Osgood v. Laytin
New York Supreme Court
THE plaintiffs, as receivers of the Columbian Insurance Company, an insolvent corporation, sue the defendants, some of whom are stockholders, and some are creditors of that company, to recover from the stockholders a dividend declared on its capital stock and received by them. It is averred that such dividend impaired the capital, and that some of the defendants, as creditors, are suing the stockholders to recover from them such dividends.
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THE plaintiffs, as receivers of the Columbian Insurance Company, an insolvent corporation, sue the defendants, some of whom are stockholders, and some are creditors of that company, to recover from the stockholders a dividend declared on its capital stock and received by them. It is averred that such dividend impaired the capital, and that some of the defendants, as creditors, are suing the stockholders to recover from them such dividends. The complaint asks for an injunction against the creditors, and a judgment against the stockholders for the dividends received. The present case arises on…
1Opinion of the Court
By the Court, Ingraham, J.
The defendants, who have appealed, concede that the action is properly brought against the creditors, and also that the receivers are the only persons who can collect the assets of the corporation for the benefit of the. creditors, but they contend that the complaint is insufficient ; first, because the dividend sought to be recovered was paid out of the capital, and therefore was a misappropriation and not a dividend; and, secondly, that moneys so misapplied can only be recovered in cases of fraud, and there is no' averment of fraud in the complaint. The grounds of…
2Cases cited1 opinion
- Butterworth v. O'BrienNew York Supreme Court · 1863
3Cited by9 opinions
- Upton v. TribilcockSupreme Court of the United States · 1875
- Farmers' Loan & Trust Co. v. BakerNew York Supreme Court · 1897
- South Bend Toy Manufacturing Co. v. Pierre Fire & Marine InsuranceSouth Dakota Supreme Court · 1893
- Weeks v. CornwallNew York Supreme Court · 1887
- Buckley v. HarrisonNew York Court of Common Pleas · 1895
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