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Show APRIL 28, WEDNESDAY, 1971 THE DAILY New Actions Murray City Court 51595- - Collection Unllalted Agency ve. .fry P. Hmalli t11.50 bad ehacki D. E. Halliday, etty 5159- 6- Aaariean Cradit Corp. va. Pinch 85.84 aarvieaa 0. E. halliday, atty J. Charlie 51597- - Cradit Enforeeaent Aganey va. Charlaa B. Vhitingi 144.00 bad cheek D. E. halliiftjy, atty - Craybar E lactic Ce.v a. Aaan. Inc. $485 .93 opan Hyer account R. J. Catling, atty 51596- oervcloai B. Hal a, M. atty - western Stataa Cradit Aaa. va. Clara Pantylai HZ4.04 aarvieaa B. H. Hala, atty 50600- 51601- - Sacurity Adjuataant Buraau Inc. Tata Topa Mft. Inc. - Sacurity Adjuataant Buraau Dine. va. Yvonne Ruehingi $84.B8opon aecounti E. H. Fankhuaaer, atty 51602- - Inc. va. I78.41 Sacurity Adjuataant Buraau Ronald A Baaala Craaferdf opan aecounti R. H. Fankhauaar atty opan aecounti E. H. Fankhm - Collection Recovery Bureau Ine.va. David Knaptoni 1178.00 aervlceai R. R. Nealen, atty 51605- 51606- - Inc. va. Collect iona Recovery Bureau Rax A. A Mra. Gardner etty - Collect iona Recovery Bureau 1124 .20 aecounti R. R. Nealen, etty open Mete, etty - Fidelity Industrial Co. va. Cordon L. A 1999 .00 preaiaeery Credit Janie Villleae notei A.M. etty Metea, 51611- - Courteey Indue at 1 Credit A Elisebeth Palaar Co. ve. Willi I556.00 proaiaeery notei A.M. etty Heote, - Fulleell Motor Product a va. Ronald Raoeendael, Naal Neleon Pearl wUlcett dba Rooeendaal Conot ruction A Mint. Corp.i 1284.04 open aecounti C. E. Mengan, atty 51613- - Royal K. Hunt Alloy, Inc. D. K. 51614- ve. Dental 455.00 contract 1Waetern Stataa Credit Aean. va. Heraan B. Tench 79.02 open aecounti R. S. Barton, atty 5159- 2Heetern State Credit Aean. va. Tnaae M. Sith 150.32opon aecounti R. S. Barton, atty 5159- weetern Stataa Credit Aeen. va. Bruce A Noraa Stevenei 192 .09 aervleeai R. S. Barton, atty CollKtionn Unllaltd ve. Albert Broil for d ehck B. Or ton 50.00 ve. Intaretete Collection Willi P. Moore dba Moore Vending A Dletributingi 70.00 bad check B. M. Fullaar, atty 51616- - Villi C. Cell dba Maeterersrt Four ve. Cornere Truck Upholatery Service, 408.00 Inc C. St ear t, open eecount atty 51617- - Kipp A Chrietien ve. L. Boyd 1100. 00 oerviceei Eyr, etty 51618- Penroee Jiaai J. A. Whit Rlty, ve. Kenneth A Ceraldlne Bennett 123 .02 1 proaieeory not B. M. Inc. Fullaar, atty Accredited Collection Agency ve. Tore Poderaoni I175.90 oerviceei 51620- A - D. H. MeCerry, pltf. Dexter H. MeCerry ve. Arthur A. Kellyi l41.75 prealuaei D. Wallace G. Mackintosh vs. Kia Kitterr; $75.50; euranca 51620. Wallaee G. Mackintosh vs. Kia A Mra. Morgan; $762.00; rant A daaagos R. R. Neslen, atty ' H. MeCerry, xtr D 51621H. Mc Gerry A. $41.75; Insure nc D. H. MeGarry, atty 51622. A. A Dexter H. Mra. preaiuaa; Mc Garry vs. Welter $75.50?' insurance Gerry, atty Kitterer; D. H. Mc D. H. MeGarry, etty Interstate Collections vs. 5162-4Thoa.e Zarkou; $132.99; services B. N. Fullaar, atty 51625- - Interstate Collections vs. Robert F. A Delores F. Rlchttr; $340.00; serricei; B. M. Fullaar, 51627. Mary S. lneuranee J pltf. Fletcher J. R. Brown, 5163- 0- Business Thoaae H. Zarkou; R. 51631. Skog; $311.67; open account; Carling, atty Duane A Dexter H. MeCerry va. Scott Grant aultoni l198.00lnauranea 0. M, McCarry, atty Defendant Counoalt Er el shoe King, F. Robert Reeder J. 2, The dates of these alleged sales are not given; but even if the aales were to the repeal of the statute, we do not see how the appellant is affected by prior a violation thereof, for as to it the sales would be void, and it could enforce its remedies against the purchaser the same as it could against the seller to the extent of the goods transferred. If the aales were aubaequent to the repeal of the Bulk Salea Act and in violation of Chapter 6 of the Uniform Commercial Code, 5, known as Bulk Transfers, the appellant ia not hurt because Section ineffective U. C.A. 1953 (Replacement Vol. 7B), makes the sale againat a creditor 10 who ia not paid or given days' notice of the transfer. 