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Automotriz Del Golfo De California S.A. De C.V. v. Resnick

California Court of Appeals, Second District, Second Division
Jun 6, 1956
298 P.2d 33 (Cal. Ct. App. 1956)

Opinion


Page __

__ Cal.App.2d __298 P.2d 33AUTOMOTRIZ DEL GOLFO DE CALIFORNIA S. A. DE C. V., Respondent,v.Erwin G. RESNICK, W. D. Cowan and R. William Cowan, Appellants.Civ. 21263.California Court of Appeals, Second District, Second DivisionJune 6, 1956

[298 P.2d 34]Levy, Bernard & Jaffe, by George W. Rochester, Los Angeles, of counsel, for appellants.

Francis B. Cobb, Los Angeles, for respondent.

PER CURIAM.

Concerning respondent's contention that, aside from its claim of liability of appellants as joint adventurers, 'there remains liability for the constructive fraud practiced by the corporate officers paying to Cowan $21,000 between March 17, 1953 and May 25, 1953', there can be no doubt that a director may not use his position to secure for himself any advantage over other creditors in payment of his claim. But the act of appellants in paying Cowan the $21,000 gives rise to a cause of action in the trustee in bankruptcy who was heir to all claims of the bankrupt corporation for its moneys improperly diverted by its directors. Individual creditors have no such cause of action after bankruptcy intervenes. 3 Collier on Bankruptcy, 14th Ed., sec. 60.57, page 1018; 6 Am.Jur. sec. 1166, page 1251; Gochenour v. Cleveland Terminals Bldg. Co., 6 Cir., 118 F.2d 89, 93, 94; Klein v. Leader Electric Corp., D.C., 81 F.Supp. 624, 626; Lovell v. Latham & Co., D.C.Ala., 211 F. 374, 376.

The petition for rehearing is denied.


Summaries of

Automotriz Del Golfo De California S.A. De C.V. v. Resnick

California Court of Appeals, Second District, Second Division
Jun 6, 1956
298 P.2d 33 (Cal. Ct. App. 1956)
Case details for

Automotriz Del Golfo De California S.A. De C.V. v. Resnick

Case Details

Full title:Automotriz Del Golfo De California S.A. De C.V. v. Resnick

Court:California Court of Appeals, Second District, Second Division

Date published: Jun 6, 1956

Citations

298 P.2d 33 (Cal. Ct. App. 1956)

Citing Cases

Automotriz Del Golfo De California v. Resnick

Rehearing Denied June 6, 1956. See 298 P.2d 33. Hearing Granted July 11,…