Spooner v. Bay St. Louis Syndicate

• Decision Date: 07 December 1891
• Citation: 47 Minn. 464
• Parties: H. A. SPOONER <I>vs.</I> BAY ST. LOUIS SYNDICATE and others.
• Court: Minnesota Supreme Court

47 Minn. 464

H. A. SPOONERvs.

BAY ST. LOUIS SYNDICATE and others.

Supreme Court of Minnesota.

December 7, 1891.

Appeal by Henry C. Davis, a shareholder in the defendant company, (impleaded with the corporation and its other shareholders,) from a judgment of $3,495.83, rendered against him in the district court

for Hennepin county, where the action was tried by Smith, J. A former appeal (by the corporation) in the action is reported 44 Minn. 401.

J. F. Fitzpatrick, for appellant.

Fred. B. Dodge, for respondent.

MITCHELL, J.

The plaintiff, a judgment creditor of the Bay St. Louis Syndicate, brought this action under Gen. St. 1878, c. 76, against the corporation and several of its stockholders, including the appellant, Davis. He alleged in the complaint that he brought it in his own behalf, and on behalf of all other creditors of the corporation who might exhibit their claims and become parties to the action. The complaint also alleged that the plaintiff had recovered judgment against the corporation for $1,311.30, upon which execution had been issued and returned wholly unsatisfied; that the appellant and the other defendant stockholders were indebted to the corporation for unpaid stock subscriptions in various amounts, the indebtedness of Davis on that account being alleged at $4,500; that the corporation had no other assets with which to satisfy its debts; that the plaintiff had no knowledge or information sufficient to form a belief as to what other indebtedness the corporation owed, or to whom the same was due. The relief prayed for was a sequestration of the assets of the corporation, and especially these claims against the stockholders for unpaid stock subscriptions; that a receiver of the same be appointed; that the court take an account of the property and of the debts due to and from the corporation; that notice be given to creditors to exhibit their claims and become parties to the action; that, if it should appear upon the accounting that the corporation had no other property out of which to pay its creditors, the court should proceed to ascertain the liability of the respective stockholders on account of unpaid stock subscriptions, and by judgment enforce the same, or so much thereof as necessary to satisfy the indebtedness of the corporation apparent to the court; and that the plaintiff have such other and further relief as to the court might seem proper. The summons in the action was served on the appellant, but he never made any appearance therein. Several creditors other than plaintiff appeared and became parties to the action by exhibiting and proving their claims, amounting in the aggregate to much more than the amount alleged to be due from Davis to the corporation. The court found that the amount due from Davis to the...