Hardin v. White Swan Mining & Milling Co.

Citations

• 26 Wash. 583
• 67 P. 236

Syllabus

<p>GARNISHMENT-CORPORATIONS — SOTEICIENCY OR EVIDENCE.</p> <p>Where the evidence in a garnishment proceeding against a mining corporation showed that it was indebted to the judgment debtor in the sum of $120, that the judgment debtor was one of the three incorporators of the corporation and as such was entitled to a large block of stock, which, by mutual agreement, had not been issued, but was pooled with the holdings of the other incorporators, that a verbal agreement had been made by the judgment debtor with another incorporator to allow the latter to hold his stock and retain a lien thereon until an indebtedness due from the former had been paid, but that this agreement was not known by the secretary of the corporation or by any one until after the institution of the garnishment proceeding, it is sufficient to warrant the denial of motions for non-suit and for new trial.</p> <p>SAME-LIABILITY OE STOCK EOR DEBTS OE STOCKHOLDER.</p> <p>Under Bal. Code, §§ 5398, 5406-5408, recognizing the right of a judgment creditor to garnishee a corporation in which the judgment debtor is the owner of shares and providing how such shares may be sold and the effect of such sale, such shares may be sold on execution to the extent of the judgment debtor’s interest, although held either under a pledge or a pooling agreement.</p>