Dukes v. Harrison & Reidy

270 Ill. App. 372, 1933 Ill. App. LEXIS 531
CourtAppellate Court of Illinois
DecidedApril 11, 1933
DocketGen. No. 36,190
StatusPublished
Cited by16 cases

This text of 270 Ill. App. 372 (Dukes v. Harrison & Reidy) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dukes v. Harrison & Reidy, 270 Ill. App. 372, 1933 Ill. App. LEXIS 531 (Ill. Ct. App. 1933).

Opinion

Mr. Justice Sullivan

delivered the opinion of the court.

September 14, 1931, the complainant filed her bill in the superior court of Cook county, A Aging that she recovered a judgment against Harrison & Beidy, a corporation, April 30, 1927, in the superior court of Cook county for the sum of $1,500; that an execution was issued and delivered to the sheriff and return thereon was made by the sheriff “no part satisfied”; that the judgment was in full force and effect; that more than 10 days had elapsed since the return of the execution and that Harrison & Beidy, a corporation, had ceased doing business, leaving the judgment unpaid. The bill alleged further that Harrison & Beidy, a corporation, was organized under the laws of Illinois, May 27, 1919, and that the statement of incorporation set forth that Thomas A. Harrison had subscribed for 36 shares of the capital stock of the corporation and had paid $2,500 of his subscription of $3,600 and that Edward J. Beidy had subscribed for 38 shares of the capital stock and had paid $2,500 of his subscription of $3,800 but that in fact neither Thomas A. Harrison nor Edward J. Reidy had paid into the treasury of the corporation the amounts set forth in the certificate of incorporation as having been paid by them in cash.

Harrison & Reidy, a corporation, Thomas A. Harrison, Edward J. Reidy and Frank D. Collins were named defendants and a decree was prayed for requiring Thomas A. Harrison and Edward J. Reidy to pay each his pro rata share of the judgment to the extent of the unpaid portion of the stock of the corporation subscribed for by each of them under the terms of par. 53 of chapter 32 of Cahill’s Revised Statutes of Illinois, which provides as follows:

“After an adjudication of bankruptcy, or after an execution has been so returned, or has remained unsatisfied for more than ten days, after a demand made, or after dissolution or cessation of business leaving-debts unpaid, any creditor may bring suit in equity, in any court having general jurisdiction in the county in which the principal office of the corporation is located on behalf of himself and of all other creditors of the corporation, against all persons who are liable.in any way for the debts of the corporation, by joining the corporation in such suit. After exhausting the assets of such corporation, each stockholder may be required to pay his pro rata share of such debts and liabilities to the extent of the unpaid portion of the stock. . . .”

Harrison & Reidy, a corporation, Edward J. Reidy and Thomas A. Harrison were served with summons and the bill was later dismissed as to Frank D. Collins.

A special appearance for the purpose of contesting the jurisdiction of the court was filed by Harrison & Reidy, a corporation, together with a written motion to quash the service of the summons and to dismiss the corporation as a defendant. An affidavit was filed by Edward J. Reidy in support of this motion which alleged that a decree of dissolution of the Harrison & Eeidy corporation had been entered by the superior . court of Cook county, September 17, 1928, and a certificate of dissolution was filed in the office of the Secretary of State of the State of Illinois, and quoted par. 14, chapter 32 of Cahill’s Illinois Eevised Statutes, which provides:

“All corporations organized under the laws of this State, whose powers may have expired by limitation or otherwise, shall continue their corporate capacity for two years for the purpose only of collecting debts due such corporation and selling and conveying the property and effects thereof. Such corporations shall use their respective names for such purposes and shall be capable of prosecuting and' defending all suits at law or in equity.”

The affidavit also set out par. 79, chapter 32 of Cahill’s Eevised Statutes of Illinois, which provides:

“The dissolution, for any cause whatever, of any corporation, shall not take away or impair any remedy given against such corporations, its officers, or stock- ° holders, for any liabilities incurred previous to its dissolution, if suit therefore is brought and service of process had within two years after such dissolution. ’ ’

The affidavit in support of the motion to quash the service of summons as to Harrison & Eeidy, a corporation, also alleged that the complainant had filed a previous bill of complaint on January 28, 1930, in the circuit court of Cook county against the same defendants and seeking the same relief as was sought in the instant bill and that that suit was dismissed September 15, 1930, for want of prosecution.

The court denied the motion to quash as to the defendant corporation, and Harrison & Eeidy, a corporation, elected to stand upon its special appearance and motion to quash the service of summons. Answers were filed by the defendants, Thomas A. Harrison and Edward J. Eeidy, and the cause proceeded to trial.

April 23, 1932, a decree was entered, the material findings of which were:

“The defendant, Harrison & Reidy, a corporation,having failed to file its plea, answer, or demurrer to said bill of complaint as heretofore ordered by the Court, it is ordered that the said bill of complaint be, and it is hereby, taken as confessed by said defendant.

“That neither of the defendants, Edward J. Reidy nor Thomas A. Harrison, paid the amount agreed by them to be paid upon their respective subscriptions to the capital stock of said corporation and that each of them owe more than the sum of Fifteen Hundred Dollars ($1,500.00) upon their respective subscriptions to said capital stock.

“Now, Therefore, in consideration thereof, It Is Hereby Ordered, Adjudged and Decreed, that the defendants, Edward J. Reidy and Thomas A. Harrison each pay his pro-rata share of the said judgment of the complainant, Kate M. Dukes, to the extent of the unpaid portion of the stock of said corporation so □subscribed for by each of them; that is to say, that said defendants, Edward J. Reidy and Thomas A. Harrison pay to the complainant, Kate M. Dukes, the amount of her said judgment, Fifteen Hundred Dollars ($1,500.00), and that the Clerk issue an execution in favor of said- complainant as at common law, directed to the Sheriff of the County of Cook, commanding him that of the goods, chattels, lands and tenements of said defendants, Edward J. Reidy and Thomas A. Harrison, in his County, he shall cause to be made the said sum of Fifteen Hundred Dollars ($1,500.00) and the complainant’s costs,of this proceeding, to be taxed by the Clerk of this Court and that said execution or fieri facias be in the form usually issued by the Clerk of this Court in common law proceedings.”

The defendant corporation contends that except for section 14 of the Corporation Act, Cahill’s St. ch. 32, ti 14, the decree of September 17, 1928, of the superior court dissolving the corporation, would have effectually terminated the existence of the corporation for all purposes and that, therefore, after the expiration of the two-year period provided by section 14, the corporation was legally extinct and could not sue or be sued and no person could legally be served with or accept service of summons directed to the corporation.

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Bluebook (online)
270 Ill. App. 372, 1933 Ill. App. LEXIS 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dukes-v-harrison-reidy-illappct-1933.