Fort Edward & Fort Miller Plank Road Co. v. Payne
New York Supreme Court
Appeal from a judgment entered upon the report of a referee. The action was brought to recover calls made upon the capital stock of the plaintiff’s company.
Read the full summary
Appeal from a judgment entered upon the report of a referee. The action was brought to recover calls made upon the capital stock of the plaintiff’s company. The first count of the complaint alleged that the plaintiffs were a duly incorporated plank road company under the act of the legislature of 1847, and the several acts amending the same; that five per cent on the capital Stock was duly paid in; that the articles of association were duly executed and filed, &c. according to said act; that they, the subscribers to said articles, and all who should thereafter become stockholders, became a…
1Opinion of the Court
By the Court, Hand, P. J.
It is well settled that a subscription to the capital stock of any company* from the member-1 *573ship of which a shareholder may derive pecuniary advantage, gives to the subscriber such an interest, as will support a promise to pay for the shares. Such an enterprise is a combination of means for mutual profit, and is in no sense a gift, or promise without consideration. But I think the counsel for the defendant is right in his position, that the defendant is not liable unless an express promise has been shown. The extent of the liability of a subscriber to capital stock,…
2Cases cited15 opinions
- Slee v. BloomNew York Supreme Court · 1822
- Chester Glass Co. v. DeweyMassachusetts Supreme Judicial Court · 1819
- Andover & Medford Turnpike Corp. v. GouldMassachusetts Supreme Judicial Court · 1809
- President of the Goshen & Minisink Turnpike Road v. HurtinNew York Supreme Court · 1812
- Spear v. CrawfordNew York Supreme Court · 1835
10 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Webster v. UptonSupreme Court of the United States · 1876
- Chaffee v. Rutland RailroadSupreme Court of Vermont · 1882
- Chase v. Sycamore & Courtland RailroadIllinois Supreme Court · 1865
- Carson v. Arctic Mining Co.Michigan Supreme Court · 1858