Farmers' & Mechanics' Nat'l Bank v. Ridge Ave. Bank - 240 U.S. 498 (1916)
U.S. Supreme Court
Farmers' & Mechanics' Nat'l Bank v. Ridge Ave. Bank, 240 U.S. 498 (1916)
Farmers' & Mechanics' National Bank v. Ridge Avenue Bank
Argued March 15, 1916
Decided April 3, 1916
240 U.S. 498
Under subsection f of § 5 of the Bankruptcy Act of 1898, and after reviewing conflicting authorities in regard to its construction, held that, when a partnership as such is insolvent and when each individual member is also insolvent, and when the only fund for distribution is produced by the individual estate of one member, the individual creditors of that member are entitled to priority in the distribution of the fund.
The facts, which involve the construction of the provisions of § 5 of the Bankruptcy Act of 1898 relative to the individual assets of a member of a bankrupt partnership and who are entitled to priority in sharing therein, are stated in the opinion.