Skinner v. Schwab

Headnote

Banks and banking — action by state superintendent of banks to enf orce statutory liability of stockholders of insolvent trust company in liquidation.

Skinner v. Schwab, 188 App. Div. 469 , affirmed.

Appeal, by permission, from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered June 13,1919, unanimously affirming a judgment in favor of plaintiff entered upon a decision of the court on trial at Special Term in an action brought by the state superintendent of banks to enforce the statutory liability of the stockholders of an insolvent trust company in liquidation. Appellant contended that, the trial court and Appellate Division erred in holding that this appellant, as a stockholder of the Carnegie Trust Company, was subject to the double liability imposed upon stockholders of trust companies incorporated under the Banking Law by the provisions of paragraph 196 of the Banking Law of 1909, although there was nothing in that section, nothing in the other sections of the Banking Law and nothing in the special act which purported to impose any such obligation, and in holding that appellant by paying into the profit and loss, or surplus account, $100 with each $100 par value of stock subscribed by him did not thereby acquit himself from any possible liability under any

construction of the special act of incorporation or of the Banking Law.