BOYNTON v. ROE., 114 Mich. 401

Summary

The assignee filed a complaint in trover against the director after he refused to return the assets upon demand. The trustee had assigned the assignee the surplus from foreclosure of the chattel mortgage of all the corporation's property and assets. The trustee had been given the mortgage by the corporation's other two directors to secure creditors. The assignee sought the property taken by the director to pay off unsecured creditors. The court denied the assignee's directed verdict and the jury returned a verdict for the director. On appeal by the assignee, the court reversed the judgment because the assignee was entitled to a directed verdict. The court held that the assignment to the trustee was proper because the other directors of the insolvent corporation had the right to make a general assignment of its property for the benefit of its creditors, unless prohibited by its charter or a statute. In addition, the assignment was prima facie valid and the burden was on the director to ...