Early v. Richardson
| Decision Date | 24 February 1930 |
| Docket Number | No. 133,133 |
| Citation | 69 A.L.R. 658,280 U.S. 496,74 L.Ed. 575,50 S.Ct. 176 |
| Parties | EARLY v. RICHARDSON |
| Court | U.S. Supreme Court |
Mr. R. E. Whiting, of Columbia, S. C., for Early.
Messrs. A. C. Hinds, of Kingstree, S. C., and Henry E. Davis, of Florence, S. C., for Richardson.
The court below has certified to this court the following question of law upon which instruction is desired:
'Is one, who purchases shares of stock of a national bank, liable for an assessment subsequently imposed by the Comptroller of the Currency upon the stock for the benefit of the creditors of the bank after the insolvency thereof, when it appears that the purchaser bought the stock from the registered holder thereof and received a certificate therefor endorsed in blank by the holder, with intent at the time of such purchase and delivery of giving the stock to his minor child, but without knowledge at that time of the failing condition of the bank, or intent to avoid the stockholder's liability, and when, after the acceptance of the endorsed certificate from the seller, and before the insolvency, the purchaser with like knowledge and intent, promptly presents the certificate to the bank, causes the shares to be registered and a new certificate to be issued in the child's name?'
The suit was brought to recover the amount of an assessment upon 19 shares of the capital stock of the bank ordered by the Comptroller of the Currency because the assets of the bank were insufficient to pay creditors. Richardson had purchased the stock and received three certificates therefor indorsed in blank by the seller. He delivered these certificates to the bank with verbal instructions to register the stock and issue two new certificates for 16 shares in the name of his minor son, and another one for 3 shares in the name of his minor daughter. This was done, the new certificates being retained in the custody of the bank.
When Richardson bought the stock and received the certificates therefor, indorsed by the seller, title passed, and the transfer was complete as between the parties. Johnston v. Laflin, 103 U. S. 800, 804, 26 L. Ed. 532. Thereupon, as between seller and purchaser, the purchaser alone became liable for any assessment thereafter imposed; for, as between them, it would be in disregard of all equitable principles to continue against the seller the burdens of ownership after the purchaser had become entitled to all the benefits, including the receipt of dividends. Whether under the facts the liability of the seller continued, as between him and the creditors, is a different matter not necessary to be considered; for, in any event, the purchaser, who alone is sued, is not concerned with that question. That the actual owner of the stock may be held for the assessment, although his name does not appear upon the transfer books of the bank, is well settled. Ohio Valley National Bank v. Hulitt, 204 U. S. 162, 167, 168, 27 S. Ct. 179, 51 L. Ed. 423; Davis v. Stevens, 17 Blatchf. 259, 7 Fed. Cas. 177, 178 (No. 3,653); Case v. Small (C. C.) 10 F. 722, 724; Houghton v. Hubbell (C. C. A.) 91 F. 453.
The real question is whether the intent of...
To continue reading
Request your trial
-
Heiden v. Cremin
...is no reason why this rule should not apply to national bank stock and it has been so applied: As to minors, Early v. Richardson, 280 U. S. 496, 50 S. Ct. 176, 74 L. Ed. 575; Aldrich v. Bingham (D. C.) 131 F. 363; Foster v. Chase (C. C.) 75 F. 797; and Foster v. Wilson (C. C.) 75 F. 797. As......
-
Anderson v. Abbott
...21 S.Ct. 878, 45 L.Ed. 1218; Ohio Valley Nat. Bk. v. Hulitt, 204 U.S. 162, 27 S.Ct. 179, 51 L.Ed. 423; Early v. Richardson, 280 U.S. 496, 50 S.Ct. 176, 74 L.Ed. 575, 69 A.L.R. 658; Forrest v. Jack, 294 U.S. 158, 55 S.Ct. 370, 79 L.Ed. 829, 96 A.L.R. 1457. A receiver may sue both—partial sat......
-
Hood ex rel. North Carolina Bank & Trust Co. v. North Carolina Bank & Trust Co.
... ... [184 S.E. 58] ... contract." To transfer stock directly to a minor ... leaves the transferor "liable for the ... assessment." Early v. Richardson, 280 U.S ... 496, 50 S.Ct. 176, 74 L.Ed. 575, 69 A.L.R. 658 ... However, ... in Hood v. Martin, 203 N.C. 620, ... ...
-
Bacon v. Barber
...assessment, although his name does not appear upon the transfer books of the bank, is well settled." Early v. Richardson, 280 U.S. 496, 499, 50 S.Ct. 176, 177, 74 L.Ed. 575, 69 A.L.R. 658; Forrest v. Jack, 294 U.S. 158, 162, 5'5 S.Ct. 370, 372, 79 L.Ed. 829; 96 A.L.R. 1457, rehearing denied......