Allen v. Ryan

Headnote

Corporations -— stocks and stockholders ■ — • action by trustee of bankrupt corporation to recover unpaid subscription for stock.

Allen v. Ryan, 219 App. Div. 634 , affirmed.

Appeal from a judgment, entered March 8, 1927, upon an order of the Appellate Division of the Supreme Court in the fourth judicial department, reversing a judgment in favor of defendant entered upon a dismissal of the complaint by the court at a Trial Term without a jury and directing judgment in favor of plaintiff. The action was to recover the balance of an unpaid subscription for stock in the American Railway Brotherhood Association, Inc. Defendant had subscribed for twenty shares and paid ten per cent of the par value of the stock. He contended that there could be no recovery in this action because the corporation was bankrupt and a stock certificate could not be issued and if issued it would be worthless.