Veneer & Panel Compa...
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