Grand Rapids Sav. Bank v. Warren

• Citation: 52 Mich. 557,18 N.W. 356
• Court: Michigan Supreme Court
• Decision Date: 06 February 1884
• Parties: GRAND RAPIDS SAV. BANK v. WARREN.

18 N.W. 356

52 Mich. 557

GRAND RAPIDS SAV. BANK v. WARREN.

Supreme Court of Michigan

February 6, 1884

In a suit against the estate of a deceased stockholder of a bank that has failed, it is sufficient for the creditor to show that the deceased was a stockholder therein up to the time of his death, and to show the judgment record by the creditor against such bank. This proof is sufficient in cases where the liability had attached at the date of the passage of the acts of 1877, p. 129, which statute apparently takes away all remedy against the estates of deceased stockholders or against non-residentstockholders. The statute is inoperative as to cases in which the enforcement would release parties before liable.

The liability of stockholders is commensurate with that of the corporation itself and extends to costs and interest on the judgments.

Error to Kent.

Norris & Uhl, for plaintiff.

Taggart & Wolcott, for appellant.

COOLEY C.J.

This case was tried in the circuit court upon an appeal from the report of commissioners on claims, appointed by the probate court. The circuit court, sitting without a jury, made the following findings: "(1) The Grand Rapids Savings Bank is a corporation doing business at the city of Grand Rapids and elsewhere in the state of Michigan. (2) On about the month of March, 1871, the Exchange Bank of Big Rapids was organized under the general banking law of the state of Michigan; the capital stock of said bank was fixed at one hundred and fifty thousand dollars, divided into one thousand five hundred shares of one hundred dollars each. (3) That George B. Warren, now deceased, who was a resident of the state of New York, subscribed for fifty shares of the said capital stock and paid the regular assessment of fifty per cent. of the face thereof, which was called in for the working capital of the bank soon after the last date mentioned. (4) The said Exchange Bank of Big Rapids commenced business in 1871, and carried on a banking and exchange business at Big Rapids, Michigan, until about the year 1875, when, it having become deeply involved, its business was discontinued. (5) The said George B. Warren continued to hold his aforesaid stock in said bank until the time of his death, in the year 1879. (6) Between the twenty-sixth day of July, 1873, and the thirteenth day of April, 1874, both inclusive, the Exchange Bank of Big Rapids became liable to the Grand Rapids Savings Bank, as indorser of six promissory notes, all of which were dishonored and unpaid at maturity. Judgments were thereafter recovered in the circuit court for the county of Mecosta, by the Grand Rapids Savings Bank, against Exchange Bank of Big Rapids and others, for the sum due and unpaid upon said several notes. One of said judgments was recovered October 12, 1875, and the remainder of them October 24, 1876. A writ of execution was issued October 18, 1875, upon the first of said judgment which writ was addressed to the sheriff of the county of Mecosta, and was in due course returned by the sheriff wholly unsatisfied. A writ of execution was also executed October 30, 1876, upon each of the judgments recovered October 24 1876, all of which writs were addressed to the sheriff of the county of Mecosta, and were in due course returned by the sheriff wholly unsatisfied, the aggregate amount remaining due and unpaid upon said judgments, including interest to April 30, 1883, is the sum of twenty-eight thousand four hundred and eighty dollars and seventy-three cents ($28,480.73.)

"FINDINGS OF LAW.

"From the foregoing facts I find the following conclusions of law: (1) That no demand for the framing of any issue in this cause having been made by either party, and both parties having repeatedly noticed the cause for trial in this court, and the questions involved being such as appear to the court capable of trial and determination without the framing of any formal issue, it was competent for the court to proceed to try the cause without the framing of a formal issue, and any objection upon that ground must be deemed to have been waived. (2) That the remedy given by act No. 141 of the Session Laws of 1877, is not exclusive of the remedy claimed in this cause. (3) The entries in the stock-ledger of the Exchange Bank of Big Rapids are competent evidence to show that George B. Warren was a stockholder in that bank, although the same fact was fully proven by the testimony of the witnesses sworn upon the trial, and the letters of George B. Warren. (4) That the Grand Rapids Savings Bank, appellant, is entitled to recover judgment in this case against the estate of George B. Warren, deceased, for the sum of nine hundred and fifty-three dollars and fifty-seven cents, ($953.57,) that being the ratable proportion due from the said estate as owner of fifty shares of the capital stock of the Exchange Bank of Big Rapids of the entire $28,607.03, due the Grand Rapids Savings Bank from the Exchange Bank of Big Rapids, upon the judgments aforesaid."

Upon these findings judgment was rendered against the estate in the circuit court, and the case is brought to this court by writ of error.

Proof of the plaintiff's case was made by showing, by the stock-ledger of the Exchange Bank of Big Rapids, that Warren in his life-time, had a certain amount of stock in that bank which did not appear to have been transferred, and then by showing a judgment recovered by the plaintiff against that bank. This showing gave a basis upon which to compute the liability of the defendant estate. It is insisted on the part of the defense that the judgment against the bank was not evidence of the demand as against the stockholder. It is admitted that it would have been evidence under the general banking law before the amendment made to it in 1871. By the original law a...