Chesbrough v. Woodworth

Citations

• 195 F. 875
• 116 C.C.A. 465
• 1912 U.S. App. LEXIS 1437

Syllabus

<p>1. Banks and Banking (§ 253*)—National Banks—Liability of Officers and Directors.</p> <p>The making and publishing by a national bank of the reports required by statute are not merely for the information of the comptroller, but are to guide so much of the public as may have occasion to act thereon, and one who buys from another stock in the bank in reliance upon a false report of its condition, and suffers damage thereby has a right of action against any officer or director who, knowing its falsity, authorizes such report, under Rev. St § 5239 (U. S. Comp. St. 1901, p. 3515), which makes them individually liable for damages sustained by the association, its stockholders, ‘'or any other person.”</p> <p>[Ed. Note.—For other cases, see Banks and Banking, Cent. Dig. §§ 944-919; Dec. Dig. § 253.*]</p> <p>2. Banks and Banking (§ 254*)—National Banks—Action for Damages Against Officer or Director.</p> <p>The damages in such a case are personal with plaintiff who sues in his own individual', right, and not in that of the association.</p> <p>[Ed. Note.—For other cases, see Banks and Banking, Cent. Dig. §§ 950-957; Dec. Dig. § 254.*]</p> <p>3. Banks and Banking (§ 254*)—National Banks—Action Against Directors—Issues and Proof.</p> <p>Such an action against directors involves no direct issue of negligence, the sole xirtmary issue being whether a defendant caused or permitted to be made a statement of the bank’s condition on which plaintiff relied to his injury, and which statement defendant knew was materially false. The liability of the directors is several, and plaintiff may sue one or more, but must make out a sufficient caso against each one to authorize a recovery against him, and, in general, the detailed history of the entire transaction and of each defendant's connection with the same is admissible.</p> <p>[Ed. Note.—For other cases, see Banks and Banking, Cent. Dig. §§ 950-957; Dec. Dig. § 254.*]</p> <p>4. Banks and Banking (§ 253*)—National Banks—Action Against Di