Richardson v. Boot

• Decision Date: 13 October 1902
• Citation: 70 P. 454,18 Colo.App. 140
• Parties: RICHARDSON v. BOOT.
• Court: Colorado Court of Appeals

70 P. 454

18 Colo.App. 140

RICHARDSON v. BOOT.

Court of Appeals of Colorado

October 13, 1902

Error to district court, Montrose county.

Action by B.F. Richardson against William Boot. Complaint dismissed and plaintiff brings error. Affirmed.

H.C Allen, for plaintiff in error.

S.S Sherman, for defendant in error.

GUNTER J.

A general demurrer to the complaint was sustained, and from the order dismissing it plaintiff is here on error. This was an action at law by a single creditor against a single stockholder of an insolvent bank to recover against the stockholder individually upon certain certificates of deposit. The complaint alleges the existence of a banking corporation organized under the state laws; that defendant was at a certain date a stockholder in said bank to the amount of 10 shares at a par value of $100 per share. It further alleges that while defendant was such stockholder certain certificates of deposit were issued by the bank to plaintiff's indorser; that thereafter defendant transferred his stock in the bank, and within one year after such transfer the bank became insolvent. This action was instituted, as above stated, to recover of defendant individually. The statute relied upon to justify a recovery is as follows: "The *** stockholders of every banking corporation formed under the provisions of this act shall be individually liable for all debts contracted during the term of their being *** stockholders of such corporation equally and ratably to the extent of their respective shares of stock in any such corporation, *** except that, when any stockholder shall sell and transfer his stock, such liability shall cease at the expiration of one year from and after the date of such sale and transfer." 1 Mills' Ann.St. § 518. As seen from this statute, the recovery had against each stockholder must be "equally and ratably to the extent of their respective shares of stock in any such corporation." Such recovery can be had only by giving the court information upon which to base it. In addition to other facts, the complaint must allege the number of shares of stock issued by the insolvent corporation, the number of shares held by the stockholders respectively, the amount of debts of the corporation for which defendant and other stockholders are liable, together with the dates when created; otherwise it is impossible to know the amount for which judgment should be rendered against a...