In Salomon V

In Salomon v. Salomon & Co., Mr. Salomon incorporated a business to which he loaned money, secured by a mortgage on the business assets. When the business failed, the creditors turned to Mr. Salomon, arguing that he should not be able to claim ahead as a secured creditor and, in fact, should be responsible for the company's debts. What did the Court find?

A) Mr. Salomon, by creating a fictionalized legal entity, had committed a fraud on the business's creditors, and so should bear total responsibility for the creditors' claims.
B) Mr. Salomon could not claim priority as a secured creditor, because this would amount to a conflict of interest.
C) Mr. Salomon, as the incorporator, should be responsible for paying the creditors of his business, on the grounds of unjust enrichment.
D) The company was a legal entity separate from Mr. Salomon, so Mr. Salomon could have priority as a secured creditor and bore no responsibility for the company's debts.
E) The company was a legal entity separate from Mr. Salomon, but it would not be fair to allow him to claim his money ahead of arms' length parties.