Rathbone v. Ayer
Appellate Division of the Supreme Court of the State of New York
Appeal from Trial Term, Chemung County. Action by James B. Rathbone, as trustee in bankruptcy of the Elmira Steel Company, against F. Wayland Ayer and others. From a judgment sustaining defendant Ayer’s demurrer to the complaint, plaintiff appeals.
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Appeal from Trial Term, Chemung County. Action by James B. Rathbone, as trustee in bankruptcy of the Elmira Steel Company, against F. Wayland Ayer and others. From a judgment sustaining defendant Ayer’s demurrer to the complaint, plaintiff appeals. The complaint shows the appointment of the plaintiff as trustee in bankruptcy of the Elmira Steel Company, a bankrupt; that the said company was organized with a capital stock of $500,000, divided into 5,000 shares, at par value of $100 each; that the certificate of incorporation fixed the amount with which the corporation should begin business at…
1Opinion of the CourtSmith, J.
By section 54 of the stock corporation law (chapter 688, p. 1841, Laws 1893), as it read at the time of the commencement of this action, the stockholders of every stock corporation were made personally liable to its creditors, to an amount equal to the amount of capital stock held by them, respectively, for every debt of the corporation, until the whole amount of its capital stock issued and outstanding at the time such debt was incurred should have been fully paid. This liability is wholly statutory, and in the nature of a penalty. It is by the statute given to the creditors, and not to the…
2Cases cited10 opinions
- Scovill v. ThayerSupreme Court of the United States · 1882
- Sanger v. UptonSupreme Court of the United States · 1875
- Hatch v. DanaSupreme Court of the United States · 1880
- Stoddard v. . LumNew York Court of Appeals · 1899
- Swearingen v. Sewickley Dairy Co.Supreme Court of Pennsylvania · 1901
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3Cited by3 opinions
- Central Consumers Wine & Liquor Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- In re South Shore Co-operative Ass'nDistrict Court, W.D. New York · 1938
- In re South Shore Co-operative Ass'nCourt of Appeals for the Second Circuit · 1939