Rohr v. Stanton

254 P. 869, 78 Mont. 494, 1927 Mont. LEXIS 165
CourtMontana Supreme Court
DecidedMarch 15, 1927
DocketNo. 6,057.
StatusPublished
Cited by9 cases

This text of 254 P. 869 (Rohr v. Stanton) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rohr v. Stanton, 254 P. 869, 78 Mont. 494, 1927 Mont. LEXIS 165 (Mo. 1927).

Opinion

*498 MR. JUSTICE STARK

delivered the opinion of the" court.

Plaintiffs brought this action for the purpose of enforcing as against the individual defendants named their liability as stockholders of the defendant Stanton Trust & Savings Bank of Great Falls, Montana (hereafter inferred to as the bank), under the provisions of section 6036 of the Revised Codes of 1921, which, as amended by Chapter 9, page 24, of the Session Laws of 1923, reads: “The stockholders of every bank shall be severally and individually liable, equally and ratably, and not one for the other, for all contracts, debts, and engagements of such corporation, to the extent of the amount of their stock therein, at the par value thereof, in addition to the amount invested in such shares. * * *

The defendants jointly demurred to the plaintiffs’ amended complaint (hereafter referred to as the complaint), on the ground that the same did not state facts sufficient to constitute a cause of action. The demurrer was sustained. Plaintiffs having declined to further plead, judgment of dismissal was rendered and entered against them, from which they have appealed.

The complaint consists of separate statements of twelve separate causes of action. The allegations of each cause are identical with the exception of the name of the claimant and amount of indebtedness. Therefore we shall consider the allegations of the first cause of action alone, as they will sufficiently serve the purposes of this opinion.

The only question presented for consideration is whether the complaint states a cause of action. We are therefore called upon to determine whether the complaint would warrant a recovery by plaintiffs upon any admissible theory, for, if it would, it is sufficient to withstand an attack by general demurrer. (Anderson v. Border, 75 Mont. 516, 244 Pac. 494.) The order sustaining the demurrer was general and did not indicate the theory of the court’s ruling.

*499 In their brief filed in this court, defendants assail the sufficiency of the complaint upon three grounds: (a) That it does not sufficiently allege the insolvency of the defendant bank; (b) that it does not state facts sufficient to show that the action is prosecuted by plaintiffs for the benefit of all the creditors of the bank under the provisions of section 9083, Revised Codes of 1921; (c) that it does not state facts sufficient to bring the plaintiffs within the provisions of section 6036, supra. We shall consider these objections in the order named.

1. The complaint alleges, upon information and belief, that on or about the ninth day of July, 1923, the bank “was insolvent,” and on said day closed its doors, notified the banking department of the state of Montana of the fact of such insolvency and thereupon ceased to further engage in the banking business; that the total amount of its indebtedness to creditors is the sum of $600,000, which includes the claims of the plaintiffs; and that the assets of the bank at the present time, if converted into cash, would not bring in excess of $100,000.

It is contended by the defendants that the allegation that the bank “was insolvent” is the pleading of a conclusion of law, rather than the pleading of an ultimate fact. No authorities are cited to sustain this contention. The words “insolvent” and “insolvency” are of general use and obvious meaning. It appears to be generally held that insolvency may be alleged in terms without stating the probative facts. In Coal City etc. Co. v. Hazard Powder Co., 108 Ala. 218, 19 South. 302, there was a general allegation that the defendant was “insolvent.” In holding that to be a sufficient allegation of the fact of insolvency, the court said: “The fact of insolvency may, we think, be averred as it is in this bill. That is a well understood and recognized pecuniary condition of the party in reference. It may be a sort of conclusion from other facts, but if so it is also that kind of collective fact which may be averred and deposed to, and its statement involves and presents all the minor facts which make up the condition; and *500 the condition itself — the result of the facts which enter into it — is the fact in issue.” (See, also, 3 Bancroft’s Code Pleading, p. 2406; Gray v. Brunold, 140 Cal. 615, 74 Pac. 303; Grunsfeld Bros. v. Brownell, 12 N. M. 192, 70 Pac. 310; Lammert v. Stockings, 27 Ind. App. 619, 61 N. E. 945; 27 C. J., p. 771, sec. 676.)

Under these authorities, we hold the allegation of the complaint that the bank was “insolvent” sufficient to entitle plaintiffs to make proof of “the minor facts which make up the condition” of insolvency, as declared by section 6014a, subdivision 10, Chapter 90, Session Laws of 1923, page 240.

2. Does the complaint show that plaintiffs are entitled to maintain this action for themselves and on behalf of other creditors of the bank under the provisions of section 9083, Bevised Codes of 1921, which provides that when the question is one of common or general interest of many persons, or when the parties are numerous and it is impracticable to bring them all before the court, one or more may sue or defend for the benefit of all?

Where a suit is brought by or against a few persons in a representative capacity, that fact must be alleged in the pleading so as to present to the court the question whether sufficient parties are before the court properly to represent the rights of all. And the usual averment in a case of that kind is to the effect that the action is brought, not only for the benefit of the plaintiffs, but also for the benefit of all others similarly interested who may elect to come in and contribute to the costs and expenses of the suit. (15 Ency. Pl. & Pr. 631; Carey v. Brown, 58 Cal. 180.)

In the introductory paragraph of the complaint in this action, it is stated that the plaintiffs, creditors, respectively, of the bank, and as such having a common interest in enforcing the liability of the defendants for and on behalf of themselves and all other creditors of said bank, filed this complaint. And in paragraph 8 it is alleged that the creditors of the bank number more than 1,000; that their names are unknown to the plain *501 tiffs; and that it is impracticable to join them as parties to the action and bring them before the court within a reasonable time. And in the prayer of the complaint the' plaintiffs ask that they be permitted to maintain the action for and on behalf of all the creditors of the bank who will unite with them in the suit, and that an order of the court to that effect and for such purpose be forthwith made.

We think the complaint is sufficient on its face to entitle the plaintiffs to prosecute the action for themselves and on behalf of the other creditors of the bank.

3. It is finally urged that the facts stated in the complaint do not bring the plaintiffs within the provisions of section 6036, supra.

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Bluebook (online)
254 P. 869, 78 Mont. 494, 1927 Mont. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rohr-v-stanton-mont-1927.