Santa Rosa National Bank v. Barnett

Citations

• 125 Cal. 407
• 58 P. 85
• 1899 Cal. LEXIS 872

Syllabus

<p>Corporations — Liability of Stockholders — Indebtedness to Bank—Over-Drafts—Note—Statute of Limitations.—A corporation is liable upon an implied promise to pay over-drafts to a bank when made; and its stockholders are liable on the indebtedness thus accruing to the bank, upon the daily balances against the corporation shown by the account. A note given in renewal or extension of the indebtedness of the corporation for overdrafts cannot operate to renew or extend the liability of the stockholders, or prevent the statute of limitations from running against it.</p> <p>Id.—General Deposits After Over-Drafts—Presumption of Payment-Account not Mutual.—General deposits made by the corporation in a bank to which it is indebted for over-drafts, of sums not greater than the balance of indebtedness, are presumed to be made as payments thereupon, and do not make the account mutual, open and current, within the statute of limitation's. The fact that the account started with a credit cannot alter the nature of the Indebtedness for over-drafts, nor render the account of such Indebtedness and of payments thereupon a mutual, open and current account.</p> <p>Id.—Limitations of Stockholders’ Liability — Constitutional Law.—Section 359 of the Code of Civil Procedure, limiting the liability of the stockholders of corporations, is not inconsistent with section 3 of article XII of the state constitution, imposing such liability, and was continued in force by section 1 of article XII of the constitution, continuing in force all laws not inconsistent therewith.</p> <p>Id.—Construction of Code.—There is no conflict between section 359 of the Code of Civil Procedure and section 309 thereof, relating to the liability of directors of corporations, or section 348 thereof, relative to actions against persons and corporations with whom money has been deposited.</p> <p>Id.—Amendment of Complaint — Discretion — Ruling Without Injury.—The refusal of the court to allow the complaint to be amended t