Danenhower v. Birch
Danenhower v. Birch
Opinion of the Court
The opinion of the court was delivered by
These two cases wore argued together and involve the same legal question, namely, was judgment rightly ordered for the plaintiff?
The defendants respectively • answered and the plaintiff moved, before a justice of the Supreme Court, to strike out the answers and for final judgments upon the ground, among others, that they were sham and frivolous and no defence to the action.
The justice struck out the answers and entered final judgments, and we think rightly.
Both answers admitted the matters of fact in the respective complaints, except that each defendant denied (1) that he was the owner of the stock, and (2) that there is $8.03 due on the stock per share: and each averred (3) that he was a bona fide holder of the stock for value, and (4) that he had taken an appeal.
In the present case the motions to strike out the answers and for judgment final were respectively supported by a proper affidavit verifying the cause of action, stating the amount claimed, and that there was no defence. Neither defendant filed any affidavit or submitted any proofs in reply.
In view of the uncontradicted affidavit of the plaintiff, it is clear that each defendant was the owner of the .stock on account of which he was assessed, that neither defendant was a bona fide holder of the stock for value, and that neither defendant had taken an appeal from the order of the District Court affirming the assessment.
This leaves for consideration only the denial in the answers that there was $8.03 due on the stock per share. But as to that the defendants were concluded by the finding of the referee and its affirmance in the District Court. In a suit such as this by a trustee of a bankrupt corporation in a state court to recover an assessment for the amount remaining unpaid upon a stock subscription, in order to pay the debts of the corporation, the assessment made by the referee after hearing the stockholders, and affirmed by the United States District Court, is conclusive upon the stockholders as to the fact that the assessment is necessary, as to the amount of money rapxired to be raised by the assessment, and as to the pro rata, of each share of stock upon which the assessment is made. Gilson v. Appleby, 79 N. J. Eq. 590; Swing v. Con
The respective judgments brought up for review will be affirmed, with costs.
For affirmance — The Chancellor, Ghtee Justice, Stvayze, Teen chard, Parker, Bergen, Min turn, Kalis ch, Black, Heppeni-ieimer, Williams, Gardner, Ackerson, Van Buskirk, JJ. 14.
For reversal — None.
Reference
- Full Case Name
- JOHN C. DANENHOWER, TRUSTEE IN BANKRUPTCY OF CRAMER & ROGERS GROCERY COMPANY v. JAMES H. BIRCH, Jr., APPELLANT JOHN C. DANENHOWER, TRUSTEE IN BANKRUPTCY OF CRAMER & ROGERS GROCERY COMPANY v. JOHN W. STONE
- Status
- Published