Book Description

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1918 edition. Excerpt: ...be impaired. It was said in Fred Macey Co. v. Frank Macey, 5 L. R A. (N. S.) 1036 (143 Mich. 138, 106 N. W. 722): "Equity has jurisdiction to cancel a fraudulent contract alleged to bind the assets of a corporation and which, until canceled, will tend to injure its business and impair its credit, although there is remedy at law by defense to an action to enforce it, or by an action to compel restoration of the funds secured by means of it." The defendant argues that the instant case is controlled by that of Trimble et al. v. Minnesota Thresher Mfg. Co., 10 Okla. 578, 64 Pac. 8, wherein this court held that it would not exercise its equity jurisdiction to cancel Security Trust & Savings Bank of Charles City, Iowa, v. Glelchmann. a note which was entered into on account of deceit practiced in the sale of chattel property. In that case no special circumstances were alleged giving the court equitable jurisdiction, the court saying that the petition did not allege that the payee was insolvent and unable to respond in damages, or that it was about to transfer the note before maturity to an innocent purchaser. Had the petition contained an allegation alleging some special circumstance showing that it was necessary to resort to equity to prevent an irreparable injury, the decision, no doubt, would have been different. We therefore conclude that the petition alleging that the signature was a forgery, and that the same appearing on said indemnity bond necessarily injured the credit of plaintiff, these were such special circumstances as would establish the necessity of resorting to equity to prevent irreparable injury. The petition therefore stated a cause of action which was fully sustained by the evidence. The cause should therefore be affirmed....