Kennedy v. California Savings Bank

Citations

• 97 Cal. 93
• 31 P. 846

Syllabus

<p>Corporations — Action against Stockholder — Attachment — Contract. — An action against a stockholder,of a corporation to recover his proportion of a debt of the corporation is an action upon a contract, within the meaning of section 537 of the Code of Civil Procedure, relative to attachment.</p> <p>Id. — Stockholder’s Liability—Construction or Constitution—Agency of Corporation for Stockholders. — The legal effect of the condition prescribed by section 3 of article.XII. of the constitution of this state, regulating the individual liability of stockholders for debts contracted and liabilities incurred by the corporation, is, that a corporation when created becomes the agent of its stockholders to make such contracts and incur such liabilities as are authorized by law and its articles of incorporation, and the contracts which it thus makes hind the stockholders to the extent named.</p> <p>Id.—Joint Action — Writ op Attachment — Amount in Excess of Demand against Stockholder — Discharge of Writ. —Where the complaint demands different amounts from the several stockholders of a corporation, who are jointly sued as co-defendants with the corporation, a writ of attachment issued thereon must conform to the complaint and direct the attachment of so much property of the respective defendants as will secure the amount alleged to be due from each. If the writ is issued against the property of any defendant for an amount exceeding the demand made against him in the complaint, the writ mast be discharged as to such defendant, on his motion, even though no more of his property is attached than is sufficient to satisfy the demand against him.</p>