Conway v. Owensboro Savings Bank & Trust Co.

Citations

• 165 F. 822
• 1908 U.S. App. LEXIS 5424

Syllabus

<p>1. Banks and Banking (§ 293*) — Insolvency—Stockholders—Double Liability.</p> <p>The double liability of stockholders of a bank created by ICy. St. 1903, § 647, constitutes a trust fund, so that creditors of an insolvent savings bank may sue on behalf of all the creditors who may become parties to have the trust administered in equity without first having obtained a judgment at law on their demands.</p> <p>[Ed. Note. — For other cases, see Banks and Banking. Cent Dig. § 1135; Dee. Dig. § 293.*]</p> <p>2. Courts (§ 328*)— Federal Courts -Jurisuhtional Amount.</p> <p>Whore, in a suit to enforce a double liability of stockholders of an insolvent bank impo'wed by Ivy. St. 1002. § 517. tlie debts of complainants, who were citizens of Indiana, against the bank, a citizen of Kentucky, exceeded $2,000, exclusive of interest and costs, and the trust fund to bo collected from 1he stockholders was nominally $200,000, tlie amount in controversy was sufficient to sustain federal jurisdiction.</p> <p>FEd. Note. — For other cases, see Courts, Cent. Dig. § 891; Dec. Dig. § 328.*</p> <p>Jurisdiction of Circuit Courts as determined by amount in controversy, see notes to Auer v. Lombard, 19 C. O. A. 75; Tounent-Slribling Shoe Co. v. lloper, 36 C. C. A. 459.]</p> <p>3. Banks and Banking (§ 49*) -Insolvency — IAatolity of Stockholders - Enforcement.</p> <p>The double liability of stockholders of an insolvent bank created by Ky. St. 1903, § 517, may be enforced in a suit in equity by one creditor for the benefit of all, or by separate suits against each stockholder by a receiver.</p> <p>TEd. Noie. — Ifor other cases, see Banks and Banking, Gent. Dig. | 76; Dec. Dig. § 49.*]</p> <p>é. Juey (§ 13*) — Right to Jury Trial.</p> <p>Where, in a suit to enforce the double liability of stockholders of an insolvent bank created by Ky. St. 1908, § 547, issues of fact are raised by the defendant’s pleading, defendant has a right to a jury trial of such issues, whether the action be in equity or a