Brown v. Merrill
Brown v. Merrill
Opinion of the Court
This action is against the defendant, Southern California Motor Road Company, a corporation, on a promissory note of the company, executed March 4,1890, and against the other defendants as stockholders, for their respective proportions of the indebtedness on said note, under section 322 of the Civil Code. A several judgment was given against the defendant Merrill, the appellant, for three hundred and thirty-six dollars and thirty-five cents, as his portion of said indebtedness, according to the amount of stock he held in the corporation.
Appellant claims that respondent cannot have the benefit of the statute of this state, imposing liability on stockholders for the corporation’s debts, because he is a stockholder himself. This contention is based upon the authority of Bailey v. Bancker, 3 Hill, 188, 38 Am.
We see nothing in the other questions suggested by appellants’ brief demanding discussion.
The order and judgment are affirmed.
Van Fleet, J., and McFarland, J., concurred.
Reference
- Full Case Name
- JOSEPH BROWN v. SAMUEL MERRILL
- Cited By
- 7 cases
- Status
- Published
- Syllabus
- Corporations—Liability of Stockholders—Action by Stockholders.— Stockholders may have the benefit of the statute of this state imposing liability on stockholders for their respective proportions of the debts of the corporation, as against other stockholders in the same corporation. Id.—Several Liability of Stockholders.—Stockholders in this state are not jointly and severally liable for the debts of the corporation; but each stockholder has a several liability proportionate to the amount of his stock; and when he has paid his portion of any debt, or of all the debts of the corporation, he is freed from all liability, and has no cause of action against any other stockholder for money so paid.