Bailey v. Sawyer
U.S. Circuit Court for the District of Minnesota
At law. This is a common law action brought [by C. P. Bailey, receiver, against Andrew J. Sawyer] to enforce the individual 'liability of a stockholder in the First National Bank of Duluth, and to recover the amount of an assessment ordered by the •comptroller of the currency, to the extent of seventy-five per centum of the par value of the shares of the capital stock of said bank, under and by virtue of the act of congress in relation to national banks.
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At law. This is a common law action brought [by C. P. Bailey, receiver, against Andrew J. Sawyer] to enforce the individual 'liability of a stockholder in the First National Bank of Duluth, and to recover the amount of an assessment ordered by the •comptroller of the currency, to the extent of seventy-five per centum of the par value of the shares of the capital stock of said bank, under and by virtue of the act of congress in relation to national banks. A demurrer is interposed to the complaint. Upon the argument it is urged: 1. That the complaint should set forth the facts and data upon…
1Opinion of the Court
NELSON, District Judge.
The comptroller of the currency, by virtue of the national banking law, in winding up an insolvent bank, is vested with authority to determine when a deficiency of assets exists, so that the individual liability of the stockholders may be enforced. This liability is conditional, and was so held in Bank v. Kennedy, 17 Wall. [84 U. S.] 22, but the comptroller, in the exercise of a judicial discretion, decides, upon the data before him, when “it is necessary” . to compel contributions from stockholders to pay the debts of the bank. 'The law clothes him with this authority,…
2Cited by4 opinions
- Bennett v. WheatleySupreme Court of Georgia · 1922
- Crawford v. GambleCourt of Appeals for the Sixth Circuit · 1932
- Young v. WempeU.S. Circuit Court for the District of Northern California · 1891
- Howarth v. AngleAppellate Division of the Supreme Court of the State of New York · 1899