American File Co. v. Garrett

Citations

• 110 U.S. 288
• 4 S. Ct. 90
• 28 L. Ed. 149
• 1884 U.S. LEXIS 1692

Syllabus

<p>Assignee in Bankruptcy — Corporation.</p> <p>A, residing in Maryland, and a stockholder in a manufacturing corporation in Rhode Island, pledged with B, also residing in Maryland, as security for a debt due from A to B, bonds of the company secured by mortgage of all its property. The company became embarrassed and unable to pay its debts, and its stockholders became individually liable to its creditors. A became bankrupt, and B agreed with the assignee to receive the bonds and a sum of money in payment of A’s debt, and to indemnify the assignee against. loss or damage as holder of the stock. B then instituted proceedings to enforce the individual liability of other stockholders : Held, That, the agreement with the assignee was not an agreement to save A harmless against liability as stockholder ; that neither the assignee in bankruptcy nor the bankrupt’s property in his hands was subject to the liability which attached'to the stock, and that B assumed no liability which could be set up by a stockholder as a defence against his individual liability to B.</p>