Scott v. Eagle Fire Co.
New York Court of Chancery
The Eagle Fire Insurance Company was one of the corporations rendered insolvent by the great fire in New-York, in December, 1835; and this bill was filed by some of the stockholders, in behalf of themselves and others, claiming all the surplus funds of the company in the hands of the receivers, beyond the capital stock of the company at the time of the fire which produced the insolvency.
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The Eagle Fire Insurance Company was one of the corporations rendered insolvent by the great fire in New-York, in December, 1835; and this bill was filed by some of the stockholders, in behalf of themselves and others, claiming all the surplus funds of the company in the hands of the receivers, beyond the capital stock of the company at the time of the fire which produced the insolvency. It appeared by the bill and answer, that at the time of making the last dividend, a little short of six months previous to the great fire, the surplus fund, beyond the capital stock and the dividend then…
1Opinion of the Court
The Chancellor.
The claim made by the appellants in this case is founded upon the erroneous supposition that it is the duty of the directors of an insurance company to divide all its surplus funds beyond its capital stock, periodically, among its stockholders; leaving such capital stock alone as the fund to which the creditors of the company, who become such by the loss of property insured, are to look for remuneration. But as I had occasion to say in another case, (De Peyster v. The American Ins. Co. and others, In Chan. 25th May, 1837,) the capital stock of an incorporated insurance company…
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