70A-6-10- The complaint alleges that "Inland" waa tranaferred. It doea not state the aaaets of Inland Printing Company were tranaferred, and we are at a that loas to know whether the appellant wa alleging a transfer of atock of the corporation from the defendants to Taggart and Mulvay or a sale of the aaaets of the corporation to them. The law relative to mismanagement by, and negligence on the part of, officera and directors of a corporation is set out in 19 Am. Jur. 2d, Cocpora-tion- a $1350, as follows: Directors or officers may be liable to the corporation or stockholders for mismanagement of the business of the corporation or waste of its assets; but according to a number of cases, they are not liable to ita creditors for mere mis man- -' agement or waste of assets constituting a wrong or breach of duty as to the corporation. The rule generally followed by the authorities is that a creditor of a corporation may not maintain a personal action at law againat the officers or directors of a corporation who have, by their mismanagement or negligence, committed a wrong againat the corporation to the conaequent damage of the creditor. The reason given for the rule is the entire lack of privity between the parties. There is certainly no contractual relation between them, nor any other legal relation which would raise a duty, on the part of directors or officers, to the creditor to exercise care in the management of the affairs of the corporation. The duty to exercise diligence and care is one owed to the corporation, and it ia elementary law that one person cannot maintain an action against another for a wrong to a third person which injures him only incidentally. However, there are other cases which seem to hold an opinion contrary to the general propoaition as expressed above. These actions seem to be maintained upon the theory that directors are truatees for creditors, but generally these cases have some element of fraud and deceit involved therein. . . . See also cases cited in the annotation at 50 A. L. R. 462. vs. Erie trial court correctly held that the second amended did not a cause of action against the individual defendants. state complaint The judgment is affirmed with costs to the respondents. R. J. Cradit Enforcement Buraau vs. Judy Whittle; $50.36; bad WE CONCUR: check; D. E. Rilllday, atty Cradit Enforeeaant Bureau vs. L. Anderson; $256.50; D. E. Halliday, atty A Mary Darryl services; Cradit Bureau of SU) va. Duane Giles; $266 ,95; open aoeount; R. G. 51634. Haslaa, E. R. Callister, Jr. , Chief Justice R. L. Tuckett, Justice atty Evans A Asan. va. Jia massy; $98.18; open account; 0, E. 51635. David W. A F. Henri Henriod, Justice Gravel Rook Seasions dba Quality Products vs. Asphalt Inc.; $672.84; open account; Bob H. C. Duffey Palaar The Bulk Salea Act waa repealed by Chapter 154, Article 10, Section Laws of Utah 1965. We think the Co. Sherwin-VAllia- as Soranson Sand - A J. Carling, atty 51636. pltf. Certified Collection Agency va. $300.00; opan account atty Dexter H. MeCerry va. falter Mr. Klttoreri I75.50 lneurence dba 5162- 9- Business Collection Agency vs. Terrl Cooper; $40.60; contract; R. J. Carling, atty Mangan, 51623- Anna R. Brown, 