Myers v. Sierra Valley Stock & Agricultural Ass'n

Citations

• 122 Cal. 669
• 55 P. 689
• 1898 Cal. LEXIS 657

Syllabus

<p>Corporations—Payment of Note by Sureties—Contribution Among Stockholders — Statutory Action.—An action by stockholders-against other stockholders of the corporation, to enforce their liability, to contribute to the payment of a note upon which, the plaintiffs were sureties, and. which they have paid, does not arise out of the relation of surety, but is a statutory action to enforce the liability to them of the stockholders as principal debtors.</p> <p>Id.—Subrogation—Equity—Action of Assumpsit.—The holder of the paid note had no right or remedy which required the interposition of equity to invest tne sureties therewith, or to entitle them to be subrogated thereto; and equity has no jurisdiction of an action by them to enforce the liability of the other stockholders to them; but the sureties, upon payment of the note, had their action in assumpsit, as sureties, directly against the stockholders as principals.</p> <p>Id.—Jurisdiction of Superior Court.—The superior court has no jurisdiction of such an action, where the ’amount recoverable from each stockholder .is less than three hundred dollars.</p> <p>Id.—Affidavit Denying Note—Confession and Avoidance.—Conceding that an affidavit of plaintiffs denying the genuineness and due execution of a note pleaded in an answer came too late, the plaintiffs nevertheless had the right to controvert the note by showing any other matters in confession or avoidance thereof.</p> <p>Id.—Want of Consideration—Absence of Authority.—An admission of the genuineness of a note not purporting to have been made by the corporation does not involve an admission that it was a. corporation note, and it may be shown that it was not authorized oy the directors of the corporation, and was without consideration.</p>