Williams v. Meloy

• Citation: 73 N.W. 40,97 Wis. 561
• Parties: WILLIAMS v. MELOY ET AL.
• Decision Date: 16 November 1897
• Court: United States State Supreme Court of Wisconsin

97 Wis. 561

73 N.W. 40

WILLIAMS

v.MELOY ET AL.

Supreme Court of Wisconsin.

Nov. 16, 1897.

Appeal from circuit court, La Fayette county; George Clementson, Judge.

Action by John P. Williams as creditor of the Shullsburg Bank, in his own behalf and in behalf of all the creditors of the Shullsburg Bank, and John P. Williams as assignee of all the property and effects of the said Shullsburg Bank for the benefit of its creditors, against the Shullsburg Bank, George W. Douglas, and others. From an order overruling a demurrer to the complaint, defendants appeal. Affirmed.

This is an action to enforce the statutory liability of stockholders in an insolvent bank, under section 47, c. 479, Laws 1852. The action is brought by the plaintiff as a creditor and as the assignee under a voluntary assignment of the Shullsburg Bank. The complaint alleges that the bank is a state banking corporation, duly organized, with a capital stock of $50,000, and that it commenced business in September, 1886, and continued doing a general banking business until September 15, 1896; that on the last-named day it was insolvent, and made a general assignment for the benefit of its creditors to one Charles T. Douglas, who afterwards resigned his trust, and thereupon that the plaintiff was appointed such assignee October 21, 1896, and duly qualified as such, and ever since has been such assignee; that since January 1, 1894, said bank has been insolvent, and now owes debts exceeding $57,000, and that its assets, which are all in the hands of the plaintiff as assignee, do not exceed $20,000, leaving a deficit of more than $35,000; that the plaintiff is a creditor of said bank in the sum of $100, and has duly proved his debt; that the stock of said bank, amounting to $50,000, is owned by the defendants (setting forth the amount owned by each), and that two of the defendants, owning stock to the amount of $31,500, are insolvent; that the creditors of the bank are numerous, and that more than 140 of such creditors, whose claims aggregated more than $55,000, have already proved their debts; that the plaintiff brings action as assignee of the bank, in behalf of all the creditors, and also as a creditor, in his own behalf and in behalf of all other creditors. The prayer is (1) that an account be taken of the property and debts of the bank; (2) that all creditors be made parties; (3) that it be ascertained what stockholders are insolvent, and that the defendants be adjudged liable to the amount of their stock for the debts against the bank, and be adjudged to pay into court, for the benefit of the creditors, the amounts for which they are held liable; and (4) for such other relief as may be equitable. The appealing def...