Stites v. Dunnahoo’s Empirical Analysis

Citation profile

3 federal appellate · 4 district ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 10 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The mortgagor corporation was insolvent in fact, if not so considered by its president, and obtained the loan for the purpose of paying up certain indebtedness and with the effect of giving a preference to the creditors mentioned, within the definition of section 00a of the bankruptcy act; and while the appellant was not ‘the i^erson receiving’ such preference ‘or to be benefited thereby,’ within section COb, it is clear that the transaction violated section 67e of the act, if the loan ivas made upon the mortgage with notice that the corporation ivas then insolvent, and that it was intended thereby to accomplish unlawful preferences, or under circumstances which charge the appellant with notice that violation of the act ivas the purpose of the loan. It is equally clear that section 67d saves from invalidity the security thus founded upon a present consideration, if ‘accepted in good faith and not in contemplation of or in fraud upon this act’; and, in the absence of notice which impeaches the good faith of the transaction as so defined, the mortgagee is entitled to the benefits of his lien, notwithstanding the fraud, if any there was, on the part of the mortgagor. In this view the inquiry is narrowed to the proof of facts and circumstances brought home to the appellant or to the attorney who conducted the transaction for him, touching both the insolvency of the borrower and the unlawful purpose of' the loan. The findings below are, in effect, that the corporation was insolve”

   1 later decision quote this exact passage · from the majority
   e.g. Walters v. Zimmerman

2. ““A mortgage on the plant of a manufacturing corporation to secure a loan of money made in good faith by the mortgagee, who was wholly unacquainted with the company and acted through an agent, upon representations made by the president of the company and the report of an agent sent to examine the security, is not rendered void by the bankruptcy act, where the company was at the time a going concern and actively conducting its business and not 7onown by the lender or his agent to he insolvent, although it was in .fact insolvent and became a bankrupt within four months, and although the mortgagee knew that a large part of the money borrowed was to be used in paying outstanding unsecured debts.””

   1 later decision quote this exact passage
   e.g. Walters v. Zimmerman

3. ““The policy of the bankrupt law respecting liens for a present consideration differs radically from its treatment of preferences generally or as security for an existing indebtedness.””

   1 later decision quote this exact passage · from the majority
   e.g. In re Watson