Thompson v. Bemis Paper Co.
Massachusetts Supreme Judicial Court
Bill in equity, under the St. of 1870, c. 224, § 42, by a judgment creditor, in behalf of himself and all other creditors of the Bemis Paper Company,, against said corporation and Daniel D. Warren, Boswell P. Crafts, Pliny J. Crafts and C. G. Buttrick, stockholders in the corporation, to enforce the personal liability of the latter, on the ground that the capital of the corporation had been withdrawn and paid to the stockholders.
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Bill in equity, under the St. of 1870, c. 224, § 42, by a judgment creditor, in behalf of himself and all other creditors of the Bemis Paper Company,, against said corporation and Daniel D. Warren, Boswell P. Crafts, Pliny J. Crafts and C. G. Buttrick, stockholders in the corporation, to enforce the personal liability of the latter, on the ground that the capital of the corporation had been withdrawn and paid to the stockholders. St. 1870, c. 224, § 39, el. 2. The case was heard by Soule, J., and reported for the determination of the full court in substance as follows: The plaintiff, upon a…
1Opinion of the CourtGray, C. J.
A creditor who is also a stockholder of a corporation, and as such liable for its debts, is not entitled to the remedies afforded by statute to creditors against stockholders for the debts of the corporation. Thayer v. Union Tool Co. 4 Gray, 75. Potter v. Stevens Machine Co. ante, 592. The mere fact that the plaintiff was the equitable owner of shares might not indeed subject him to the liabilities or disabilities of a stockholder. Crease v. Babcock, 10 Met. 525. Johnson v. Somerville Dyeing & Bleaching Co. 15 Gray, 216.
• But this plaintiff, at the time of the commencement of the suit in…
2Cited by3 opinions
- Bank of Fort Madison v. AldenSupreme Court of the United States · 1889
- Digney v. BlanchardMassachusetts Supreme Judicial Court · 1917
- Shurlow v. LewisMichigan Supreme Court · 1912