People's Sav. Bank v. Colorado Min. Exchange Bldg. Co.

Decision Date12 October 1896
CourtColorado Court of Appeals
PartiesPEOPLE'S SAV. BANK v. COLORADO MIN. EXCH. BLDG. CO. et al.

Error to district court, Arapahoe county.

Suit by the People's Savings Bank against the Colorado Mining Exchange Building Company and another for injunction. Injunction dissolved, and plaintiff brings error. Reversed.

Teller Orahood & Morgan and Robert W. Bonynge, for plaintiff in error.

Williams & Whitford, for defendants in error.

BISSELL J.

This suit concerns the right of a stockholder of a corporation to bring an action for the enforcement of corporate rights where there is a distinct failure of the corporate authorities to act in the premises, and where they are directly proceeding to misappropriate and divert the funds of the company to the prejudice of its stockholders. The Colorado Mining Exchange Building Company acquired title on the 18th of August, 1892 to the property which had theretofore belonged to the Colorado Mining Stock Exchange. It consisted of certain lots in the city of Denver, on which the exchange had erected a building. The property was conveyed to the new company, subject to certain specified incumbrances, which need not be otherwise referred to. After the new company had acquired title and gone into possession, the property was let to various persons, and on the 10th of July, 1894, there was due the new company for rents, etc., upwards of $10,000. On the day mentioned the directors of the defendants in error undertook to transfer to Martin Currigan, as assignee, title to the various personal property belonging to the company and these accounts and claims for rent, with directions to apply the proceeds to the payment of sundry claims owed by the Colorado Mining Stock Exchange, which accrued during the time that company owned the building. There are many allegations respecting the situation of these debts which were to be paid by the assignee, principally regarding the circumstance that the old claims against the Colorado Mining Stock Exchange had ceased to be debts of that company, and had become the debts of individuals whose notes the creditors held. These transactions will be disregarded, as they are wholly unimportant. After setting up all these various facts and alleging that the bank was the owner of 4,152 shares of the 5,000 shares of the stock of the company, and stating that no other shares were owned by anybody, except by five...

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2 cases
  • Just v. Idaho Canal & Improvement Co., Ltd.
    • United States
    • Idaho Supreme Court
    • 4 Junio 1909
    ... ... 99, 13 P. 161; People's ... Sav. Bank v. Colorado etc. Bldg., 8 Colo. App. 354, ... 209, 31 L. R. A. 706; ... Great West Min. Co. v. Woodmen of A., 12 Colo. 46, ... 13 Am ... ...
  • Smith v. Bulkley
    • United States
    • Colorado Court of Appeals
    • 8 Diciembre 1902
    ... ... 323, 332, 40 P. 244; People's Sav. Bank v. Colorado Min ... Exch. Bldg. Co., 8 ... ...

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