Derby v. Stevens
California Supreme Court
Appeal from a judgment of the Superior Court of the city and county of San Francisco. The action was against the appellants and eight others to recover several judgments for proportionate amounts of a debt due plaintiff from the Livermore Coal Mining Company, a corporation of which the defendants were stockholders. Only the defendants Thomas and Stevens appeal.
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Appeal from a judgment of the Superior Court of the city and county of San Francisco. The action was against the appellants and eight others to recover several judgments for proportionate amounts of a debt due plaintiff from the Livermore Coal Mining Company, a corporation of which the defendants were stockholders. Only the defendants Thomas and Stevens appeal. The amount claimed against Thomas was three hundred and ninety-three dollars; that against Stevens was two hundred and eighty dollars. Less than three hundred dollars was claimed against either of the other defendants.
1Opinion of the CourtMcKinstry, J.
From the moment a debt is created by a corporation each of the then stockholders becomes primarily hable for his proportion of such debt. Neither by the Constitution, nor by any statute, are the several stockholders made jointly liable to each of the creditors of the corporation. Section 322 of the Civil Code authorizes two or more separate actions to be united in one, but the issues to be joined between the plaintiff and each of the defendants are separate, and may be very different, and by the express language of the section a several judgment must be rendered as between the plaintiff and…
2Cited by14 opinions
- Emery v. Pacific Employers InsuranceCalifornia Supreme Court · 1937
- Kane v. MendenhallCalifornia Supreme Court · 1936
- Hyman v. ColemanCalifornia Supreme Court · 1890
- Sellery v. WardCalifornia Supreme Court · 1942
- Miller v. CarlisleCalifornia Supreme Court · 1899
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