Murphy v. Pacific Bank

The defendant, a banking corporation, closed its doors on June 33, 1893, being then insolvent, and on November 3, 1893, was duly declared insolvent in a proceeding taken under section 11 of the bank commissioners’ act, and since that time has been in liquidation, and has declared and paid six dividends of five per cent each on the unsecured claims of its depositors and creditors, exclusive of creditors who are stockholders, and future dividends amounting to ten or fifteen per cent are expected to be paid.

This action was brought to recover a judgment against the defendant for the sum of $73,938.10, in which sum, the plaintiff alleged, the defendant became indebted to James M. McDonald on March 33, 1893, for moneys theretofore loaned to it by said McDonald, who at all said times was and still is a stockholder; that said demand is unsecured, and that said McDonald sold and assigned said demand to the plaintiff in good faith and for value. The prayer was for judgment in said sum, that he be paid thirty per cent thereof, the amount of dividends already paid to others, and be allowed to participate in all future dividends.

The defendant, in its first defense, denied that said money…