Brouwer

Summary

The Court held that under §9 of the Revised Statutes a transfer made by a corporation that is insolvent or in contemplation of insolvency with intent to prefer a creditor is void regardless of the creditor’s knowledge, and therefore reversed the lower court’s nonsuit and ordered a new trial. The majority rejected the trial court’s requirement that the plaintiff prove open insolvency or the defendant’s knowledge, finding that actual insolvency alone suffices. Justice Gardiner dissented, arguing that knowledge of insolvency and intent to prefer are required.