Johnson v. Board of Trustees

The opinion of the Court was delivered by

The charter of the old Hospital was repealed by the legislature, but a clause of the repealing section provided against the extinguishment of the debts which it owed.

The new Hospital was at the same time chartered, and the 13th section of the act makes it the duty of the board of health of the old institution to deliver to the trustees of the new one, all property, real and personal, held by them in trust for the old Hospital; and further makes it the duty of the trustees of the new Hospital, to “ pay out of any funds which may come into their hands, all of the debts which may be owing” by the old Hospital.

*320 It is now insisted by the Trustees of the new Hospital, that they are not required by the charter to pay the debts of the old corporation, except out of the funds they received from it, or some special fund provided for the purpose.

It was evidently the intention of the legislature, that the debts of the old corporation should be paid, and for this reason their extinguishment was provided against. If, then, it was intended that the debts should only be paid out of the funds derived from the old corporation, it would be…