State v. Merchants Bank
State v. Merchants Bank
Opinion of the Court
This is an action, under G-. S. 1894, c. 76, to wind up an insolvent corporation. A supplemental complaint was filed to enforce the
It appears by the findings that the amount of indebtedness is much more than such 60 per cent, will pay, but nevertheless the judgment provides that the amount so adjudged against each stockholder shall be-satisfied on payment of the amount which the agreement stipulates he may pay in satisfaction of the same as aforesaid. It is further adjudged that, after paying the expenses of administration out of the sums so paid in, the balance shall be distributed ratably among all of the 258 creditors.
While the agreement is binding on all the creditors who entered into it, it is not binding on this appellant, who is not a party to it. As to her the judgment is erroneous.
Some of the creditors gave a bond to indemnify the stockholder defendants against the claim of this appellant.
We will not prescribe the modification to be made to the judgment, but will remand the case to the court below, with directions to modify the judgment in accordance with this opinion, after notice to the parties. It is so ordered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.