Trust Fund Doctrine

80 Florida cases classified under this topic · sorted by citation count · see the citation graph · browse and sort

• John Ownbey Co., Inc. v. Commissioner OF Internal Revenue
  645 F.2d 540· 6th Cir.· 1981-04-02 ·cited 4×
  The court held that the Commissioner failed to prove International was insolvent at the time of the asset transfers to Ownbey, which is a necessary element for transferee liability under Tennessee law.
• W. Pac. R.R. Corp. & Alexis I. DuPont Bayard v. W. Pac. R.R. Co.
  216 F.2d 513· 9th Cir.· 1954-11-01 ·cited 4×
  The court held that the appeal from the summary judgment was frivolous and dismissed it, and that the appeal from the contempt order was premature.
• City of Fort Meade v. State
  120 Fla. 177· Fla.· 1935-06-22 ·cited 3×
  A municipal bondholder obtained a writ of mandamus compelling the City of Fort Meade to foreclose special assessment certificates used to secure bonds. The Florida Supreme Court affirmed, holding that statutes impose a mandatory duty on municipalities to enforce collection of spe
• Raba v. United States
  977 F.2d 941· 5th Cir.· 1992-11-23 ·cited 2×
  A corporate officer who had effective power to disburse funds and pay taxes, even without check-signing authority, can be held liable as a responsible person who willfully failed to pay over withheld taxes.
• C. D. Constr. Corp. v. Commissioner OF Internal Revenue
  451 F.2d 470· 4th Cir.· 1971-11-30 ·cited 2×
  C. D. Construction is liable as a transferee for Charles Town's unpaid taxes because Fairmount, which transferred assets to C. D. Construction, was liable as a stockholder receiving corporate distributions without adequate consideration.
• In re Matthews Assocs., Inc.
  394 F.2d 101· 3d Cir.· 1968-05-09 ·cited 2×
  The court held that a New Jersey statute creating a trust fund for materialmen does not apply to funds collected by a bankruptcy trustee after the subcontractor's bankruptcy, as the statute only covers funds actually received by the subcontractor.
• Automatic Canteen Co. OF Am. v. Wharton
  358 F.2d 587· 2d Cir.· 1966-03-29 ·cited 2×
  The court held that directors of an insolvent corporation are trustees for creditors, and thus a constructive trust can be impressed upon assets distributed to stockholders, allowing creditors to follow the property.
• Garnett v. Gen. Contractors & Builders Inc.
  145 So. 2d 295· Fla. 1st DCA· 1962-09-20 ·cited 2×
  The court held that a genuine issue of material fact existed regarding the fairness of the property transfer, precluding summary judgment.
• Quadrant Structured Prods. Co., Ltd. v. Vertin
  Del. Ch.· 2015-05-04
  The Delaware Court of Chancery denied defendants' motion for summary judgment, holding that a creditor seeking to bring derivative claims must establish insolvency at the time the suit was filed, but not continuously thereafter. The court also affirmed that the traditional balanc
• Sousan Badii v. Metro. Hospice, Inc.
  Del. Ch.· 2012-03-12
  The Delaware Court of Chancery appointed a receiver for Metropolitan Hospice, Inc. (MHI) because the corporation is insolvent and exigent circumstances exist due to a time-sensitive opportunity to settle a significant IRS tax liability. The court found that the board's proposed r
• IN & FOR NEW Castle Cnty. Prod. Res. Grp., L.L.C.
  Del. Ch.· 2004-11-17
  The Delaware Court of Chancery largely denied the defendants' motion to dismiss. The court sustained the plaintiff's claim for the appointment of a receiver under 8 Del. C. § 291, finding sufficient allegations of insolvency and potential bad faith conduct by the board. However,
• Yeager v. The Summit Grp. OF Cent. Fla., Inc.
  654 So. 2d 189· Fla. 5th DCA· 1995-04-13
  Yeager, a commercial landlord, sued Bradshaw and his corporation Summit after Summit breached a lease and dissolved. The court held that Bradshaw, as an insider, received fraudulent transfers when Summit's checks were deposited into his account after the corporation became insolv
• Boyd L. Cline v. United States
  997 F.2d 191· 6th Cir.· 1993-06-29
  The court held that the government was not entitled to judgment notwithstanding the verdict because the jury could have reasonably found that the responsible person did not act willfully, especially when removed from financial decision-making.
• In re Sluggo's Chicago Style, Inc. v. Taxel
  912 F.2d 1073· 9th Cir.· 1990-08-27
  The court held that a security deposit collected by a state taxing authority for unpaid taxes does not constitute a trust fund and is therefore property of the bankruptcy estate when seized prior to the filing of a bankruptcy petition.
• United States v. Van Diviner
  822 F.2d 960· 10th Cir.· 1987-07-07
  The court held that the evidence was insufficient to pierce the corporate veil or hold the individual personally liable for the corporation's contract breach, and the trust fund doctrine was inapplicable.
• In re Thomas
  729 F.2d 502· 7th Cir.· 1984-03-07
  The court held that the defendants' debt to the plaintiff was nondischargeable under 11 U.S.C. § 523(a)(4) to the extent of misappropriated trust funds, and remanded for a determination of the exact amount.
• POE & Assocs., Inc. v. Emberton
  438 So. 2d 1082· Fla. 2d DCA· 1983-10-21
  An insolvent corporation cannot prefer director-creditors over other creditors; directors have a fiduciary duty to all creditors.
• Klapmeier v. Flagg
  677 F.2d 781· 9th Cir.· 1982-05-19
  A debtor's note to a corporation is subject to setoff by the debtor's allowed claims against the corporation, even if the debtor is an officer/director, unless the debt is a trust fund or unpaid stock subscription.
• Painter Carpet Mills, Inc. v. Signet Carpet Co., Inc.
  457 F.2d 536· 5th Cir.· 1972-03-24
  A director's withdrawal of funds from an insolvent corporation for personal benefit creates an outstanding obligation that cannot be offset by subsequent payments on the director's personal guaranties.
• Smith v. Campau Holbrook Co.
  168 F.2d 326· 6th Cir.· 1948-06-03
  The court held that the appellee, having purchased the property for value without notice, is a bona fide purchaser, and the appellants' claims are barred by their delay and failure to act.
• Commissioner of Internal Revenue v. Breyer (two Cases)
  151 F.2d 267· 3d Cir.· 1945-08-31
  Interest paid by transferees on tax deficiencies is deductible as interest on their own indebtedness, even if the liability is secondary, as long as there is a rational basis for the Tax Court's determination.
• Calvin v. Wash. Props., Inc.
  121 F.2d 19· D.C. Cir.· 1941-02-17
  A successor corporation is not liable for the predecessor's debts when it acquires assets through a foreclosure sale, even if the controlling creditors were also shareholders, as long as the foreclosure was not a fraudulent scheme to deprive general creditors of their rightful sh
• Griffin v. The First State Bank of Fort Meade
  119 Fla. 194· Fla.· 1935-05-01
  The Florida Supreme Court reversed the circuit court's judgment allowing a reopened bank to enforce a 100% stockholder assessment that was made while the bank was in liquidation. The Court held that once a bank is reopened and resumes business, it becomes a going banking institut
• Manly Constr. Co. v. Skiles
  116 Fla. 257· Fla.· 1934-03-07
  The Florida Supreme Court reversed a trial court order dismissing an equity complaint filed by Manly Construction Company against the Kiwanis Club of Leesburg and its officers for failing to account for and remit pool admission fees pledged as security for construction costs. The