Lockport Co-operative Dairy Ass'n v. Buchner

Majority

p. 585

Lockport Co-operative Dairy Association, Inc., Respondent, v. William Buchner, Appellant.

Headnote

Associations — assessments — action by co-operative association to recover assessment levied on members.

Lockport Co-operative Dairy Assro., Inc., v. Buchner, 217 App. Div. 784 , affirmed.

(Argued January 19, 1927;

decided February 23, 1927.)

Appeal from á judgment of the Appellate Division of the Supreme Court in the first - judicial department, entered July 27, 1926, affirming a judgment in favor of plaintiff entered upon a verdict. The action was brought by a. co-operative dairy association formed under article

p. 586

13-A of the Membership Corporations Law to recover the amount of a per capita assessment levied upon its members by resolution of its board of directors under article 10 of its by-laws which read as follows: “ Emergency capital: If emergency capital is necessary the directors, by a majority vote, may call for additional funds from the members and issue therefor additional certificates of indebtedness.”

. Defendant contended that the assessment and by-law under which it was alleged to have been levied were invalid; that the plaintiff had no authority to adopt the by-laws under which this assessment was levied; that the by-law was unreasonable and indefinite, and was in conflict with the certificate of incorporation and other provisions of the by-laws.

Bernard Swartz for appellant.

William W. Storrs for respondent.

Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews and Kellogg, JJ. Dissenting: Lehman, J.