Gregory v. Binghamton Trust Co. 220 N.Y. 626

William M. Gregory, as Trustee in Bankruptcy of Charles J. Knapp, Individually and as Copartners, Constituting the Firm of Knapp Brothers, Respondent, v. Binghamton Trust Company et al., Appellants.

Gregory v. Binghamton Trust Co., 168 App. Div. 805, affirmed.

(Argued January 22, 1917;

decided February 27, 1917.)

Appeal from a judgment of the Appellate Division of the Supreme Court in the third judicial department, entered July 26, 1915, affirming a judgment in favor of plaintiff entered upon a verdict. The action was brought by plaintiff, as trustee in bankruptcy of the firm of Knapp Brothers, located, and from early in 1903 up to April 8, 1909, carrying on a private banking business in the village of Deposit, N. Y., with a branch bank at Callicoon, Sullivan county, N. Y., to recover the possession of certain promissory notes of the face value of $131,633.31, which notes were in the possession of the Binghamton Trust Company at the time of the failure of that bank and of this private banking firm of Knapp Brothers, both of which events occurred on April 8, 1909, and which notes the complaint alleged were transferred to the Binghamton Trust Company by said firm of Knapp Brothers while said firm was hopelessly insolvent, and with the intent to hinder, delay and defraud their creditors, which fraudulent intent the complaint alleged was known to the Binghamton Trust Company at the time when it took the notes.-

D- Cady Herrick for appellants.

Harvey D. Hinman and E. D. Cumming for respondent.