Marsh v. . Kaye
New York Court of Appeals
Appeal from a judgment of t-lie Appellate Division of the Supreme Court in the first judicial department, entered December 12, 1899, affirming a judgment in favor of defendants entered upon a dismissal of the complaint by the court on trial at Special Term. The nature of the action and the facts, so far as material, are stated in the opinions. The liability of the directors is not penal, but contractual in its nature. [Rogers v. Decker, 131 N. Y. 490; Nat.
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Appeal from a judgment of t-lie Appellate Division of the Supreme Court in the first judicial department, entered December 12, 1899, affirming a judgment in favor of defendants entered upon a dismissal of the complaint by the court on trial at Special Term. The nature of the action and the facts, so far as material, are stated in the opinions. The liability of the directors is not penal, but contractual in its nature. [Rogers v. Decker, 131 N. Y. 490; Nat. Bank v. Dillingham, 147 N. Y. 603.) This action is maintainable on the theory of preventing a multiplicity of suits. (Story v. Furman, 25…
1Opinion of the CourtCullen, J.
I agree with Judge Bartlett in the view that the liability of the directors in this action is essentially the same in character as that of stockholders under various statutes regulating the incorporation of corporations, differing from the latter only in degree. -So far as the Appellate Division seems to have entertained a different opinion, I think that learned court erred. But this concession does not lead to the conclusion that the court below erred in its decision. It cannot be questioned that under the statute the defendant directors became personally liable for the debts they contracted…
2Cases cited4 opinions
- O'Brien v. . FitzgeraldNew York Court of Appeals · 1894
- Dykman v. . KeeneyNew York Court of Appeals · 1897
- Bauer v. PlattNew York Supreme Court · 1893
- Empire State Savings Bank of Buffalo v. . BeardNew York Court of Appeals · 1896
3Cited by13 opinions
- Bouton v. . Van BurenNew York Court of Appeals · 1920
- Lang v. . LutzNew York Court of Appeals · 1905
- Kovarsky v. Brooklyn Union Gas Co.Appellate Division of the Supreme Court of the State of New York · 1938
- Bauer v. ParkerAppellate Division of the Supreme Court of the State of New York · 1903
- Warth v. Moore Blind Stitcher & Overseamer Co.Appellate Division of the Supreme Court of the State of New York · 1911
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