51628. Business Collection Ageney vs. Richard R. Dock; $465.40; contract R. J. Carling, atty 51622- - D. H. MeCerry, Certified atty A. praiua atty A Collection Service va. Ronald P. Vlvan K. Webb; $5.00; aarvicea; H A vs. Arthur prraiuas 51623. Dexter H. MeGarry vs. Scott Grant Walton; $198.00; lsfranc preaduai 51633. wellece C. Packintoeh va. Mra. Morgeni 1762 .00 lneuranee PaiuAe 51621- atty Pond, Fullaar, atty B. M. Accredited Collection Agency Klly; L. M. Cummings, Clerk Fullaar, atty M. vs. Tore Pederson; $17590; services E. J. Pond, atty - 1971 The question to be determined on this appeal ia what rights, if any, does a creditor of a corporation have againat officers and directors for negligent mismanagement of its affairs. The appellant doea not claim that there waa any fraudulent or deceitful acta committed by any of the respondents. It doea allege in its second amended complaint that the individual defendants "did cause or allow Inland to be conveyed, aold or transferred to Taggart in violation of the Utah Bulk Sales Act" and that later, after Taggart conveyed Inland back to these defendanta (corporate officers and directors), said defendanta sold to defendant Mulvay in violation of the Bulk Salea Act. 10-10- Penrose White Realty, Inc. vi. A Garaldin Bennett; $23.02; Kenneth 51632. 51619- - J. bad 51618- - Mrs. April 22, The appellant herein held a note signed by the defendant corporation and aecured by a chattel mortgage and alao a mortgage on realty. The present action is to foreclose the mortgagee and to recover the amount of the deficiency, if any there be, from the officera and directors of the corporation becauae of alleged negligent mismanagement of the corporate business. Ageney atty va. aarvleaai Fullaar, atty 5161- 5- 25.00 Inland Printing Company, a Utah corporation, William A. Mulvay, D. Keith Barnea, Wendell Barnes, Harold Galley, H. J. Barnes Charles W. Halford, Charles Taggart, aka Charles W. Taggart, et al. , Defendants and Respondents. ELLETT, Justice: - weetern Statee Cradit Aaan. va. Laarenee R. Schaferi 189 .25 1 proaiooBry notoi R. S. Barton, atty 5159- 4- No. 12255 Bruea C. Cohno Cradit Aeen. Farcy; $78.00; services; J. - Interetate Collection M. Kia Heetern Stat 9- 51626. Mary S. Fletcher dba Collection Service v. Harold Salth, atty Arthur B. E. Barton, atty va. Jaaee H. Pureeri 8381 .90 aervleeai R. S. Barton, atty Induealal Credit 51609- - Fldality Industrial Credit Co.ve. Richard A. A Albarte Vheoley 420.49 proeiaeory notei A.M. J. 5156- 51620- fraalaeyi 1537.95 1 prioalaaery notei A.m. Hatoe, atty 51612- Cradit Aeen. $675 .39 1 open Veetern Stetea Credit Aeen. ve. Cliff Pgggeai 177 .59 op n account R. S. Barton, atty A 51608- - Fidelity v Rodney A Gee 50610- Stat 51588- - 5161-9- Ine.va. Keith Anderoeni B. R. S. Equitable Life 8c Casualty Insurance Company, a Utah corporation, Plaintiff and Appellant, Plaintiff Counooli walker S. Andaroon FILED - account In The Supreme Court Of The State Of Utah v. weetern Stetea Credit Aeon, ve. Bonita Daviai 1205 .93 praalaaory notei R. 8. barton, etty 51586- promissory note; oerviceei R. R. Nealen, 1173.54 51607- va. 51593- - - Sacurity Adjuataant Bureau Ine.va. Caorgia L. Arroyai 195.10 51604- 51585a eootorn Stataa CreditAaen. John D. Butt worth 4B5.90 poraiaeory ndai R. S. Barton, atty 51590- IS19.16 opan aecounti E. N. Fenkhaueer, atty 51603- Hardware Co opan aecounti R. J. Carl in g, etty - - A Paul Buttoni 1195 96 51567Western va. Hone Lubckei western Stataa Cradit Aaan. va. Richard ?A. Saaualaoeni 149.00 51599- v. Furniture Mutual 515B- 4- PAGE FIVE RECORD Verhaaren, atty J. Allan Crockett, Justice |