Cornelius v. C.C. Pictures

1 Citing case

  1. In re Bernard

    87 F.2d 705 (2d Cir. 1937)   Cited 73 times
    Holding that directors and officers are fiduciaries

    This was not only unlawful under section 15 of the New York Stock Corporation Law, but also under general doctrines of equity. Cornelius v. C.C. Pictures, Inc., 7 F.2d 308, 309 (C.C.A.2); Pennsylvania R. Co. v. Pedrick, 222 F. 75, 79 (D.C.); Adams v. Kehlor Milling Co., 35 F. 433 (C.C.); Adams v. Kehlor Milling Co., 36 F. 212 (C.C.); Joseph v. Raff, 82 App. Div. 47, 49, 81 N YS. 546, affirmed 176 N.Y. 611, 68 N.E. 1118; Third National Bank v. Elliott, 42 Hun, 121, 129, affirmed 114 N.Y. 622, 21 N.E. 416; Tatum v. Leigh, 136 Ga. 791, 72 S.E. 236, Ann.Cas. 1912d 216; Banks v. Corning Bank Trust Co., 188 Ark. 841, 68 S.W.2d 452, 28 A.B.R.(N.S.) 744; Savage v. Miller, 56 N.J. Eq. 432, 36 A. 578, 39 A. 665. In the case at bar we have a situation where a director and president, knowing a corporation to be insolvent, has appropriated part of its assets to liquidate his own claims and those of his son who was another officer. It was his duty not to use his position as a fiduciary for his own benefit and also not to co-operate with his son, another fiduciary, to benefit the latter at the expense of the creditors.