Coy v. Jones

• Decision Date: 25 November 1890
• Citation: 30 Neb. 798,47 N.W. 208
• Parties: COY ET AL. v. JONES ET AL. MARATHON COUNTY BANK v. JONES ET AL.
• Court: Nebraska Supreme Court

30 Neb. 798

47 N.W. 208

COY ET AL.

v.JONES ET AL.

MARATHON COUNTY BANK

v.JONES ET AL.

Supreme Court of Nebraska.

Nov. 25, 1890.

Syllabus by the Court.

Section 136, c. 16, Comp. St., which makes stockholders in a corporation liable for debts contracted by the corporation while its officers are in default in publishing an annual notice stating “the amount of all of its existing debts,” is quasi penal only, but is not a penalty, the evident purpose being to secure the rights of creditors; and an action to recover such debts is not barred by the statute of limitations in one year. Howell v. Roberts, 45 N. W. Rep. 923.

Error to district court, Webster county; GASLIN, Judge.Kaley Brothers, for plaintiffs in error.

Case & McNeny, for defendants in error.

PER CURIAM.

The plaintiffs in error brought their action in the court below, alleging that on February 4, 1884, the Nebraska Lumber Company, of Red Cloud, in said county, became a duly-authorized corporation under the laws of this state, of which corporation the defendants were stock holders and members, and were responsible as such, under section 136, c. 16, Comp. St.; that on April 10, 1888, the plaintiffs recovered judgment in the court below against the said corporation, upon certain promissory notes given for goods sold and delivered to it for $1,975.84, and costs, for the collection of which final process was issued and served, and returned nulla bona; and that said corporation was thenceforward and hitherto insolvent. The plantiffs further allege that, for more than one year next prior to the time of contracting said indebtedness, the corporation had not given notice of the amount of its existing debts in a newspaper printed in said county or elsewhere, as required by the statute, of its incorporation, by reason of which default the defendants, as stockholders, became personally liable for the debts, and for said judgment recovered against the Nebraska Lumber Company. To this complaint the defendants demurred as insufficient to constitute a cause of action, which defense the court below held to be sufficient, and gave judgment thereon. From the record, it appears that this action was brought in the court below on September 28, 1888, to secure the rights of the plaintiffs, as creditors, against the defendants, as stockholders, of a defaulting and insolvent corporation. The defendants' counsel, in their brief, maintain that this is a penal action merely, and, under section 13 of the...