Rainey v. Michel

The defendant; Herman Michel, appeals from a judgment in favor of the plaintiff for $75,550, rendered in an action brought by the Superintendent of Banks in an attempt to enforce a stockholder’s liability under the Bank Stockholders Liability Act. (Stats. 1931, p. 338.)

The Marine Bank of Santa Monica was organized under the banking laws of this state. Its shares of capital stock were of the par value of $100 each, with 1166 shares outstanding. The defendant owned 780% of these shares on August 14, 1931.

The bank became insolvent and the plaintiff, in the exercise of his statutory powers as…