Lee v. Threshermen's Mutual Insurance

The sole issue presented on this appeal is: When the president and principal stockholder of a corporation deposits personal funds as security to release a judgment lien upon property of the corporation pending an appeal, and the judgment is affirmed and part of it. satisfied from the deposit, can he sue the corporation’s insurance company for negligence and bad faith in handling an offer to settle, at a reduced figure, the claim against the corporation that ripened into the judgment lien ?

The general rule is that a stockholder has no individual right of action for an alleged injury to the…