Queenan v. Palmer

Citations

• 117 Ill. 619
• 7 N.E. 613

Syllabus

<p>1. Chancery jurisdiction—distribution of common fund. Where a common fund exists, upon which numerous persons have claims, which may or may not be sufficient to satisfy all demands upon it, a court of equity will have jurisdiction to ascertain the amount of such fund, and its sufficiency, and distribute or apportion the same among those it may find entitled to share therein.</p> <p>2. Same—to enforce liability of stockholders of a bank corporation. Where the charter of a banking corporation makes its stockholders individually liable to the amount of the stock held by them, .respectively, to depositors and other creditors of the bank, for any losses they may sustain, such liability is a common fund for the security of creditors, and a court of equity, aside from the ground of discovery, will have jurisdiction of a bill by a creditor, for himself and others, to enforce such liability, and control the fund thus raised for their benefit, and distribute the same ratably among them, the remedy at law in such case being inadequate without the bringing of a multiplicity of suits.</p> <p>3. Stockholders—individual liability—whether penal in its nature. A bank charter provided that the stockholders should “be responsible, in their individual property, in an amount equal to the amount of stock held by them, respectively, to make good losses to depositors or others:” Held, that the indivichml liability was not in the nature of a penalty, and therefore enforceable only in a court of law, but was primary, and subject to the demands of depositors and other creditors, equally with the assets of the bank.</p> <p>4. Same—statute making stockholders liable, construed. A charter or statute making the stockholders of a corporation individually responsible in an amount equal to their stock, “to make good losses to depositors or'others,” will be construed to make the stockholders liable to all creditors who may suffer from the default or failure of the corporation to pay its indebtedne