Page:Federal Reporter, 1st Series, Volume 2.djvu/199

 192 FEDERAL REPORTER. �would, doubtlesB, be entitled to some relief on aecount of the mode of serving the summonses, and the concealment of the proceedings. �The giving of the notes alone could hardly be considered any fraud. It is proved that the treasurer had full authority to manage the financial afifairs of the company and to give notes in its name. It would seem to be no fraud upon the eompany for him to give its notes for loans justly due, for which he might bave given notes at the time the loans were made. But bis accepting service of summons in his wife's suits, with intent to bave judgment taken by default, and the property of the company seized on execution to satisfy the judgment, even for a justly due obligation of the company, appears to be inconsistent with the relation of trust in which he stood to the company. It was a proceeding for his wife's interest, and therefore for his own, which might seriously embarrass the company, and if the faot of the pendency of the suit were communicated to the other officers of the com- pany some arrangement might be made with the crediter suing much more advantageous for the company. On this ground, probably, the court in which the judgments were obtained would, without hesitation, bave set aside the service of the summonses as irregular and a fraud upon the defend- ant, if application had been promptly made for such relief upon discovery by its other officers of the fraud. Perhaps, also, the corporation could bave disowned entirely the act of its treastirer, and in collateral proceedings the, judgments might possibly bave been held wholly void for want of jurisdiction in the court over the person of the defendant, the service of the summons being treated as wholly void. It is unnecessary, however, to determine that question, but such at ail events would, as it seems to me, bave been the utmost benefit which the corporation could claim from the irregularity. The defect in the judgment was at most a nullity, resulting from want of jurisdiction of the person. �How, then, was the fraud, assuming it to be fully proved, met by the company ? The fact that Mrs. Penny had recovered judgment on her claim was known to ail the officers within a ����