New Haven Trust Co., Rec. v. Doherty
Supreme Court of Connecticut
Action by the receiver of an insolvent life insurance company against two of its principal officers and directors, to recover damages resulting from the alleged wrongful and negligent conduct of the defendants in making a loan of its funds unauthorized by law, brought to the Superior Court in New Haven County and tried to the court, Thayer, J.; judgment for the plaintiff, and appeal by the defendants.
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Action by the receiver of an insolvent life insurance company against two of its principal officers and directors, to recover damages resulting from the alleged wrongful and negligent conduct of the defendants in making a loan of its funds unauthorized by law, brought to the Superior Court in New Haven County and tried to the court, Thayer, J.; judgment for the plaintiff, and appeal by the defendants. The averments of the complaint, which are denied by the answer, are substantially these : The defendants were actively engaged in the management of the company, and it was their duty to see that…
1Opinion of the CourtHamersley, J.
A director of a stock corporation, when acting for it in the conduct of its business, is its agent and, indirectly, the agent of all the shareholders. Like every agent, he may be personally responsible to his principal for negligence or- misconduct in conducting the business intrusted to him. Ordinarily, directors acting in good faith and within the scope of their authority are not liable for the disastrous consequences of a mere mistake in judgment. But there is no general rule of liability for wrongful neglect in the exercise of such agency, applicable to directors as a class bj themselves,…
2Cases cited4 opinions
- Briggs v. SpauldingSupreme Court of the United States · 1891
- Hun v. . CaryNew York Court of Appeals · 1880
- New Haven Trust Co., Receiver v. DohertySupreme Court of Connecticut · 1902
- New Haven Trust Co., Receiver v. DohertySupreme Court of Connecticut · 1902
3Cited by15 opinions
- Greenfield Savings Bank v. AbercrombieMassachusetts Supreme Judicial Court · 1912
- Alderman v. AldermanSupreme Court of South Carolina · 1935
- Reiley v. HealeySupreme Court of Connecticut · 1936
- McClure v. Middletown Trust Co.Supreme Court of Connecticut · 1920
- Lyman v. StevensSupreme Court of Connecticut · 1938
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