Sharp v. Levan

Citations

• 236 Pa. 374
• 84 A. 915
• 1912 Pa. LEXIS 761

Syllabus

<p>Contract — Assessment on bank stock — Promise to pay another’s assessment — Statute of frauds — -Damages — Failure to show damages for breach of contract.</p> <p>1. In an action by one holder of shares in the capital stock of a national bank against another shareholder, upon an alleged oral promise to pay an assessment and contribute to a voluntary fund required by the comptroller of the currency in order that the bank, which had been compelled to close its doors, might resume business, it appeared that the defendant had promised the plaintiff that if the latter would sign the paper agreeing to pay the assessment on the stock and contribute to the voluntary fund, he would make his stock good, and to take care of him. The plaintiff was bound to pay the assessment to make the stock good, and after he signed the agreement was bound to pay the voluntary contribution to the bank. The defendant paid the voluntary contribution due by the plaintiff, but did not pay the assessment due by him, and thereafter the stock was sold as required by the National Bank Act because of refusal to pay the assessment. Suit was then brought by the plaintiff against the defendant, to recover the aggregate amount of the assessment and voluntary contribution. Held, that the oral promise was the promise to pay the debt of another within the statute of frauds; and that even if not within the statute, no damages resulted to the plaintiff as a result of the breach of the promise to pay the assessment.</p> <p>2. In such a case the plaintiff would have to show, in order to recover, that at the time of the sale the stock was worth more than it brought plus the assessment and his share of the voluntary fund. In the absence of such evidence he was entitled- to nothing.</p>