Babbitt v. Read
Court of Appeals for the Second Circuit
Appeal from the District Court of the United States for the Southern District of New York. Suit in equity by Byron F. Babbitt, trustee in bankruptcy of the Randolph-Macon Coal Company, against William A. Read, Seth Sprague Terry, and. John S. Melcher, executors of James T. Gardiner, deceased, William T. Van Brunt, and others. Decree for complainant for part of his claim, and both parties appeal.
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Appeal from the District Court of the United States for the Southern District of New York. Suit in equity by Byron F. Babbitt, trustee in bankruptcy of the Randolph-Macon Coal Company, against William A. Read, Seth Sprague Terry, and. John S. Melcher, executors of James T. Gardiner, deceased, William T. Van Brunt, and others. Decree for complainant for part of his claim, and both parties appeal. This case arises upon two appeals from a decree in a suit in equity brought by a trustee in bankruptcy of a Missouri corporation to collect upon stockholders’ liabilities for the issuance of stock for…
1Opinion of the CourtRearned Hand, District Judge
(after stating the facts as above). [1] The first question arises under the plaintiff’s appeal and brings up the meaning and validity of the “no recourse” clause. The plaintiff’s idea that the stockholders’ liability is not an obligation founded on the bonds, but only on the statute, seems to us verbal and scholastic. The statute is a necessary factor of the obligation, to be sure; but the obligation is none the less to pay the debt created by the bonds. If more words than are in article 22 of the mortgage are necessary to comprise such an obligation, we do not know where they could be found.…
2Cases cited33 opinions
- Burgess v. SeligmanSupreme Court of the United States · 1883
- Converse v. HamiltonSupreme Court of the United States · 1912
- Bucher v. Cheshire RailroadSupreme Court of the United States · 1888
- Clark v. BeverSupreme Court of the United States · 1891
- McClure v. Township of OxfordSupreme Court of the United States · 1877
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3Cited by23 opinions
- Syracuse Engineering Co. v. HaightCourt of Appeals for the Second Circuit · 1940
- Burns Mortgage Co. v. FriedSupreme Court of the United States · 1934
- Chittenden Trust Co. v. Sebert Lumber, Co. (In Re Vermont Toy Works, Inc.)United States Bankruptcy Court, D. Vermont · 1987
- Allan v. Moline Plow Co.Court of Appeals for the Eighth Circuit · 1926
- Harrigan v. BergdollSupreme Court of the United States · 1926
18 more not listed; retrieve them via the Exa API.