Merritt v. Goodrich — 51 N.Y. St. Rep. 124

Majority

p. 124

George Merritt, Resp’t, v. Thomas F. Goodrich, App’lt.

(New York Common Pleas, General Term,

Filed February 6, 1893.)

Headnote

Corporations — Liability op director por debts op the company.

The liability of a director of the American Loan & Trust Co., imposed by its charter, for all debts of the corporation incurred while he continued to be a director, is enforceable in an action by the creditor without joining other creditors or directors; and the prior recovery of judgment, against the company is not essential to its maintenance.

Appeal from a judgment of the general term of the city court: of New York, affirming a judgment for plaintiff entered upon a verdict directed by the trial court.

Action by the assignee of a creditor of the American Loan &:

p. 125

Trust Company, to enforce defendant’s liability as a director under a provision of the charter of the company that “ every director shall be personally liable for debts incurred by the corporation during his administration, to an amount not exceeding five thousand dollars.’’

Marshall P. Stafford, for resp’t; Payson Merrill, for app’lt.

The questions involved on this appeal do not, in any respect, differ from those determined by us in State Barde of Bock Valley v. Andrews, the decision wherein is herewith handed down. In that case our conclusions were that the defendant’s liability to a creditor of the American Loan & Trust Company, imposed by its charter, for all debts of the corporation incurred while he continued to be a director, is enforceable in an action at law instituted by the creditor without joining other creditors or directors; and that the prior recovery of judgment against the company, and return of execution issued thereunder, were not essential to the maintenance of the action.

The judgment of the general term of the court below should be affirmed, with costs.

Bookstaver and Pryor, JJ., concur.