Wigton v. Bosle

102 F. 70, 1900 U.S. App. LEXIS 5204
CourtU.S. Circuit Court for the District of Eastern Pennsylvania
DecidedMay 28, 1900
DocketNo. 36
StatusPublished
Cited by2 cases

This text of 102 F. 70 (Wigton v. Bosle) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wigton v. Bosle, 102 F. 70, 1900 U.S. App. LEXIS 5204 (circtedpa 1900).

Opinion

DALLAS, Circuit Judge.

This action was brought to enforce a liability to which the defendant is alleged to be subject as a stockholder of the Iowa Savings Bank, by virtue of the laws of the state of fowa. At the outset of the trial the counsel for the plaintiff stated:

“I understand that the court takes judicial notice in such cases as this of the statutes of the state, and I therefore want to call attention to the laws of the state of Iowa (Jliller’s Oode, July 4, 1888, p. 600),” etc.

The learned counsel were unquestionably right in understanding that the courts of the United States take judicial notice of the public laws of each of the several states, when any such law is properly applicable to a case on trial in a federal court; but they were also right in supposing that the trial judge was in fact unacquainted with the statute’s of Iowa, and that therefore the burden was upon the plaintiff to supply the needful information. I-Ie, however, presented only the one’ statutory provision above mentioned, and as that provision is, as is now conceded, inapplicable to this action, the judgment, of nonsuit was, as the case then appeared, clearly right. Yet I am asked to strike off that judgment, for the reason that there is another Iowa, statute which it is contended would, if it had been brought to the attention of the court in due season, have precluded its entry; but I have not been convinced that this additional statute should be considered upon this motion. The action of the court was not founded upon a refusal to take judicial notice of anything which it should have noticed, but upon its compliance with the plaintiff’s request that it should notice a certain particular statute, which he asserted to be the pertinent one; and consequently the case, from beginning to end, was tried upon that supposition. Under these circumstances, the plaintiff, if the case had gone to the jury, would not have been eutilled to have a verdict against him set aside, and, a fortiori, he is not entitled to be relieved from the requirement, which a nonsuit imposes, of paying the costs of this action, and then bringing a new one, if he shall be so advised. Steph. Dig. Ev. art. 59; Tayl. Ev. § 21, and cases there cited. But, even if the statutory provision which is now relied on had been produced on the trial, I am of opinion that the entry of the nonsuit would have been proper. That provision is as follows:

[72]*72“Shareholders In banks organized under the provisions of this act shall be individually and severally liable to the creditors of the corporation of which they are shareholders over and above the amount of stock by them held, to an amount equal to their respective shares so held, for all its liabilities accruing while, they remain shareholders, and no transfer of stock shall affect such liability for the period of six months thereafter, and should any bank become insolvent and its assets be found insufficient to pay its debts and liabilities, its shareholders may, to that extent, be compelled to pay such deficiency, in proportion to the amount of stock owned by each.”

I assume, without deciding, that the effect of this provision, as a whole, is to make the liability which it creates an asset of the corporation. But the plaintiff’s declaration is inconsistent with this assumption. It alleges that the laws of the state of Iowa provide “that shareholders are individually and severally liable to the creditors of the corporation,” and, if this were really the effect of this statute, the receiver could not, aside from any other objection, maintain this action. Mechanics’ Sav. Bank v. Fidelity Insurance Trust & Safe-Deposit Co. (C. C.) 87 Fed. 113; Id., 38 C. C. A. 193, 97 Fed. 297; Whitman v. Bank, 20 Sup. Ct. 477, Adv. S. U. S. 477, 44 L. Ed. -. Hence there seems to be a variance between the pleading and the proof, which cannot but be material, since it . is only by assuming that the proof establishes a right not declared upon that any cause of action can be said to have been shown.

There is, however, more substantial ground for upholding this nonsuit. The plaintiff bases his right to sue as receiver upon his allegation that a court of the state of Iowa appointed him receiver of the Iowa Savings Bank, of that state, “inter alia, to collect and receive all its assets,” and thereafter ordered and made an assessment upon the par value of the stock of each shareholder, and authorized and directed him (the receiver) “to proceed at once to use all legal means to collect the assessment by suit or otherwise.” The gravamen of the complaint is that “the defendant has failed and refused to pay the amount of the assessment,” and the first question is, was he bound by the order which made the assessment and fixed its amount? The liability imposed by the statute is conditional upon the bank having become insolvent, and its having been found that its assets are insufficient to pay its debts and liabilities; and the liability is not for any specified sum, but is for “such deficiency,” whatever it may be, and attaches to the several shareholders in proportion to the amount of stock owned by each. Manifestly, therefore, before a common-law action can be maintained for recovery of a specific sum, there must have been some legitimate ascertainment of the insolvency of the bank, of the insufficiency of its assets to pay its debts and liabilities, and also of each shareholder’s proportion of such deficiency. In my opinion, none of these matters has been ascertained or determined in any manner which can affect this defendant. The assessment order which is relied upon was made in a suit to which he was not a party, and in which he did not appear, nor could have been required to appear. It was made upon the report of a receiver, who was appointed in the exercise of the general powers of the Iowa court and not in pursuance of any statute of that state vesting in him the legal title to the corporate assets. If such [73]*73had been the ease, or if the proceeding had been one for the enforcement of unpaid subscriptions to stock, a different question might have been presented; but to hold any man bound by an order such as is now claimed to be conclusive upon this defendant, although he never had his day in court to object to it, would be, as it seems to me, to disregard a plain and fundamental principle of justice. Elkhart Nat. Bank v. Northwestern Guaranty Loan Co., 30 C. C. A. 632, 87 Fed. 252.

Furthermore, I am of opinion that this receiver has no right to maintain the present action in this jurisdiction. In Hale v. Hardon (C. C.) 89 Fed. 283; Id., 37 C. C. A. 240, 95 Fed. 747, — the cases of Booth v. Clark, 17 How. 322, 15 L. Ed. 164, and Relfe v. Rundle, 103 U. S. 222, 26 L. Ed. 337, and others, were very carefully reviewed. In the circuit court Judge Putnam decided against the right of such a receiver to sue. In the court of appeals tlie majority of the court (Judge Colt dissenting) held to the contrary. The result was that Judge Putnam’s judgment was reversed, but, under the circumstances, I have thought it proper to give the same consideration to the opinion of Judge Putnam and of Judge Colt as to that of Judge Aldrich, upon which the judgment of the court of appeals was founded; and I am constrained to say that, both upon reason and authority, the opinion which was delivered in the circuit court and the dissenting opinion in the court of appeals accord with my own judgment, and I therefore follow them.

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Bluebook (online)
102 F. 70, 1900 U.S. App. LEXIS 5204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wigton-v-bosle-circtedpa-1900.