¶1Held: That the presumption of fraud arising from the unusual nature of such a sale and transfer, which were out of the usual and ordinary course of business at the bankrupt, could only be overcome by proof on the part of the party taking such transfer, that he took the proper steps to find out the pecuniary condition of the seller; •that he could hardly have failed to know, within the meaning of the bankrupt law, that the object, purpose and effect of such a loan upon such exorbitant rates of interest upon such a conveyance of all the debtor’s assets could only be to defeat the object and impede the operation and effect of the bankrupt act. Decree for the plaintiffs.
4 F. Cas. 272
Brooks v. Davis
U.S. District Court
Decided January 28, 1876
U.S. District Court · decided 1876-01-28
[Appeal from the district court of the United States for the district of Massachusetts.] Bill in equity by the assignees in bankruptcy of Richard II. Atkinson. The bill was brought in the district court. It appeared that Atkinson was a dealer in groceries; that he applied through his attorney, Butler, to the defendant, Davis, for a loan of money upon security of the lease of the store, which he occupied.
Decided 1876-01-28