Bailey & Storm v. Bancker
New York Supreme Court
Debt, tried before Willard, C. Judge, at the St. Lawrence circuit, in July, 1841. The plaintiffs sought to charge the defendant as a stockholder of the Rossie Galena Company for a debt due from the company.
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Debt, tried before Willard, C. Judge, at the St. Lawrence circuit, in July, 1841. The plaintiffs sought to charge the defendant as a stockholder of the Rossie Galena Company for a debt due from the company. The charter provides, that u the stockholders of the said corporation shall be jointly and severally personally liable for the payment of all debts or demands contracted by the said corporationbut before suing a stockholder the creditor must first obtain a judgment against the company upon the demand, and have an execution returned unsatisfied, in w'hole or in part. (Statutes of 1837, p.…
1Opinion of the Court
By the Court, Bronson, J.
The defendant offered to prove that the plaintiffs as well as himself were stockholders in the company at the time the debt was contracted, and the judge rejected the evidence. Can a creditor who is a stockholder recover his debt against the company from another stockholder 1 We are referred to the case of Simonson v. Spencer, (15 Wendell, 548,) to prove that the action may be maintained. The late chief justice seems to have been of that opinion; but I do not find from the statement of the case that the plaintiff in that action wus a stockholder in the company, nor…
2Cases cited2 opinions
- Allen v. SewallNew York Supreme Court · 1829
- Simonson v. SpencerNew York Supreme Court · 1836