Morgan v. Schornick

• Decision Date: 28 June 1934
• Docket Number: 25898
• Citation: 191 N.E. 141,207 Ind. 225
• Parties: Joseph S. MORGAN, Ivan C. Morgan, Joseph H. Shea, v. Frank L. SCHORNICK, as Receiver, etc
• Court: Indiana Supreme Court

191 N.E. 141

207 Ind. 225

Joseph S. MORGAN, Ivan C. Morgan, Joseph H. Shea, v. Frank L. SCHORNICK, as Receiver, etc

No. 25898

Supreme Court of Indiana

June 28, 1934

[Rehearing denied October 9, 1934.]

1. PLEADING---Complaint---Amendment---Substitution of Parties---Receiver.---In an action by a creditor against the stockholders of a defunct bank to enforce their double liability, it was not error to amend the complaint by substituting the bank receiver as party plaintiff. p. 226.

2. BANKS AND BANKING---Stockholders---Double Liability---Receiver's Right to Enforce.---Under the Constitution, Art. 11, 6, and 4952, Burns 1926, the receiver of a defunct bank held entitled to bring an action to enforce the double liability of bank stockholders. p. 227.

3. BANKS AND BANKING---Stockholders---Double Liability---Receiver's Right to Enforce.---Section 4952 Burns 1926, authorizing a bank receiver to sue and collect stockholders' double liability, held not unconstitutional as being a legislative attempt to amend Art. 11, 6, Indiana Constitution. (Note. 4952, supra, was repealed by Acts 1929 ch. 215, 73.) p. 227.

4. BANKS AND BANKING---Stockholders---Double Liability---Limitations of Actions.---Action by receiver of an insolvent bank to enforce stockholders' double liability held brought under Art. 11, 6, Indiana Constitution; not under 3858, Burns 1926; hence, the two-year limitation on action under the latter statute was not applicable. (3858, supra, was repealed by Acts 1931, ch. 36 6, p. 90.) p. 227.

Action by a creditor of the Crothersville State Bank against Joseph S. Morgan and others, as stockholders, to enforce stockholders' double liability, wherein Frank L Schornick, receiver of said bank, was substituted as party plaintiff. From a judgment for plaintiff, defendants appealed. Affirmed.

M. B. Hottel, of Indianapolis, for appellants.

Montgomery & Montgomery, of Seymour, for appellee.

OPINION

HUGHES, Chief Justice.

This is an action wherein the appellee obtained judgment against the appellants et al., as stockholders in the Crothersville State Bank, for an amount equal to the par value of the shares of stock held by each of them respectively.

In our judgment all questions presented in this case were decided correctly by the lower court and upon authority of the case of Gaiser v. Buck (1931) 203 Ind. 9, 179 N.E. 1, 82 A. L. R. 1348, the judgment of the instant case is affirmed.

Judgment...