Handy v. . Draper
New York Court of Appeals
Appeal from order of the General Term of .the Supreme Court, in the second judicial department, made December 14, 1880, which reversed a judgment in favor of plaintiff, entered upon a decision of the court on trial without a jury.
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Appeal from order of the General Term of .the Supreme Court, in the second judicial department, made December 14, 1880, which reversed a judgment in favor of plaintiff, entered upon a decision of the court on trial without a jury. (Deported below, 23 Hun, 256.) This action was brought against defendant as a stockholder of the Manhattan Sewing Machine Company, a corporation organized under the General Manufacturing Act (Chap. 40, Laws of 1848), to enforce the liability to creditors imposed by said act (§ 10), where the whole amount of capital stock has not been paid in. The defense among other…
1Opinion of the Court
Andrews, Ch. J.
We think that by the true construction of section 24 of the Manufacturing Corporations Act of 1848, it is a condition precedent to maintaining an action against a stockholder, to enforce the liability to creditors imposed by the tenth section, that the creditor should have obtained judgment upon his claim against the company, and that an execution should have been issued thereon and returned unsatisfied. The claim that the last clause of the section applies only to actions against persons who have ceased to be stockholders, makes the provision in the first part of the section…
2Cases cited1 opinion
- Kincaid v. . DwinelleNew York Court of Appeals · 1875
3Cited by16 opinions
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- Flash v. ConnSupreme Court of the United States · 1883
- National Tradesmen's Bank v. WetmoreNew York Court of Appeals · 1891
- Wheeler v. . MillarNew York Court of Appeals · 1882
- National Bank v. . DillinghamNew York Court of Appeals · 1895
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