Walton Lumber Co. v. Commonwealth Lumber Co.
Washington Supreme Court
Appeal from a judgment of the superior court for King county, Smith, J., entered February 11, 1916, dismissing as to certain defendants an action by a receiver to establish liability for unpaid stock subscriptions, tried to the court.
1Opinion of the Court
Mount, J. —
The controlling question in this case is whether th'e original subscribers to the capital stock of a corporation,, who have, in good faith, sold and transferred their stock while the corporation was a solvent, going concern, may be held liable to subsequent creditors upon their original unpaid stock subscriptions, when the corporation, after such transfer, becomes insolvent.
The facts upon which this question arises may be briefly stated as follows: The Commonwealth Lumber Company was organized on November 10, 1911, by sixteen persons, who were presidents of mill companies operating…
2Cases cited1 opinion
- Stewart v. Walla Walla Printing & Publishing Co.Washington Supreme Court · 1889
3Cited by2 opinions
- Butts v. KingSupreme Court of Connecticut · 1924
- Murphy v. PantonWashington Supreme Court · 1917