Scott v. Windham

Citations

• 73 Miss. 76

Syllabus

<p>1. Stockholder. Unpaid subscription. Garnishment. Liable without call. Code 1892, <j 844.</p> <p>A stockholder in an insolvent corporation who has not paid his stock subscription is liable to the creditors of the corporation, and may be s^^ed therefor under $ 844, code of 1892, and the debt so due by him may be subjected by garnishment as well as in a direct proceeding-, and, although the subscription is, by its terms, payable on the call of the directors, and no such call has been in fact made.</p> <p>2. Same. Garnishnnent and direct sitit. Garnishment subordinate to judgment in suit brought prior thereto.</p> <p>Where a creditor of an insolvent corporation sues and recovers judg ment against a stockholder for the amount due on his stock subscription, and a garnishment is served on the stockholder at the instance of another creditor pending such suit, the judgment so recovered relates back to the institution of the suit, and has priority over the intervening garnishment.</p> <p>3. Same. Subsequent judgment. Execution restn'icted.</p> <p>A subsequent judgment against the stockholder in favor of one creditor of the corporation is erroneous if it fails to provide that no execution shall issue against him until satisfaction of an earlier judgment against him in favor of another creditor of the corporation, and then only for so much, if anything, as may remain due on the subscription.</p>