Smith v. Hurd
Massachusetts Supreme Judicial Court
This was a special action on the case, by a stockholder of the Phoenix Bank, against those who were directors of the said bank, for several years next before and at the time of the failure of said bank, in October 1842. There were two counts; one founded in nonfeasance of official duty, the other in misfeasance.
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This was a special action on the case, by a stockholder of the Phoenix Bank, against those who were directors of the said bank, for several years next before and at the time of the failure of said bank, in October 1842. There were two counts; one founded in nonfeasance of official duty, the other in misfeasance. The first count recited, as matter of inducement, that stockholders in banks are bound by law to elect a certain number of directors, who have by law the entire control and management of the business and property of the corporation, with power to appoint or elect a president and…
1Opinion of the CourtShaw, C. J.
This is certainly .a case of first impression. We are not aware that any similar action has been sustained in England, or in any of the courts of this country. It is founded on no statute. It is an action on the case, at common law, brought by an individual holder of shares in an incorporated bank, against the directors, not including the president, setting forth various acts of negligence and malfeasance, through a series of years, in consequence of which, as the declaration alleges, the whole capital of the bank was wasted and lost, and the shares of the plaintiff became of no value. The…
2Cases cited1 opinion
- Lansing v. SmithNew York Supreme Court · 1828
3Cited by7 opinions
- Strasenburgh v. StraubmullerSupreme Court of New Jersey · 1996
- Gordon v. Fundamental Investors, Inc.District Court, S.D. New York · 1973
- The National, C., Co. v. WorkNew Jersey Court of Chancery · 1932
- Goetz v. Manufacturers & Traders Trust Co.New York Supreme Court · 1935
- Murphy v. CandorAppellate Court of Illinois · 1931
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