Schroeder v. Edwards

184 S.W. 108, 267 Mo. 459, 1916 Mo. LEXIS 51
CourtSupreme Court of Missouri
DecidedMarch 31, 1916
StatusPublished
Cited by9 cases

This text of 184 S.W. 108 (Schroeder v. Edwards) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schroeder v. Edwards, 184 S.W. 108, 267 Mo. 459, 1916 Mo. LEXIS 51 (Mo. 1916).

Opinion

WILLIAMS, C.

This is a proceeding in equity by judgment claimants of the Chester Light, Water & lee Company, a corporation organized under the laws of the State' of Illinois, to recover from the defendants, residents of St. Louis, Missouri, as stockholders of said corporation, an amount alleged to be unpaid on the stock held by them in said corporation, and to have said'amount, due on said stock, applied to the payment [466]*466of the plaintiffs’ respective claims. Trial was had, in the circuit court of the city of St. Louis, resulting in a judgment and decree in favor of all of the plaintiffs, except plaintiff Neville, and judgment was rendered against defendant George L. Edwards for the sum of $10,226.26 and against defendant' Grant for the sum of $343.16, making a total judgment of $10,569.42, which was the total amount of judgments and claims held by the respective plaintiffs, less the claim of plaintiff Neville. Cross appeals were duly taken to this court, one appeal by plaintiff Neville and another appeal by the defendants Edwards and Grant.

The third amended petition, upon which the case was tried, alleged the incorporation of the Chester Light, "Water & Ice Company, under the laws of the State of Illinois, with an authorized capital of $35,000, divided into three hundred and fifty shares of the par value of $100 each, and that defendant George L. Edwards and one J. D. Gerlach were the original incorporators and promoters of said corporation and that all but five shares of said capital stock were originally subscribed for by A. D. Grant as a “straw man” and that said Grant paid no consideration to said corporation for said stock.

That immediately after said corporation was organized said Grant transferred 340 shares of said stock to defendant Edwards; that said Edwards, after-wards, transferred all but 147 shares of said stock to other parties, among them J. D. Gerlach, 146 shares; that an understanding existed between Edward's and 'Gerlach whereby each was to receive approximately one-half of the capital stock of said corporation; that said defendant Edwards became the owner of and holder of one hundred and forty-eight shares of stock in said corporation, and now owns and holds the same on the books of the corporation and that no consideration has ever been paid to the corporation, nor has the corporation ever received any value for the .one [467]*467hundred and forty-eight shares of stock so held by defendant Edwards.

The defendant Edwards, in 1901, indorsed and delivered to said J. D. Gerlach a certificate for' said one hundred and forty-eight shares of stock held by said Edwards, but that said transfer has never been recorded upon the books of the corporation, and that, at the time of the transfer, the corporation was insolvent and said Gerlach was insolvent and said transfer was made by said Edwards to avoid liability on said stock ; that under the common law of Illinois, the transferrer of stock remains liable thereon until the transfer is recorded on the books of the corporation and that such liability has not been removed by statute in said State; that there is now due and unpaid on said 148 shares of stock held by said Edwards the sum'of $14,800, for which said defendant is liable to these plaintiffs; that said defendant Grant owns five shares of the capital stock of said company, upon which there has been nothing paid, and that there is due on such shares the sum of five hundred dollars; that said defendants Grant and Edwards are the only solvent stockholders, holding unpaid stock, within the jurisdiction of said circuit court.

The petition further alleges that section 8, chapter 32, of the Revised Statutes of Illinois, provides as follows : '

“Every assignment or transfer of stocks on which there remains any portion unpaid shall be recorded in the office of the recorder of deeds of the county within which the principal office is located, and each stockholder shall be liable'for the debts of the corporation to the extent of the amount that may be unpaid upon the stock held by him to be collected in the manner herein provided. No assignor of stock shall be released from any such indebtedness by reason of any •assignment of his stock, but shall remain liable therefor jointly with the assignee until said stock be fully [468]*468paid. Whenever any action is brought to recover any indebtedness against the corporation, it shall be competent to proceed against any one or more stockholders at the same time to the extent of the balance unpaid by such stockholders upon the stock owned by them respectively, whether called in or not, as in cases of garnishment. Every assignee or transferee of stock shall be liable to the company for the amount unpaid thereon, to the extent and in the same manner as if he had been the original subscriber.”

The petition further alleges that plaintiff Herman Schroeder, on December 14, 1904, recovered judgment in the circuit court of Bandolph County, in the State of Illinois, against said Chester Light, Water & Ice Company, in the sum of $56.70, together with costs amounting to $4.85. That execution was duly issued upon said judgment, addressed to the sheriff of said Bandolph County, and was, by said sheriff, duly returned nulla bona. That said judgment still remains due and unpaid, and under the laws of the State of Illinois bears interest at the rate of five per cent per annum.

The judgments of the other respective plaintiffs are set forth in the same manner as the judgment of plaintiff Schroeder.

The prayer of the petition asks that the court enter a decree against said defendants, in proportion to the amount of their respective stock liability, an amount sufficient to satisfy the total claims and judgments of the respective plaintiffs.

Defendants filed a motion to strike out the third amended petition on the ground that it was a departure from the original cause of action pleaded. This motion was overruled and defendant saved an exception.

Defendants’ answer to said third amended petition alleged:

1st. That the court had no jurisdiction of the subject-matter.

[469]*4692nd. That the plaintiffs, or some of them, have no legal capacity to sue..

3rd. They admit that defendant Edwards, in 1901,' sold and transferred all of his stock in said company to said J. D. Gerlach for a consideration of five dollars per share and executed to said Gerlach a power of attorney to cause said shares of stock to be transferred on the books of the company to said Gerlach, and that, by reason thereof, the defendant Edwards ceased to be a shareholder in the company, and that if the company is indebted to the plaintiffs, as alleged in their amended petition, said indebtedness accrued long subsequent to the time when defendant Edwards ceased to •be a shareholder, as aforesaid.

4th.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Toler v. Coover
71 S.W.2d 1067 (Supreme Court of Missouri, 1934)
Nudelman v. Thimbles, Inc.
40 S.W.2d 475 (Missouri Court of Appeals, 1931)
Shout v. Gunite Concrete & Construction Co.
41 S.W.2d 629 (Missouri Court of Appeals, 1931)
Denny v. Guyton
40 S.W.2d 562 (Supreme Court of Missouri, 1931)
Daggs v. McDermott
34 S.W.2d 46 (Supreme Court of Missouri, 1931)
Groo v. Sanderson
235 S.W. 177 (Missouri Court of Appeals, 1921)
Hollipeter-Shonyo & Co. v. Maxwell
224 S.W. 113 (Missouri Court of Appeals, 1920)
Crecelius v. Chicago, Milwaukee & St. Paul Railway Co.
223 S.W. 413 (Supreme Court of Missouri, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
184 S.W. 108, 267 Mo. 459, 1916 Mo. LEXIS 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schroeder-v-edwards-mo-1916.