Dayton v. . Borst
New York Court of Appeals
This is an action brought by the plaintiff, as receiver of an insolvent bank, organized in the State of New Jersey, to recover of the defendant the amount of his subscription to the capital stock of said bank.
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This is an action brought by the plaintiff, as receiver of an insolvent bank, organized in the State of New Jersey, to recover of the defendant the amount of his subscription to the capital stock of said bank. The judge, who tried the action without a jury, found, as matter of fact, the organization of the bank pursuant to the laws of the State of New Jersey, and that the defendant, together with six other persons, made, under their hands and seals, on the 24th of November, 1851, a certificate, and duly acknowledged the same, declaring and setting forth,- among other things, that the capital…
1Opinion of the CourtDavies, J.
Upon the facts found by the court, the judgment rendered in this action cannot be disturbed. The fact of the organization of the corporation, and the defendant’s subscription, created a legal liability on his part to pay to the corporation the amount of such subscription. This liability could be enforced, to the extent necessary to discharge and liquidate any debts or liabilities of the bank. The capital stock of the bank was a trust fund for the security of its creditors. (Mann v. Pentz, 3 Comst., 415; Case v. Grant, 15 Mass., 505; Spear v. Grant, 16 id., 92; Wood v. Dummee,. 3 Maine, 308;…
2Cases cited4 opinions
- Vose v. GrantMassachusetts Supreme Judicial Court · 1819
- Nathan v. WhitlockNew York Court of Chancery · 1841
- Lake Ontario, Auburn & New-York Railroad v. MasonNew York Court of Appeals · 1857
- Northern Railroad v. MillerNew York Supreme Court · 1851
3Cited by21 opinions
- U.S. Radiator Co. v. . State of New YorkNew York Court of Appeals · 1913
- Stoddard v. . LumNew York Court of Appeals · 1899
- Patterson v. LyndeIllinois Supreme Court · 1884
- Stone v. Penn Yan, Keuka Park & Branchport RailwayNew York Court of Appeals · 1910
- Phoenix Warehousing Co. v. . BadgerNew York Court of Appeals · 1876
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