Kunz v. National Valve Co.

Citations

• 19 Ohio C.C. Dec. 519
• 9 Ohio C.C. (n.s.) 593
• 1907 Ohio Misc. LEXIS 233

Syllabus

<p>APPEALS — CORPORATIONS—STOCKHOLDER’S LIABILITY. «,</p> <p>Haynes, Parker and Wildman, JJ.</p> <p>1. Action fob Unpaid Balance of Corpobation Stock Appealable.</p> <p>An action by the creditors of a corporation to ascertain the amount of alleged unpaid balances of stock subscriptions, on which subscriptions payment had been made only with property at an alleged overvaluation, and to compel payment of such balances when ascertained is appealable. The right of appeal is not affected by the substitution of a trustee in bankruptcy for such creditors, and to subject the same to the payment of debts of the corporation.</p> <p>2. Good-Faith Rule Applicable to Issue of Cobpobation Stock in Payment fob Property.</p> <p>The holder of corporation stock, for which property was accepted in payment at an overvaluation of such property, is not liable to creditors of the corporation for the difference as an unpaid -balance, where the transaction was made in good faith, and the overvaluation was not so gross as to be constructively fraudulent.</p> <p>3. Burden of Proof.</p> <p>The burden of proof rests on a plaintiff asserting that property has been taken by a corporation in payment for stock, at a fraudulent overvaluation, to establish such fact.</p> <p>[Syllabus approved by the court.]</p>